Chapter 9

Question 1

What are 4 main reasons to conduct your event in accordance with the established laws and regulations?

Answer 1

1. protect you legal interest
2. operate ethically
3. provide a safe and secure environment
4. protect your financial investment

Question 2

What does the promise spelled out in a contract require? (3)

Answer 2

1. an offer must be presented and accepted
2. there must be some form of considerations
3. that the parties have the capacity to enter into a relationship
4. that it be legal

Question 3

What is an offer as it relates to contracts?

Answer 3

the initial promise that is made by one party to either to do something or not to do something. This offer usually has a price tag attached

Question 4

What is acceptance of an offer as it relates to contracts?

Answer 4

when the person offered something of value accepts the conditions this is acceptance of an offer. Should the offer not be accepted, then the offer is voided

Question 5

What is consideration as it relates to contracts?

Answer 5

involves one person offering something of value in exchange for something of value from the other person. Both persons have to get!

Question 6

What is capacity as it relates to contracts?

Answer 6

Each party must have the capacity to enter into the contract. Capacity often relates to factors such as legal age or mental capability of understanding

Question 7

What is legality as it relates to contracts?

Answer 7

both state or federal laws must not be broken in the formation of the contract

Question 8

What are some tips for negotiating contracts?

Answer 8

1. don’t be afraid to ask
2. never negotiate against yourself
3. get it in writing
4. prepare
5. listen to the other side
6. discuss
7. avoid form contracts
8. make sure the decision makers are in the room
9. remain flexible
10. prioritize
11. remember all things are negotiable in a contract

Question 9

How does OSHA affect event managers?

Answer 9

you must perform due diligence in hiring qualified and competent staff and sub contractors

Question 10

Cancellation insurance can ultimately…

Answer 10

save an event from bankruptcy before it has a chance to happen

Question 11

Cancellations can occur because of…

Answer 11

weather, power outages, flu outbreaks, and other unforeseen circumstances

Question 12

Rules for alcohol

Answer 12

Develop a comprehensive alcohol management plan that is part of your overall risk management plan. Limit alcohol purchase/intake

Question 13

2 types of contracts

Answer 13

bilateral and unilateral

Question 14

Bilateral

Answer 14

involves two parties engaging in a promise

Question 15

Unilateral

Answer 15

one direction; an offer is made but not accepted

Question 16

Unilateral

Answer 16

one direction; an offer is made but not accepted

Question 17

Offer

Answer 17

The initial promise that one party gives to another to either do something or not do something. There is usually a price tag included

Question 18

Acceptance

Answer 18

When the person being offered something accepts the conditions

Question 19

Consideration

Answer 19

Something of value offered by one person in exchange for something of value from the other person

Question 20

Capacity

Answer 20

Being of legal age and mentally capable of understanding the conditions of the promise

Question 21

Legality

Answer 21

The promise must be based on a legal transaction

Question 22

Occupational Safety and Health Administration (OSHA)

Answer 22

1. The primary goal is to reduce the number of job-related illnesses, injuries, and deaths in the United States.
2. The tragedy of the Indiana Sate Fair in August 2011 is an example of why laws like OSHA are needed.
3. This shows why event managers must perform due diligence in hiring qualified staff and subcontractors.