Draw the Law: Informed Consent Form

For the past several Draw the Law posts I have toured marketing, licensing, and nondisclosure agreements.  These are many of the typical forms you will see all-types of businesses use.  Today, as I have done with my photographer friends regarding rights of publicity and releases, I will do a couple explanatory posts for my friends who work in the fitness industry with regard to informed consent and waiver forms, and their use in dealing with risks and lawsuits.

What’s the Context We Use these Forms in?

Whenever a client or customer gets injured under your watch as a businessperson you have that aching fear of a pending lawsuit.

All businesses carry some kind of risks with them.  Sometimes the risk is monetary (as with the financial sector) other times it is bodily, such as with the fitness and health industry.  As I am sure any fitness instructor can tell you, many people receive an exercise-related injury at some point if they workout frequently.  Among those hurt by the exercising, some of them may consider a lawsuit against the trainer and the club they work for because in their mind they feel they are the ones responsible for the injury.  On the other side one of the goals of any business is to reduce costs and one way to reduce costs is to mitigate or control risk.  In case of a personal trainer or a fitness club, it is the risk of a lawsuit by an injured client or patron.

Enter the Informed Consent Form

The informed consent form describes to the signer that with this certain activity, that they are voluntarily taking part of has certain risks that come with the activity, and that by signing the form they acknowledge and understand that fact.

So for those who participate in fitness club activities, for example Turbo Kickboxing, there are risks associated with the activity, such as landing on your foot funny, getting a bruise from a stray kick, or falling down (because you find your instructor hilarious, ok this part is completely a joke).  These are called inherent risks.  However, let’s say you are a new client trying a completely new exercise routine?  Would you know what are inherent risks?

No. This is where the informed consent form tells the client what the risks are with the activity.  Why do we want that?  Without getting into too much legalese, if a client signs an informed consent form they are stating that they assume a risk and acknowledge the potential for getting hurt.  This is key because it provides the personal trainer or club with the assumption-of-the-risk defense in court because they will enter it into evidence.  Basically, assumption of the risk is as it sounds, by  understanding everything that is written in the form they assume those risks.  Therefore, an informed consent form should contain the following:

  • Wording that IDs the risks that could occur;
  • the consequences of what could happen to the person if those risks did occur (for example, the possibility of dying); and
  • if the client is still unclear on the risks, a notation on the document that the personal trainer verbally clarified in advance the questions that client had.*

*Note that this act will not prevent a lawsuit. It merely creates evidence of assumption of the risk.

Is this a Type of Contract?

Under the informed consent form information is exchanged for the understanding that the participant will assume the risk given that information, thus informed consent is a contact.

You are probably getting sick of seeing this, as I say it over and over on this blog and in-person.  However, remember the document is just that, a piece of paper.  A contract is more than just paper. It is a promise for a promise.  In this case, the document embodies the agreement, which is that between the two parties (fitness trainer and client) that all the necessary information was included and that the client hereby assumes the risk, which was disclosed.   If you need a refresh of consideration you can click back at the older Draw the Law posts.

If this is a Contract can Minors Enter it?

Remember minors cannot contract, they lack capacity, so all you can do with an informed consent form is to inform the guardian of the risks and have them agree to participate, which is still admissible evidence.

Good question, and remember in a prior post that only adults have capacity to enter contracts, children lack capacity to give consent to be bound in contract.  With that being said, many times for instructors that deal with children they have the guardian sign an agreement to participate, which amounts to a permission slip.  With that being said, it can still be used as evidence.

Does this Form Help the Instructor or Club Avoid Liability?

No, unless it contains what is known as an exculpatory clause.  Basically, the claim people often make in court, when they are injured (whether it be monetarily or bodily), is negligence.  This is the injured client basically stating that the trainer or club did (or did not do something) that a reasonable person would have done in the same situation and because of that they got injured.   To combat claims based on that argument, attorneys that draft agreements will use an exculpatory clause, which would then make the document a waiver, which I will discuss next week.

Last Word

Informed Consent Forms are not limited to the fitness and healthy industry, but you can see how they are readily applicable to those fields.  In general in situations where there is a service provider that has people following their instruction and there are inherent risks of bodily or monetary harm due to participating in the activity you will see the service provider usually having people sign an informed consent form among the papers they hand them before providing the service.

Sometimes, these forms may be incomplete or the employee of the organization has not been properly trained to deal with questions that arise on these forms.  In general, an attorney can help you with those matters.

Stay healthy and fit this week, and see you next week!

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

Posted in Draw the Law | Tagged , , , , | Leave a comment

Draw the Law: Nondisclosure Agreements

Pardon the Delay and IP Law Talk this Week

Hey everyone, I am sorry that this Draw the Law was delayed by a week.  Like many things in the legal world situations develop that require an attorney’s attention and in my mind clients do come first, as much as I love doodling stick figures. Before I get into the post that I was supposed to do last week, please be reminded that I will be having an IP Law Talk tomorrow night, Wednesday, May 23rd.  I will be discussing intellectual property matters (copyright, trademark, and trade secrets) for small business and startup owners seeking to protect their content and brand in this increasingly connected hypercompetitive world.  So here is the information for that event:

  • When: Tomorrow, May 23rd  (Wednesday)
  • Where: The Greenhouse Innovation Hub (685 Auahi Street)
  • Time: 6:00 – 7:00 p.m.
  • Price: $20.00 will get you in for the 45-min talk, discussion period, and the presentation and materials

Please consider coming to check it out if you are a marketer, small business owner, or someone who uses the web frequently to showcase your brand and identity. Click here for further info and reserve your spot.

