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The Law of Advertising
Copyright 2017, Matthew Bender & Company, Inc., a member of the LexisNexis Group.

1-2 The Law of Advertising 2.syn


The Relationship between the Media and Advertisers


James B. Astrachan.; Original Authors: George Eric Rosden;; and Peter E. Rosden

Chapter Summary


This chapter of The Law of Advertising (Matthew Bender) discusses the use of facilities contracts, which are agreements between media and advertisers for time, space, spots, or programs.

The chapter explores the requisites for a valid facilities contract. It examines the duties of the media to advertisers pursuant to a facilities contract, including the duty to furnish time or space, the duty to furnish a studio, the duty to announce commercials, and the duty to mitigate damages arising from errors in publishing advertising. The chapter also explains the duties that advertisers owe to the media, which include the duty to make timely payment, the duty to timely submit material, and the duty not to assign the rights emerging from a facilities contract.

The chapter next addresses when the Statute of Frauds requires a facilities contract to be written. Then, it examines how the expiration of the broadcaster's license, or the death or bankruptcy of the advertiser, affects the facilities contract. Further, the chapter discusses the remedies that are available for a breach of a facilities contract, which are specific performance, rescission, damages, and termination.

The chapter concludes by providing the standard provisions of spot confirmation television contracts, which the American Association of Advertising Agencies, the National Association of Broadcasters, the Station Representatives Association, and the Radio Advertising Bureau have all endorsed.

The Law of Advertising (Matthew Bender) covers the rules governing each party to the advertising contract: media, consumers, advertisers, and advertising agencies. It examines the relationship between the originators of advertising; constitutional problems in advertising, with coverage of commercial advertising and the First Amendment; the Federal Trade Commission's control of advertising; the law regarding specific statements, such as representations as to quantity, quality, effect, and price; procedure before the Federal Trade Commission; liabilities of the parties of advertising; and international advertising. The Law of Advertising also covers competitors' remedies, including thorough discussion of unfair competition, as well as consumers' remedies. In addition, it provides guidance on advertising problems related to specific advertisers, such as attorneys and medical professionals, along with specific methods of advertising, such as internet advertising, telemarketing, and direct marketing.


Advertising,facilities contract,media,advertisers,sole liability clause,Statute of Frauds,death,bankruptcy,remedies


For treatment of the fundamental issues related to the relationship between advertisers and advertising agencies, see Chapter 1.

For coverage of the relationship between the media and advertising agencies, see Chapter 3.

For examination of the liabilities of advertisers, see Chapter 43.

For treatment of the liabilities of advertising agencies, see Chapter 44.

For discussion of the liabilities of media, see Chapter 45.


For exhaustive and authoritative analysis of all the rules of contract law, including all exceptions and variations, see Corbin on Contracts (Matthew Bender).

For expert guidance on negotiating and drafting contracts in the major areas of the entertainment industry, including entertainment software, state-of-the-art forms with contract clauses, instructions on filling out the clauses, and advice on negotiating the proper terms, see Entertainment Industry Contracts (Matthew Bender).

For extensive coverage of a variety of business torts, such as breach of fiduciary duty, unjust dismissal, commercial defamation, deceptive advertising, interference with contract relations, antitrust violations, private RICO actions, intellectual property violations, products liability, liability for environmental impairment, and premises liability, see Business Torts (Matthew Bender).

For expert analysis of specific remedies; examination of litigation costs, economic factors, and other relevant practical considerations for both plaintiffs' and defendants' attorneys; and coverage of specific situations in which the business entity has been damaged, including remedies for breach of contract for the sale or lease of goods, see Commercial Damages: A Guide to Remedies in Business (Matthew Bender).

For a guide to EC competition policy, with thorough discussion of the founding treaty, organization, law, and regulations of the EC, as well as examination of decisions and agreements affecting commerce and economic activity in such areas as pricing and distribution practices, mergers, joint ventures, monopolies, licensing, intellectual property rights, and enforcement and remedies, see Competition Law of the European Community (Matthew Bender).
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