Chap018 - Chapter 18 - Legal Issues: Recognizing Your Small...

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Chapter 18 - Legal Issues: Recognizing Your Small Business Needs CHAPTER 18: LEGAL ISSUES: RECOGNIZING YOUR SMALL BUSINESS NEEDS Chapter Summary This chapter covers several aspects of law including the legal business structures that small businesses assume, reasons why to select each one and what their advantages and disadvantages are. Negotiations, contracts, intellectual property and legal liabilities are explored. Most importantly, advice is given as to where to get legal information and help. Learning Objectives After studying this chapter, the student should be able to: 1. Know when you need legal information and how to get it. 2. Understand the legal business structures that relate to small business. 3. Learn how to master the process of negotiating. 4. Recognize potential legal liabilities for your business. 5. Know contract terms and when a contract is needed. 6. Understand the basics of intellectual property. Focus on Small Business: Brian “B-Money” Hughes “B-Money,” a successful hip-hop artist learned the importance for having a sharp lawyer the hard way when his first allowed a sizeable financial gain to slip by. Focus on Small Business: Discussion Questions 1. Given B-Money’s experience, if you were interviewing a potential lawyer, what sort of questions would you want to ask? Probably the most critical would be his or her experience in the industry. Number of clients might allow you to estimate how much attention he or she is likely to give to you. You could ask whether or not he or she will work on a contingency type fee, only this time as a percentage of earnings. 18-1
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Chapter 18 - Legal Issues: Recognizing Your Small Business Needs 2. Can you think of anything you could have said to your lawyer to get a better outcome during the negotiation with 50 Cent? If you were knowledgeable in the industry you could have pointed out the cost 50 Cent would incur to redo the soundtrack. Pointing out 50 Cent’s previous record might have shown the lawyer that a royalty was better. 3. Did B-Money have any recourse when it turned out his first lawyer was just not very good at the music business? This probably depends on the sort of arrangement B-Money had with the lawyer. If there were certain penalties written in a contract, B-money may have been able to collect damages. If the lawyer had intentionally defrauded him – and not just been inexperienced in the industry – B-Money would also have legal recourse. Extended Chapter Outline Note: Key terms are in boldface. Teaching tool Internet application International application Group activity Objective 1: Know when you need legal information and how to get it. 1.1 The United States is one of the most litigious societies in the world. 1.1.1
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Chap018 - Chapter 18 - Legal Issues: Recognizing Your Small...

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