Today’s Draw the Law: Nondisclosure Agreements

This subject is tied into tomorrow’s talk due to the fact it deals with NDAs and their usage to protect trade secrets.

What is a Nondisclosure Agreement?

Whenever you have that sinking feeling that this other person could use this information and give it to my competitors, you may consider using a NDA.

Nondisclosure Agreements (NDAs) is a contract where the parties agree to protect a trade secret or confidential information.  Often the “Discloser” will give valuable information to the “Recipient” in order to achieve some business objective. They are frequently used in startups who have come up with a novel business method or possibly a patentable invention, by businesses that rely on consultants and independent contractors who see sensitive information, and for executives that sign have access to confidential business information.

What is a Trade Secret?

I just want to touch a little bit on what constitutes a trade secret.  It is information that has economic value by the virtue of it not being generally known AND is the subject of reasonable efforts to maintain secrecy.

Trade secret = information + economic value + generally unknown + reasonable secretive efforts

Without those four things, it is NOT a trade secret.  One of the most famous trade secrets is Coca-Cola’s recipe, which has generated a great amount of fascinating articles and discussion.  Here is a couple for you to read at your leisure:

When is a Mutual NDA Appropriate?

Sometimes collaboration is a great thing for two companies, BUT if it involves secret core technologies or information both sides can use a mutual NDA to protect themselves while still working jointly.

More often than not, there is generally one side disclosing information and the other’s expertise or ability to do something with that information is being sought.  So in that case the flow of information is one-sided.  However, in many joint ventures, one company has a piece of useful technology and the other side also has a useful piece of technology.  If the companies share these technologies (they will form a super-awesome robot! Sorry, little geek humor there) both stand to gain from the partnership.  In this case, a mutual NDA would be appropriate because they are sharing secrets together in their collaboration.

For my friends who are marketers, a mutual is also useful, let’s say you have a marketing method that is golden and your client company wants to give you sensitive information or access to their database that dovetails with your method to launch a great marketing campaign.  In this instance, both sides would use a mutual NDA.

What Can I do if the Recipient Violates my NDA?

So the discloser (in the black) can go after the recipient (in blue) for violating the NDA. In addition, they may be able to stop the 3rd party competitor (in green) from making use and money off the violation.

Well, it depends. First you will probably want to review the contract. Often times, contract attorneys will put some form of damages.  In addition, typically the Discloser will probably ask a court to make the violator stop disclosing and possibly file a suit against the third-party who the Recipient tipped off to have them stop making use of the trade secret, and also possibly give up monies they made off of violating the trade secret.

Final Word: Drafting a NDA

If you are giving valuable information to a key person, you may consider having them sign a NDA first, before giving them access to that information.

Due to the sensitivity of trade secrets, you want to have an attorney work with you extensively to identify some aspects you want protected and to go over certain provisions. Consider the following:

  1. Define the confidential information that you are protecting (including what is not confidential information);
  2. Describe the duties and obligations of the Recipient; and
  3. Miscellaneous provisions, such as time, jurisdiction, and dispute resolution.

You businesspeople know that some of the information in your head can make you money, and sometimes copyright, trademark, and patent protection will only go so far.  Those are times that you may ask yourself who knows about your information, what can they do with it, and if the information is widespread do you lose your competitive edge? At that point consider a NDA.

See you next week!


*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

Posted in Draw the Law | Tagged , , , , | Leave a comment

Draw the Law Delayed

Hey everyone Draw the Law will be delayed slightly today.  It will discuss the use of nondisclosure agreements, as we continue our tour of commonly used agreements by startups or small businesses. In the mean time, check out my event next week (which will also be discussing NDAs).

You can sign-up by clicking the link.

Brand and Content Protection: Insight on Copyright, Trademark, and Trade Secrets Law

All successful businesses nowadays need to produce their own content and manage a unique brand or they will be lost in the noise of the Internet.  With the certain interests pushing bills like SOPA and court cases pending regarding ownership of intellectual property it is best for business owners to understand the law of copyright, trademarks, and trade secrets.  Learn how the law does (or doesn’t) protect your work and ideas.

We will discuss creating your content and brand, what registering copyright and trademark does for you, and some strategies for managing and protecting, such as licensing, those important creative assets that make your business unique.  Lastly, we will end with an open discussion with where the law might be heading.

  • Date: May, 23rd (Wednesday) 
  • Time: 6:00 p.m. – 7:00 p.m.; 45 minute presentation with 15 minutes for Q&A
  • Place: The Greenhouse Innovation Hub, 685 Auahi Street
  • Price: $20.00 – materials and samples included

Check back later today for Draw the Law. Have a good morning!

Posted in Uncategorized | Tagged , | Leave a comment