SOLUTION: Fact Patterns in Business Law Essay

There are 3 fact patterns with multiple questions under each fact pattern. Choose and answer only 2 of
the fact patterns. You must write your answers clearly and in complete sentences. Each answer to each
fact pattern should not exceed 5 pages (Double Space, Times Roman Font, Font Size 11). Some
questions will require more information; while others will not. Therefore, you must answer only 2 fact
patterns, and so the maximum number of pages for both answers is 10 pages.
Please consider your answers carefully as there can be many answers to these questions; however,
the best legal analysis to the 2 fact patterns that you choose shall determine your grade. I will take
the top grade from one of your 2 fact patterns answers. Certain contract terms and explanation to why
those terms are applicable to the facts may weigh more than others. Do not add all terms in your
answers but explain how the key terms are applied appropriately under the specific circumstance. You
must apply the facts in the fact patterns and also apply the outlines, the handouts, as well as any
applicable excerpts from the reading materials.
For example, one contract term that I would expect to see in a fact pattern dealing with how the Covid19 virus affects the entertainment industry would be “Force Majeure,” and the explanation of what and
why “Force Majeure” is significant in that situation; e.g., a Force Majeure clause is when a performance
of a contract is excused when an unforeseeable event e.g., an epidemic caused by the Covid-19 virus and
mandatory quarantine, outside of the parties’ control renders performance impossible or impracticable
thereby excusing performance and used as a defense to a breach of contract claim.
Best of Luck! It has been a pleasure teaching you about Entertainment Law; I hope you enjoyed it too!
FACT PATTERN #1
I am considering either you or one of your classmates for the Summer Law Associate position at our
law firm. In doing so, we are considering how you will answer these questions from the facts that are
recently presented to us. One of our famous clients, Talent Lena walked into our office and said that
she wants to form her own independent film company. Her goal is to produce a film that will provide
her with an Academy Award winning role. Ms. Lena is a well-known actress who has worked in the
industry for a long time. She is also a United States citizen and a California resident and is extremely
wealthy. She owns a lot of real properties and other assets, and wants to protect them from her new
film business. She also mentioned that she had discussions with her wealthy friend, Investor Chris,
who is a United Kingdom resident. Mr. Chris wants to be a part of her new production company and
to be involved in her independent film projects. They are thinking of shooting most of the film
projects in Louisiana because of the tax credits, and they hope to hire a sales agent and a collection
agent. Please provide a Legal Memorandum addressing the following:
QUESTIONS: A legal analysis of how you would advise Ms. Lena on entity formation in protecting
herself as an actress as well as protecting her personal wealth and assets.
Also please advise Ms. Lena in the creation of her new independent film company, including without
limitation, a legal analysis of the pros and cons of the entity structures that Ms. Lena should consider,
and the best management structure to such entity.
Please provide a legal analysis of the potential financial issues that Ms. Lena and Mr. Chris may face if
Mr. Chris acts as a lender or as an investor, including without limitation, the agreements and their
contract terms that Ms. Lena and Mr. Chris may consider.
Include other types of financing and the reasons for these financing that Ms. Lena and Mr. Chris may
consider in producing their film projects, and the recoupment process for these potential financiers.
FACT PATTERN #2
Congratulations! You made it as our Summer Law Associate at our law firm. Our highest fee-paying
Client is an independent studio named “Studio Tree Inc.” Studio Tree Inc. is interested in the
screenplay, written by Writer Nik. The screenplay is based on the true story of Mr. Nik’s aunt, a
famous ballerina. They may want to bring in another writer to help finish the screenplay. They want
Mr. Nik as the director of this film. They are interested in hiring our former client, Ms. Lena, who is a
famous actress and union member of the actor guild to play the lead acting role of the ballerina in
their film. They are considering shooting the film in New York, and there may be a scene in a theater
with a live audience. They want to have certain popular products shown in the film, and may use film
clips from old movies. Provide a Legal Memorandum addressing the following:
QUESTIONS: A legal analysis of the pre-production/ development issues that Studio Tree Inc. should
consider, including without limitation, optioning the screenplay and/or hiring writers, and any
applicable agreements and their terms.
Discuss any intellectual property issues (copyright, trademark, etc.) related to the screenplay and the
film.
Also provide a legal analysis of the production issues (e.g., clearance issue) and the agreements and
the key contractual terms that Studio Tree Inc. should consider; including without limitation, hiring Alist talent for actor and director as well as any crew-related issue, and the filming process of shooting
in New York.
FACT PATTERN #3
It is a year later, and you are back and hired as a full time Law Associate at our law firm. Studio Tree
Inc. is entering into a co-production, co-finance, co-distribution agreement with one of the big
Studios, Universal Pictures. You are now directly responsible for helping our Client, Studio Tree Inc.,
finish its film titled “You Did It” and distribute the film via Universal Pictures. The music that Studio
Tree Inc. wants to add to their film is a popular song by the famous band Coldplay. Studio Tree Inc. is
also interested in creating their own song to put in the film soundtrack. Universal Pictures will be
distributing the film worldwide (but excluding the North American territory which will be distributed
by another Studio Paramount), and may consider using a sales agent and sub-distributors for those
foreign territories. The film will have its first premiere at the Cannes Film Festival in May with its
leading actors. Studio Tree Inc. intends on making promotional materials, e.g., movie posters, and
creating new merchandise for the film. Please provide a Legal Memorandum advising Client Studio
Tree Inc. regarding the following:
QUESTIONS: Provide a legal analysis of the music issues that Studio Tree Inc. will need to address in
order to complete the film, including without limitation, the relevant agreements and significant
contract terms.
Also, provide a legal analysis of the distribution arrangements and the contractual terms that Studio
Tree Inc. will have respectively with Universal Pictures and then with Paramount, and what significant
deliverable materials (and why) Studio Tree, Inc. should provide to Universal Pictures and Paramount.
Discuss other post-production issues and any legal and tax implications that Studio Tree Inc. needs to
consider and be aware of, including without limitation, promoting and publicizing the film, and selling
merchandise.

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