Wk1 2 operation1
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Wk1 2 operation1 Wk1 2 operation1 Presentation Transcript

    • REVIEW
    • OPERATION I
      • FINANCING STADIUM
      • CONTRACTUAL ISSUES
    • WRAP-UP
    • AMERICAN LEGAL SYSTEM
      • Checks & balances among three branches
      • Unique function of each branch
      • Dual court system
      • What trial & appellate courts do
      • Types of case
      • Jurisdiction
    • ANATOMY OF LEGAL PROCEEDINGS
      • Complaint  answer  discovery  settle or trial
      • How a trial ends
        • Early dismissal
        • Settlement
        • Full trial
    • LEGAL ANALYSIS & REASONING
      • Interpretation of law
        • Constitution
        • Statute
        • Agency regulations
        • Common law (case law)
    • FINANCING STADIUM: GENERAL RULE
      • Municipalities may not incur debt to support a private business unless it clearly serves a public purpose
      • Use of public finds in sports
        • MLB: 80%
        • NFL: 70%
    • FINANCING STADIUM: HOW TO JUSTIFY USE OF PUBLIC FUNDS?
      • Q at issue: Whether building a stadium for a sport franchise serves a significant public purpose
        • What is public purpose?
        • Is there any unique value involved with sport franchises?
    • FINANCING STADIUM: EXAMPLE #1 (BENGALS)
      • Hamilton county used public fund (458 million) for a new stadium for Bengals (increased sales tax by 1%)
      • Bengals promised more $$$ coming in & better record
      • Bengals kept losing & the county sued for renegotiation
      • Parties settled by mediation
    • FINANCING STADIUM: EXAMPLE #2 (TWINS)
      • Twins leased the Metrodome for exceptionally favorable contract terms
      • Twins wanted to get out of the lease for “Act of God”
        • Act of God: If something uncontrollable happens, a party can get out of lease contract
        • First, Twins sells the team to MLB for $250 million
        • Second, MLB terminate the franchise  “Act of God”  Twins may go another city under the “Act of God” provision
    • FINANCING STADIUM: EXAMPLE #2 (TWINS)
      • Court rule: “Local professional sport franchises are an important community asset and should fulfill their contractual obligations at an utmost level”
        • “ You have argued that you are so special”
        • “ Yes, you are special so here we make you special…”
    • FINANCING STADIUM: GENERAL RULE
      • Building stadia serves public purpose in general
      • Use of public funds OK
      • Opponents may not have viable legal challenges
      • Political Q > legal Q
    • CONTRACTUAL ISSUES: INTRODUCTION
      • Contract: “legally enforceable agreement”
      • Elements for contract formation
        • Offer
        • Acceptance
        • Consideration
        • No defense
    • CONTRACTUAL ISSUES: OFFER
      • Clear manifestation of desire to make a contract
      • Example 1
        • “ I hope I can buy a BUICK right now”
        • “ I would pay if someone can mow my lawn”
      • Example 2
        • “ I will give you my house for $10,000”
        • “ I will pay $500 for using this gym on Monday next week from 9:00 a.m. to midnight”
    • CONTRACTUAL ISSUES: ACCEPTANCE
      • Must accept without additional terms
        • A: “I will pay $500 for using this gym on Monday next week from 9:00 a.m. to midnight”
        • B: “OK. But only until 11:00 p.m.” (no contract for additional term “only until…”)
      • Additional term  Counter offer
        • A: “I will pay $500 for using this gym on Monday next week from 9:00 a.m. to midnight”
        • B: “OK. But only until 11:00 p.m.”
        • A: “OK. Then I will use it by 11:00 p.m.” (Contract OK)
    • CONTRACTUAL ISSUES: CONSIDERATION
      • Must be a “bargained for” promise (not a gift)
      • Example 1 (no contract)
        • “ I will give you $500 tomorrow”
        • “ I will give you $100,000 when you turn to 30 years old”
      • Example 2 (exchange of something  contract)
        • “ I will give you my BMW for $500”
        • “ I will give you $10,000 if you quit smoking”
    • CONTRACTUAL ISSUES: NO DEFENSE
      • There must not be a defense to make it null
      • Examples: A contract is void if 
        • A party lacks capacity (e.g., a minor, intoxicated)
        • Contract made under duress (e.g., gun on head)
        • Contract for performing an illegal conduct
        • Statute of Fraud applies (e.g., if contract is for goods which has value over $500  MUST BE WRITTEN)
    • CONTRACTUAL ISSUES: LEASE CONTRACT
      • A contract between a facility owner and tenant
        • A sport team & stadium owner
        • A event host & city
      • Try to anticipate all (hopefully) foreseeable events
      • Detailed contract  less chance of litigation
    • CONTRACTUAL ISSUES: LEASE CONTRACT (COMMON CLAUSES)
      • Rental & revenue sharing
      • Non-assignment & choice of law
      • Harmless: Owner not liable for 3 rd party’s injury
      • Indemnification: Owner will get paid back if sued
    • CONTRACTUAL ISSUES: LEASE CONTRACT (COMMON CLAUSES)
      • Insurance clause: Requiring tenant to get insured
      • Force Majeure: Relieving party for Act of God
      • Damage clause: Tenant must pay for damage
    • CONTRACTUAL ISSUES: GAME CONTRACT
      • Example: Contract between home & visiting team
      • Must include:
        • Location, time, & place of game
        • Financial arrangement
        • Termination clause (e.g., liquidated damage)
        • Promotional rights (sponsor’s rights)
    • CONTRACTUAL ISSUES: SALES OF GOODS
      • Contract about transaction of goods
      • Must include:
        • Description of goods
        • Price and payment schedule
        • Warranty & guarantee of satisfaction
        • How & when contract may be cancelled
    • CONTRACTUAL ISSUES: SERVICE CONTRACTS
      • Contract about services
      • Must include:
        • Independent contractor provisions (≠ Employee)
        • Requirement of insurance
        • Indemnification provisions
        • Guarantee of satisfaction
    • FINANCING STADIUM
      • Use of public fund for building stadia is OK because it is deemed to serve public interest
      • More political than legal issue now
      • But court may be against sport franchise when it tries to circumvent lease terms (i.e., public asset)
    • CONTRACTS: ELEMENTS
      • Offer
      • Acceptance
      • Consideration
      • No defense
    • CONTRACTUAL ISSUES IN OPERATION
      • Lease agreement
      • Game contracts
      • Sales contracts: Goods & services