Last year, eHarbour signed a contract with the United States Olympic Committee and US Sailing, the National Governing Body for the sport of sailing, to sponsor the US Sailing team in the upcoming Olympics. The marketing team hoped that sponsoring sailing at the Olympics would be good publicity to promote eHarbour software. Unfortunately, the venue for the Olympic Games had to be moved to a country that is now known for multiple human rights violations, including treatment of women and certain ethnic groups. There is now a lot of bad publicity with the upcoming Olympics. There have been articles appearing in newspapers and magazines demanding that corporate sponsors pull out from the upcoming Olympics. Some members of Congress have called for sponsors to withdraw sponsorship of the Olympics. Discuss whether eHarbour can withdraw sponsorship from the Olympics without violating its existing contract with the United States Olympic Committee and US Sailing. What defenses could eHarbour assert in a breach of contract case? What are the consequences if eHarbour decides not to withdraw its sponsorship? What recommendation would you give?
Last year, eHarbour signed a contract with the United States Olympic Committee and US Sailing, the National Governing Body for the sport of sailing, to sponsor the US Sailing team in the upcoming Olympics. The marketing team hoped that sponsoring sailing at the Olympics would be good publicity to promote eHarbour software. Unfortunately, the venue for the Olympic Games had to be moved to a country that is now known for multiple human rights violations, including treatment of women and certain ethnic groups. There is now a lot of bad publicity with the upcoming Olympics. There have been articles appearing in newspapers and magazines demanding that corporate sponsors pull out from the upcoming Olympics. Some members of Congress have called for sponsors to withdraw sponsorship of the Olympics. Discuss whether eHarbour can withdraw sponsorship from the Olympics without violating its existing contract with the United States Olympic Committee and US Sailing. What defenses could eHarbour assert in a breach of contract case? What are the consequences if eHarbour decides not to withdraw its sponsorship? What recommendation would you give?
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