CVE Legal Compliance and Contract Management Questions and Answers Flashcards

A venue executive discovers that a promoter violated the exclusive merchandise agreement by selling unlicensed goods. The FIRST action should be to:

Answer: Document the violation and consult legal counsel before taking corrective action per the contract's remedy provisions

Documenting the violation and following contract remedy provisions ensures the venue's legal position is protected before taking any enforcement action.

Under US copyright law, who is responsible for obtaining public performance licenses (ASCAP, BMI, SESAC) for live music at a venue?

Answer: It depends on the contract — either the venue or the event organizer, as negotiated

Public performance licensing responsibility is a contractual matter, and the venue may hold blanket licenses or require promoters to obtain their own — this must be explicitly addressed in the agreement.

What is the key difference between venue liability insurance and event cancellation insurance?

Answer: Venue liability covers third-party injury/property claims; event cancellation covers financial loss from cancellation or postponement

Venue liability and event cancellation are distinct products addressing different risks — bodily injury/property damage versus lost revenue from a cancelled event.

A CVE should include a 'right to audit' clause in vendor contracts primarily to:

Answer: Verify that vendor-reported sales figures, costs, and compliance metrics are accurate

An audit clause gives the venue the contractual right to independently verify vendor financial reports, which is especially important in percentage-of-sales or revenue-share arrangements.

Which federal employment law most directly affects a venue executive's decisions about worker classification for event-day staff?

Answer: The Fair Labor Standards Act (FLSA), particularly its rules on independent contractors vs. employees

FLSA worker classification rules determine whether event staff must receive minimum wage, overtime, and employer payroll tax contributions, with significant financial and legal consequences for misclassification.

What is the purpose of including a 'cure period' provision in a venue license agreement?

Answer: To give the breaching party a defined time to correct a contract violation before termination remedies apply

A cure period provision gives the defaulting party a fair opportunity to remedy a breach before the other party may terminate the contract or seek damages.