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In 1 9 5 2 , singer Peggy Lee entered an agreement with Disney to work on the animated film Lady and the Tramp. Peggy
In singer Peggy Lee entered an agreement with Disney to work on the animated film Lady and the Tramp. Peggy Lee wrote six songs, sang three, and was the voice for four characters in the film. Lee was paid $ for her participation. Disney retained all rights to revenues earned from distributing the movie to theatres and television broadcasting companies in domestic and foreign markets. Lee retained the right to residual payments at for such items as phonographic recordings sold to the public. Specifically, the contract gave Disney the right to distribute the film including the rights to any other technology yet to be invented, but b of the agreement provided that Anything herein to the contrary notwithstanding, it is agreed that nothing in this agreement contained shall be construed as granting to us Disney the right to make phonograph recordings andor transcriptions for sale to the public, wherein results or proceeds of your services hereunder are used. In Disney began distributing videocassettes of the film. Lee sued in March claiming she was entitled to $ million. Specifically, she claimed that she was entitled to of the profits Disney generated from the sales of videocassettes of Lady and the Tramp on the basis that the distribution of the videocassettes was not authorized by the contract. Disney countered that the distribution of the videocassettes was authorized in the contract and that Lee was therefore entitled only to residual payments for her songs and voice performances, which would be capped under union rules at $ Disney introduced evidence that it was their custom practice and usage not to allow profit participation deals for voice performers in animated movies, a policy which evolved according to the testimony of Roy Disney, from the notion of absolute ownership, no strings attached...It stems from bad experiences Dad and Walt had in the s Further, there was testimony from Jodi Benson, the voice of Ariel in The Little Mermaid released in and Cheech Marin, a voice in Oliver & Coreleased in who each testified that Disney did not give voice actors profit participation deals. Required Assume that your consulting team has been hired by Art and History Magazine to provide an unbiased report on the merits of this litigation and the damage claims made by Ms Lee. Use the guidelines for writing a report found on the course website. The magazines editors intend to use your report to write an informative article that will appear in an issue of their journal. In preparing your answer, be sure to review financial accounting concepts and management accounting concepts and and business law concepts and Breach of Contract: Lee v Walt Disney Productions, The Entertainment Litigation Reporter, April Exhibit Lady & the Tramp Project Income Statement For the year ended Sales $ Cost of Goods Sold Marketing Expenses General & Administrative Profit before Tax $ These are fictitious statements and do not represent the actual results that Disney received from Lady and the Tramp. Notes: Cost of Goods Sold includes the costs to produce the videocassettes for sale to the public. Marketing Expenses include the direct expenses of marketing and distributing these videocassettes to the public. General and Administrative expenses are the indirect costs of running Buena Vista Home Video. They are allocated to each project of Buena Vista based on a formula. The formula is each project's sales revenue divided by total sales revenue generated by all projects multiplied by the total general and administrative costs of Buena Vista. Individual projects of Buena Vista are not charged income tax expenses since taxes are determined suit: a Bach of contract: Specifically identify contractual language that supports each partys argument. Discuss both sides of the issue of whether the distribution of the videocassette was authorized by the contract. Reach a conclusion based on your analysis. Answer this questions: Q If Disney prevails in this lawsuit, how much is Lee entitled to Q How did Lee calculate her claim of $ Q Explain the difference between sales revenue, gross profit, contribution to overhead, and profit before tax.
In singer Peggy Lee entered an agreement with Disney to work on the animated film Lady and the
Tramp. Peggy Lee wrote six songs, sang three, and was the voice for four characters in the film.
Lee was paid $ for her participation. Disney retained all rights to revenues earned from distributing
the movie to theatres and television broadcasting companies in domestic and foreign markets. Lee
retained the right to residual payments at for such items as phonographic recordings sold to the
public.
Specifically, the contract gave Disney the right to distribute the film including the rights to any other
technology yet to be invented, but b of the agreement provided that
Anything herein to the contrary notwithstanding, it is agreed that nothing in this agreement
contained shall be construed as granting to us Disney the right to make phonograph recordings
andor transcriptions for sale to the public, wherein results or proceeds of your services
hereunder are used.
In Disney began distributing videocassettes of the film. Lee sued in March claiming she was
entitled to $ million. Specifically, she claimed that she was entitled to of the profits Disney
generated from the sales of videocassettes of Lady and the Tramp on the basis that the distribution of the
videocassettes was not authorized by the contract. Disney countered that the distribution of the
videocassettes was authorized in the contract and that Lee was therefore entitled only to residual
payments for her songs and voice performances, which would be capped under union rules at
$
Disney introduced evidence that it was their custom practice and usage not to allow profit participation
deals for voice performers in animated movies, a policy which evolved according to the testimony of
Roy Disney, from the notion of absolute ownership, no strings attached...It stems from bad experiences
Dad and Walt had in the s Further, there was testimony from Jodi Benson, the voice of Ariel in The
Little Mermaid released in and Cheech Marin, a voice in Oliver & Coreleased in who
each testified that Disney did not give voice actors profit participation deals.
Required
Assume that your consulting team has been hired by Art and History Magazine to provide an unbiased
report on the merits of this litigation and the damage claims made by Ms Lee. Use the guidelines for
writing a report found on the course website. The magazines editors intend to use your report to write
an informative article that will appear in an issue of their journal.
In preparing your answer, be sure to review financial accounting concepts and management
accounting concepts and and business law concepts and
Breach of Contract: Lee v Walt Disney Productions, The Entertainment Litigation Reporter, April
Exhibit Lady & the Tramp Project Income Statement
For the year ended
Sales $
Cost of Goods Sold
Marketing Expenses
General & Administrative
Profit before Tax $
These are fictitious statements and do not represent the actual results that Disney received from Lady and
the Tramp.
Notes:
Cost of Goods Sold includes the costs to produce the videocassettes for sale to the public.
Marketing Expenses include the direct expenses of marketing and distributing these videocassettes
to the public.
General and Administrative expenses are the indirect costs of running Buena Vista Home Video.
They are allocated to each project of Buena Vista based on a formula. The formula is each project's
sales revenue divided by total sales revenue generated by all projects multiplied by the total general
and administrative costs of Buena Vista.
Individual projects of Buena Vista are not charged income tax expenses since taxes are determined
suit:
a Bach of contract: Specifically identify contractual language that supports each
partys argument. Discuss both sides of the issue of whether the distribution of the
videocassette was authorized by the contract. Reach a conclusion based on
your analysis.
Answer this questions:
Q If Disney prevails in this lawsuit, how much is Lee entitled to
Q How did Lee calculate her claim of $
Q Explain the difference between sales revenue, gross profit, contribution to overhead, and
profit before tax.
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