Unit 6_LS311_Discussion response

13519Respond or elaborate on the response below:

iHiker seems to be in a pretty tough situation. They previously signed a contract to sponsor the USA Climbing team at the Olympics to help promote their software. It was supposed to give them great publicity. Unfortunately, the Olympics now got moved to a country that’s getting a lot of backlash for issues involving human rights, like how they treat women and certain ethnic groups. Because of that, people are now saying companies should pull out. If iHiker wishes to cancel the deal, they might be able to use something called “frustration of purpose.” That would mean the whole reason they signed the contract no longer applies anymore because of everything going on. They could also make an argument for impracticability, which simply means it’s no longer reasonable to stay in the deal, due to things changing in a big way that they couldn’t have seen coming. These defenses don’t always work thought, and it really depends on what the contract actually says. If they stay in the contract, they won’t get sued or have to pay any penalties. But the risk is that people might think iHiker supports what’s going on in that country, and that could really hurt their image. Customers might stop supporting the brand, and that could lead to even bigger problems in the long run. I think iHiker should really go through the contract with a fine tooth comb, and look for any parts that could help them leave the deal legally. Maybe there’s something about morals or reputation. If there’s no way out, then they should stay in but speak up. They can make a statement saying they support the athletes but not the actions of the host country. They could also do something positive, like support human rights causes, to show people where they really stand. That way, they stick to the contract but still do the right thing.