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Business Relationship Laws: Legalities and Violations Report


The legal scenario, in this case, provides an example of how the law is important in regulating business practices. From the case of Leon Musk and Alto Chef, it is evident that the law of the contract was used. This can be justified from the clause indicating the amount of compensation to be paid by Alto chef in case of damages. However, one understands how the scope of liability is critical in understanding the applicability of business law. Other important issues to understand from the case analysis include marketing and human resource management issues associated with business law.

Law of contract

This branch of the law defines a contract as a binding agreement between parties involved in commercial activities (Adams 2004, p.64). The contract is evidence of negotiation involving sale or hiring of services as in event organization. However, there are principle elements constituting a binding contract. These elements include an offer, acceptance, consideration, and intention to create legal relations (Koffman & Macdonald 2010, p. 17).

Offer: Leon Musk offers Alto Clef with a venue to host a gig. From the offer, a total of £500, 000 is indicated as compensation in case of damages. The offer includes a performance period of 5 hours from 8 pm during the night. However, the contract between Leon Musk and Alto Clef did not have proof of intention to do business or communication of the same. Perhaps, this explains why Alto Clef continued to perform even after the event had a commotion before the gig started.

  • Acceptance: A contract shows acceptance of terms, and the same is communicated to the party making the offer.
  • Considerations: This constitutes benefits accrued from the contract by either of both parties. Leon Musk contract with Alto Clef does not detail the beneficiary of the contract. However, Leon Musk benefits from direct gate charges.
  • Intention to create legal relations: The agreement between Leon Musk and Alto Clef is commercial. In this regard, the law recognizes the legality of the contract.

Case law

The probable outcomes from the case imply the contract was breached. The scope of liability in terms of damages indicates that Alto Clef can only compensate Leon Musk for five hours of performers. The disruption and damages at ‘The Party Factory’ started at 5 pm a few hours before 8 pm. The queuing system, as well as the security, was handled by Leon Musk. This justifies why Alto Clef is not liable for the damages caused at the venue. However, this protection can only be determined by the courts through an exclusion clause in the contract.


From the above legal scenario, fans can be refunded for damages. Refunding the funds partially or in full would be considered. This is because the case exemplifies a contract between the fans and event organizers. However, it is evident that the fans did enjoy Alto Clef performance. In the same context, the court can determine whether paying damages is justifiable since the fans were involved in riots. Determining the quantum of damage is critical in evaluating the extent that the compensation can be settled (Adams 2004, p. 9). From this perspective, the loss incurred at the venue must be financially quantifiable. Also, the court ensures that damages are not altered. The court also determines whether the injured mitigated the loss. This is because the injured may have contributed to the negligence that caused harm.

Marketing issues

Alto Clef’s gig at ‘The Party Factory’ venue suggests there were marketing issues that required attention. There is a high probability that the lack of good marketing structures might have contributed to the commotion. With effective marketing strategies and legal guidelines on the same, it is easier to determine who is liable for the damages at the venue.

As indicated earlier, the case provides an example where legal marketing issues must be addressed. In this regard, the licensing issue is the most notable among other things (Adams 2004, p. 514). From the example, Leon Musk has no performing rights from Alto Clef. Therefore, Leon Musk cannot use music or any form of privileges to market the ‘The Party Factory’ event.

It is evident that the event was regulated by an agreement between the two parties. However, with behaviors that endanger the public and pose harm to fans, other laws are enjoined in the agreement. For example, the police authorities intervened when the doorman injured some of the fans during the commotion. Criminal law takes effect when civilians’ welfare is endangered by acts of commission or omission. Also, the Performing Rights Society (PRS) intervenes to ensure that Alto Clef only engages in activities licensed without infringement. For example, it is illegal for Alto Clef to promote its event using another party’s music without a license or paying loyalties to the copyright owner.

Marketing an event requires legal considerations such as the public nuisance (Schwartz & Goldberg 2005, p. 541). From this perspective, the scope of liability in terms of public nuisance goes beyond those attending the Alto Clef event. The comfort and convenience of the public are highly regarded in both criminal and civil law. From the example, behaviors such as damaging property and intentionally hurting other people are regarded as criminal in nature and subject to imprisonment.

The infringement of property rights was exhibited when one of the artists used a trademark dance move as a marketing strategy (Lancaster& Reynolds 2003, p. 75). From the example, Brihanna performance involved a signature dance move she wanted to use in marketing her music. However, Brihanna verbally warned the fans against taking photos and recording her dance move using mobile phones. The fans did not obey the request and instead booed her off the stage. This prompted a series of misfortunes at the event. The fans felt short-changed, and that Alto Clef had violated its license. Interestingly, the fans caused a riot and destruction of property before an investigation against Alto Clef was launched.

