Ethics Case 6.1 American Broadcasting Company Merchandising, Inc., a subsidiary of American Broadcasting Company, Inc. (collectively, ABC), entered into a written contract with model Cheryl Tiegs whereby ABC would pay Tiegs $400,000 per year for the right to be the exclusive agent to license the merchandising of goods under her name. When ABC was unsuccessful in attracting licensing arrangements for Tiegs, a representative of ABC contacted Paul Sklar, who had previous experience in marketing apparel and licensing labels. Sklar enlisted the help of Mark Blye, and together they introduced ABC and Tiegs to Sears, Roebuck and Company (Sears). This introduction led to an agreement among Sears, ABC, and Tiegs whereby Sears marketed a line of “Cheryl Tiegs” female apparel through Sears department stores and catalog sales. Blye and Sklar sued ABC for a finder’s fee for introducing ABC to Sears. Because there was no express written or oral contract among ABC and Blye and Sklar, they alleged there was an implied-in-fact contract between the parties.

Section 5 - 701 (a)(10) of the New York Statute of Frauds requires a finder’s fee contract of the type in this case to be in writing. Who wins? Did ABC act ethically in this case? Blye v. American Broad. Co. Merch., Inc. , 476 N.Y.S.2d 874 (App. Div. 1984).