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Management Agreements/Unconscionability
A 1989 management agreement between musician Trent Reznor and his manager John Malm wasn't unconscionable, a Manhattan federal district court decided. Reznor v. J. Artist Management Inc., 04 Civ. 3808. Malm, who was a part-time music promoter in Cleveland, where Reznor's career was launched, began managing Reznor in the 1980s. After Reznor's group, Nine Inch Nails, signed a recording contract with TVT, Malm retained attorney Michael Toorock, who he had hired to represent Reznor's interest in the recording contract negotiations, to prepare a written management agreement. Toorock then used a management agreement for another client to which he added material terms supplied by Malm, including a 5-year term and commission rate, so that Malm and Reznor “could see what a management agreement looked like” (though Toorock claimed he didn't intend to represent either party as negotiations progressed). Reznor subsequently signed the agreement when Malm presented it to him.
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