From a marketing perspective, the fans violated a legal provision on the use of trademarks. The fans had no right to take photos and recordings at the event, especially after the request from the artist who is considered the copyright owner. This gives the artist and Alto Clef a legal foundation to breach the contract and violate the license to perform at ‘The Party Factory. The fans also have no legal authority to launch a complaint against the defendant because of taking part in criminal activities that are self-incriminating. From this perspective, the possible outcome from the scenario is no refunds for the fans. In any case, Alto Clef and ‘The Party Factory’ have a right to launch a complaint against the fans for damages.

Human resource management issues

Human resource management is a critical process ensuring employees are committed to achieving organizational goals. However, human resource management must comply with employment and labor laws. For example, hiring of employees must be subjected to legal scrutiny, especially when undertaking a collective bargaining agreement. Other legal issues associated with human resource management include the industry, talent management, benefits, acquisition, and use of resources.

Criminal and civil law interest in human resource management concerns health and safety issues. Criminal law manifests itself when a breach of legislation requires police intervention. A breach of criminal legislation was evidenced when people got hurt in a commotion, and police had to intervene at ‘The Part Factory’ event. From this perspective, criminal law plays a significant role in managing people as a resource (Soliman & Spooner 2000, p. 337). The doorman who caused bodily harm to fans is eligible for criminal investigations and punishment.

The infringement to the trademark as evidenced when fans took photos of Brihanna’s dance move amounts to a civil case. In this regard, a complaint against the fans and possible financial reparation is considered a way of protecting the integrity of employees and their work.

Civil law is concerned with employment and regulations as envisioned in Acts of Parliament and Common Law. In this regard, human resource management is restricted against acts of employee discrimination, harassment, and unfair dismissal (Botero, Djankov, La Porta, Lopez-de-Silanes & Shleifer 2004, p. 1339). This means that Alto Clef must ensure their employees are not subjected to harassment at the workplace.

In this regard, Alto Clef is liable for not protecting Brihanna against the fans. On the other hand, criminal law ensures employees are protected from health and safety risks. The exposure of Vicki Zinaj to unhealthy working conditions that led to her collapse while on stage is a criminal act. Alto Clef should be sued for providing an unhealthy environment to an employee who was unwell. The employee was exposed to large doses of vodka that is intoxicating and unhealthy. Moreover, the caving of the stage and endangering of the drummer constitutes to a criminal charge. It is the obligation of the employer to provide a safe working environment as envisioned in the Health and Safety at Work Act (Banfield & Kay 2012, p. 169).

Issues of human resource management, especially those related to civil law, are arbitrated in an employment tribunal (Banfield & Kay 2012, p. 169). However, a complaint can be addressed at a civil court, compelling the employer or employee to pay for damages. On the other hand, acts of crime are decided in criminal courts.

Application of Sex discrimination Act of 1975 is an emphasis on responsible human resource management. Behaviors involving sexual insults and physical intimidation are subjected to this law. In any case, compensation, re-engagement, and imprisonment are considered a remedy for sexual discrimination and harassment.


Issues of legal, marketing, and human resource management are critical in business regulation. A business organization or employer ought to understand the legalities of engaging in a contract. Businesses are obligated by law to obey contracts and issues surrounding their legalities and violations. This is done through learning marketing issues requiring legal and ethical regulations. Business operations are managed by humans, and their management with respect to observing criminal and civil law is paramount.


Adams, A 2004, Law for business students, Longman, London. Web.

Banfield, P & Kay, R. 2012, Introduction to human resource management. Oxford University Press, Oxford. Web.

Botero, J C, Djankov, S, La Porta, R, Lopez-de-Silanes, F & Shleifer, A 2004, ‘The regulation of labour, The Quarterly Journal of Economics, Vol. 119, No. 4. pp. 1339-1382. Web.

Koffman, L & Macdonald, E 2010, The law of contract. Oxford University Press, Oxford. Web.

Lancaster G & Reynolds P 2003, Marketing made simple, Routledge, New York. Web.

Schwartz, V E & Goldberg, P 2005, ‘Law of Public Nuisance: Maintaining Rational Boundaries on a Rational Tort’, The Washburn Law Journal, Vol.45, pp. 541. Web.

Soliman, F & Spooner, K 2000, ‘Strategies for implementing knowledge management: role of human resources management, Journal of Knowledge Management’, Vol. 4, No.4. pp. 337-345. Web.

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