Mainline v Basinger   Term Paper ID:45325 Click to get this paper

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Paper Introduction: assessing specific issues related to mainline v basinger Introduction Mainline v Basinger concerned a claim by Mainline Pictures Inc ofbreach of contract by Kim Basinger actor In the legal action Mainlineprimarily sought compensation for lost profits that the company attributedto the withdrawal of Basinger of her participation in a motion pictureproject Six specific questions related to this legal dispute are assessedin this paper Although the six issues are interrelated each is assessedseparately Essentially two overriding concerns are addressed in the assessments The Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Based on expected domesticdistribution revenues for a Boxing Helena film starring Basinger, Mainlinecould expect net domestic revenue approximating $3.1 million (refer toTable 1). Although the six issues are interrelated, each is assessedseparately. The investor advance toMainline of $1.7 against expected domestic revenues is immaterial to theMainline - Basinger contract dispute. This requirement satisfied thecriterion for a valid contract. The recommendation fordamages for Mainline, thus, was to revise downward the domesticdistribution revenue claim to approximately $1.4 million (refer to Table1).|Table 1: Contribution Margin Analysis - Domestic Distribution Revenue ||Basinger Participation |"Without Basinger" Film ||Expected Revenue |$5,1 , |Expected Revenue |$2,7 , ||Distributor Costs |- 2, 4 , |Distributor Costs |- 1, 8 , ||[4 %] | |[4 %] | ||Contribution Margin |$3, 6 , |Contribution Margin |$1,62 , ||Without Basinger |-1,62 , | | ||Effect | | | ||Recommended Damages |$1,44 , | | |Foreign Pre-Sales Revenue & "Without Basinger Issue The issue of contract validity was addressed in the assessment ofdomestic revenue distribution. Basinger satisfied each ofthese demands. The consideration of foreign pre-salesrevenue proceeds from the assumption of contract validity. (2 4). H., Noreen, E. Basinger later testified that, inpart, her decision to withdraw her participation in the motion pictureproject were concerns about proposed graphic scenes that were adult innature (presumably sexual), as well as concerns about the personality ofthe character that she would portray. ReferencesGarrison, R. The contribution marginanalysis is summarized in Table 1, which may be found on the followingpage. The fourth requirement for a valid contract isconsideration. Basinger had agreed to the Mainline - Basinger contract prior toher withdrawal, and this action supported the validity of the contract. Issue 3: Estimating Foreign Revenue beyond Pre-Sales The only valid basis for the determination of Mainline lost profitsassociated with foreign pre-sales is the contractual agreement betweenMainline and foreign distributors. $6 , was to be paid prior to Basinger prior to the beginning of filming, and$4 , was to be paid to Basinger later. The comparison is fair to both Mainline and to Basinger, as itprovides a basis for the equitable determination of lost profits byMainline. In the legal action, Mainlineprimarily sought compensation for lost profits that the company attributedto the withdrawal of Basinger of her participation in a motion pictureproject. The contributionmargin analysis of foreign pre-sales revenue is summarized in Table 2,which may be found on the following page. St. Breaching thefirst contract, however, does affect the fate of the second contract.Agreement on a contract requires an offer and an acceptance in the absenceof duress. The third factor is lost profitattributable to production of the motion picture with a replacement actorin the role envisioned for Basinger. These issues, however, did not causethe proposed file to be of other than lawful purpose. ofbreach of contract by Kim Basinger, actor. The contract between Mainline andBasinger was to be a contract for services, as opposed to a contract forgoods. The requirements for a valid contract, according to the common law ofcontracts are (a) lawful purpose, (b) agreement between parties, (c)capacity to perform, and (d) consideration. This loss can be affected by the "WithoutBasinger" film. The secondfactor is foreign pre-sales revenue. Therecommendation for damages for Mainline, thus, was to revise downward theforeign revenue claim to approximately $5.6 million (refer to Table 2).