II. Main Cultural products 7. Cultural Events

Section 7.9: Legal Issues, Regulations, Requirements

Entrepreneur enters the market as the owner of a cultural product, who not only organizes and co-ordinates the event, but also is responsible for legal liabilities. Therefore all actions of entrepreneur must be legally correct – one must work out and sign mutual agreements.

In contracts the following must be included:

• Contracting parties must be shown with all company details
• A detailed description of the mutual agreement (purchase of a good or service) and indicators of quality and quantity
• Conditions of mutual agreement – price, terms of payments, terms and place of delivery, responsible bodies of parties and penalty sanctions
• Signatures of both parties confirming that both parties understand and agree about contents of the contract.

It is important to remember that contracts must be concluded with all involved parties – suppliers, media, sponsors and supporters! In case the cultural event is being organized in the territory or venue, owned by other company, a contract must be concluded with them as well.

The process of concluding an agreement is a very important part of event organization. Theoretically it can be divided in following steps: interest, discussions, mutual agreement, discussion about terms and conditions, signing of the contract and its enforcement.

All local and national regulations and requirements must be complied in bussiness (requirements of commerce, security, sanitary and environment protection). In this case following steps have to be taken:

1. Ticket registration in the state tax department
2. Permission from food control department for on site trading obtained
3. Permission to sell excise goods (cigarettes and alcohol) obtained
4. Confirmation of advertisement in municipality, taxes for its disposition
5. Compulsory payments for copyright agency for public playing of music
6. Regulations of state environment agency observed.

In spite of the fact that the permit to sell excise goods is claimed and received by the merchant of these goods, the person that is responsible for the function of control is the owner of the event . Therefore obtaining of the permits must be monitored, otherwise the entrepreneur is taking risks. Event can be called off or forbidden by representatives of appropriate authorities.

If an advertising agency is being involved, it is responsible for all taxes of advertisement disposition an confirmation process in municipality; if the taxes have not been paid, the local government can take the posters off.

It is important to remember that concluding a contract truly decreases risks: breach or non-fulfilment of mutual agreement as well as financial loss.

Questions

Questions