Reference no: EM133377968

1. What are the client/principal's potential claims against the agent given his conduct?

2. What potential claims does the university have against the agent?

3. Discuss the agent's potential violations of the UAAA and any potential penalties

Case Study

For the purposes of this question, assume that the state of Wisconsin adopted the UAAA in its entirety without any modifications and that it was in effect during Will Cheatham's dealings with Bill Jammer.

Will Cheatham was licensed to practice law in both Wisconsin and Illinois and maintained his business office in Chicago. He was not registered as an athlete agent with the Wisconsin Secretary of State's office. Through a mutual acquaintance, Cheatham induced Bill Jammer, University of Wisconsin-Madison's star basketball player, to secretly sign an agent representation agreement with him on December 1 of Jammer's senior year. This agreement was postdated to April 15 of the following year, which was after the college basketball season ended.
The day after UW was selected for the NCAA basketball tournament, the NCAA declared Jammer ineligible for NCAA tournament competition after discovering that he had entered into the agent representation agreement with Cheatham the previous December. The NCAA required UW to forfeit 20 games that Jammer played in after signing this agreement, and the university's resulting losing record caused it to be dropped from the NCAA tournament. UW lost $100,000 in revenues it would have received for participating in a first-round NCAA tournament game, and potentially more revenue that it could have earned by advancing to subsequent rounds of the tournament.

Although he was a projected second-round pick in this year's NBA draft if he performed well in the NCAA tournament, Jammer was not drafted by any NBA team. Jammer signed as a free agent with the Orlando Magic but did not receive a signing bonus. The last player selected in this year's draft received a $350,000 signing bonus. Jammer signed a contract for the upcoming NBA season but received only the minimum annual player salary of $250,000. Cheatham negotiated Jammer's contract but did not request that the Magic pay him a bonus or a higher salary than the NBA minimum. Cheatham was concerned that the Magic's payment of more money to Jammer would leave the club with less available money under the NBA salary cap to pay Michael Swisher, Cheatham's prized client (a client he represents where he is properly certified under Florida law), who was seeking a lucrative free agent deal with the Magic.