1. Chapter 9 Contract Considerations Contract Considerations C H A P T E R 9

2. Legal Considerations Insurance –These needs are determined by the type and location of your event. –Liability insurance is necessary no matter what because a facility owner will require you to purchase it to protect their interest in your event. Weather –Cancellation insurance can ultimately save an event from bankruptcy before it has a chance to happen. –Cancellations can occur because of weather, power outages, flu outbreaks, and other unforeseen circumstances. (continued)

3. Legal Considerations (continued) Employment –Staffing of events is key to providing a safe environment. –Hiring adequate supervision and a trained and competent staff protects the event and facility managers. –Employers must comply with federal laws. –For the most part, sport organizations rely on volunteers. –Select the most qualified volunteers because the success of the event largely falls on their shoulders. (continued)

4. Legal Considerations (continued) Regulations, licenses, and permits –What you offer during your event will dictate the types of regulations, licenses, and permits you need. –Common regulations are the use of loudspeakers in public areas, performing in a public area, and building permits. Food handling –When food is improperly handled, it leads to illnesses of guests. –Hiring a food service manager with experience and proper training will ensure you have taken the necessary steps to offer quality food service. (continued)

5. Legal Considerations (continued) Liquor –Event managers face the difficult decision of whether to serve alcohol. –Alcohol is a great source of revenue, but if you serve alcohol you incur risks. –Develop a comprehensive alcohol management plan that is part of your overall risk management plan.

6. Contract Law 101 Agreements between events and facilities, events and vendors, and events and ancillary contractors must be negotiated and formalized. A contract is a promise that requires that an offer be presented, considered, and accepted and the parties will enter into a legal relationship. Two types of contracts: –Bilateral involves two parties engaging in a promise. –Unilateral is one direction; an offer is made but not accepted.

7. Contracts Offer: The initial promise that one party gives to another to either do something or not do something. There is usually a price tag included. Acceptance: When the person being offered something accepts the conditions. Consideration: Something of value offered by one person in exchange for something of value from the other person. Capacity: Being of legal age and mentally capable of understanding the conditions of the promise. Legality: The promise must be based on a legal transaction.

8. Types of Contracts Facility –Because most facilities do not put on their own events, they look to lease the use of their facility. –When renting out a facility, the facility manager and event manager often have to come to an agreement and sign a contract. Game –These contracts are formed so there are no discrepancies in the terms of the agreement between the teams participating. –The date, time, location, compensation for playing, any travel reimbursement, rules, and regulations are always included in the contract. (continued)

9. Types of Contracts (continued) Sponsorship –Formed to protect the best interests of the parties involved. –Expectations, rights, benefits, fees, terms, governing laws, marks, logo usage, and duties should be discussed in the contract. Waivers and releases –If the event is participatory (e.g., a sport competition), use waivers. –A waiver releases the organization from liability should the participant become injured during the event.

10. Federal Legislation Events must follow the rules and restrictions of the facility where they operate. Americans with Disabilities Act (ADA) –Formed in 1990, this act aimed at mainstreaming people with disabilities into all aspects of society. –Facilities are required to provide barrier-free accommodations that could require modifications to current layouts. –Everything such as event forms and hotel accommodations need to be taken into consideration by the event planner. (continued)

11. Federal Legislation (continued) Occupational Safety and Health Administration (OSHA) –The primary goal is to reduce the number of job-related illnesses, injuries, and deaths in the United States. –The tragedy of the Indiana Sate Fair in August 2011 is an example of why laws like OSHA are needed. –This shows why event managers must perform due diligence in hiring qualified staff and subcontractors.