What are approval rights?

• A. The right to approve union contracts
• B. The right to approve residuals
• C. The right to approve a screenplay's final draft by writer only
• D. The right to designate or approve certain aspects of the production

Answer: (D)

Approval rights are contractual powers that let a party—often a studio, financier, or producer—designate or veto specific elements of a project before they move forward. They’re there to protect the investment and ensure the project meets certain standards. These rights can apply to many parts of production, such as approving the script (including major rewrites or the final draft), the budget, casting choices, the director, filming locations, and even post-production decisions like the final cut or music. The core idea is that the holder can approve or reject certain production aspects, giving them a say in how the project is developed and presented.

The other options don’t fit as well: approving union contracts is a labor/contracting issue, not a general approval right over production elements; residuals are compensation, not approvals; and while some agreements include script approval, it’s typically not limited to the writer alone—approval rights generally involve the producer or studio, not just one writer.