|Table 2: Contribution Margin Analysis - Foreign Pre-Sales Revenue ||Basinger Participation |"Without Basinger" Film ||Expected Revenue |$12,7 , |Expected Revenue |$4,98 , ||Distributor Costs |- 5, 8 , |Distributor Costs |- 1,992, ||[4 %] | |[4 %] | ||Contribution Margin |$7,62 , |Contribution Margin |$2,988, ||Without Basinger |-2,988, | | ||Effect | | | ||Recommended Damages |$5,632, | | | Issue 2: Basinger Payment for Final Analysis, and Revenue Generation Comparison between Basinger and Replacement The payment to Basinger by Mainline for her services in the productionof Final Analysis is immaterial to the issue of the breach of contract inrelation to Boxing Helena. The comparison of the revenue generationexperience of Basinger files and films starring the replacement actor,Fenn, is relevant to the issue of breach of contract in relation to BoxingHelena. The pre-sales contract represents theknown loss for Mainline. Issue 6: Jury Award The jury awarded Mainline breach of contract damages approximating$7.4 million. A. The components of the $7, 72, would be $1,44 , (domestic) and $5,632, (foreign). This writer would have awarded Mainline breach of contractdamages of $7, 72, . Paul, MN: West Publishing. Expected foreign revenue for the "WithoutBasinger" film approximated $3. Based on expected foreign pre-sales revenues for a Boxing Helena filmstarring Basinger, Mainline could expect net foreign revenue approximating$7.6 million (refer to Table 2). Basinger concerned a claim by Mainline Pictures, Inc. Basinger contended that she was not liable for these lostprofits because the domestic distribution contract has not been completedprior to her withdrawal. basinger Introduction Mainline v. The contribution margin is the difference between revenue and variablecosts (Garrison, Noreen, & Brewer, 2 6). Mainline has other expensesthat it meets other than distribution expenses. The effect on Mainline's lost profit of the release of the"Without Basinger film is included in the analysis. C. This writer would nothave made this latter award. Issue 5: Supposition - Basinger Continued Participation An assumption by mainline was that domestic distribution revenue wouldfall by $3 million as a consequence of Basinger's withdrawal from theBoxing Helena project. The fact is that two separate contracts areinvolved. assessing specific issues related to mainline v. Essentially, two overriding concerns are addressed in the assessments.The first concern is a determination if Basinger was liable to Mainline forlost profits. Consideration was offered by Mainline to Basinger. Six specific questions related to this legal dispute are assessedin this paper. Issue 4: Considering "Without Basinger" and an Investor Advance of $1.7 Million The expected effect of the "Without Basinger' film should be appliedto the determination of the appropriate level of damages that are to beawarded to mainline. (11th ed.). W., & Brewer, P. Issue 1: Revision of Mainline's Lost Profit Claims Mainline claimed lost profit damages in relation to three factors. There were no questionsconcerning the legality of this film. (2 6). The third requirement for a valid contract, capacity to perform,demands that parties to a valid contract (a) have the authority to act and(b) possess the maturity (legal age) to act. Managerial accounting. The motion picture that was thefocus of the intended contract was Boxing Helena. The finalizationof the second contract does not affect the first contract. Thefirst factor is domestic (United States) distribution revenue. Whether or not the $3 million was derived from adomestic distribution contract, however, this level was not going torepresent the Mainline pre-tax cash position. Expected domestic revenue for the "Without Basinger" filmapproximated $1.6 million (refer to Table 1). This application was included in the assessmentspresented in this paper in relation to Issue 1. The determination of appropriate loss for which Mainline should becompensated by Basinger is made through the application of contributionmargin analysis to the available date relative to domestic distributionrevenue. Principles of contract law. The jury also awarded Mainline$1,5 , for bad faith on the part of Basinger. The third factor is assessed inconjunction with each of the other factors.Domestic Distribution Revenue & "Without Basinger Issue The initial requirement in relation to the assessment of the Mainlinedamage claim related to domestic distribution revenue is a determination ofthe existence of a valid contract. Burr Ridge, IL: McGraw-Hill/Irwin.Hillman, R. Thus, the common law of contracts, as opposed to the UniversalCommercial Code, was the applicable law (Hillman, 2 4). The second concern is a determination of the appropriatelevel of damages for which Mainline should be compensated if Basinger wasliable. One contract was between Mainline and Basinger, and the secondcontract was between Mainline and a domestic distributor. million (refer to Table 2). The second requirement for a valid contract, agreement between theparties, however, does affect the factor of domestic distribution revenue.Mainline contended that it suffered lost profits in relation to domesticdistribution revenue as a direct consequence of Basinger withdrawing fromthe project. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.