CONSULTING FOR ENTERTAINMENT WEEKLY – QUESTIONS In your report to Entertainment Weekly, your team has been asked to address the following questions from both vantage points: Disney and Ms. Lee.
Q. 1. Was Lee entitled to a percentage of the videocassette sales or can Disney deny the payment under the contract’s provisions? Separately, discuss the two grounds of Lee’s suit:
a. Breach of contract: Specifically identify contractual language that supports each party’s argument. Discuss both sides of the issue of whether the distribution of the videocassette was authorized by the 1952 contract. Reach a conclusion based on your analysis.
b. Invasion of privacy: Specifically identify the form of invasion of privacy Lee is alleging along with any defense(s) Disney has. Debate both sides of the issue of whether Disney invaded Lee’s privacy. Reach a conclusion based on your analysis.
Q. 2. Explain the relevance of Disney’s custom, practice, and usage of declining to give voice performers participation deals. How does the testimony affect the interpretation of the parties’ intent on entering the contract?
Q. 3. If Disney prevails in this lawsuit, how much is Lee entitled to?
Q. 4. How did Lee calculate her claim of $9,000,000?
Q. 5. Explain the difference between sales revenue, gross profit, contribution to overhead, and profit before tax.
Q. 6. Assume that Lee prevails in the lawsuit; calculate the amount of Lee's damages based on 12.5% of profits. Support your calculation with an explanation of your logic.
Q. 7. Assuming that Lee prevails, the court will allow her prejudgment interest at the rate of 8% from the date of demand (assume that this is from February 28, 1988) until the judgment date (assume that this is March 1, 1991.) Using your calculations in question 6, calculate the interest that Lee will receive on her judgment and the total amount, interest plus damages, that Lee is likely to be awarded.