Legal Question in Business Law in Iowa

If a company has a contract with a supplier in a South American country. If the American company finds out the supplier is not in compliance (i.e. child labor, unsafe working conditions, and low pay) with the international labor standards, what is the best way to get out of the contract?

Asked on 9/12/13, 9:05 am

1 Answer from Attorneys

Robert Luedeman solo practitioner

One would hope that there is a termination clause written into the contract for just such eventualities, but otherwise if they're involved in something that's illegal that would be another way. Understand if you breach a legal contract although it might not pass the politically correct sniff test, you may not be able to do business thereafter in that country. Without seeing the contract it is hard to be more specific.

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Answered on 9/12/13, 8:18 pm


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