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please help with this question. CASE: Echo Clothing Ltd., a new environmentally green line of clothing, has decided to outsource the manufacturing of its new

please help with this question.

CASE:

Echo Clothing Ltd., a new environmentally green line of clothing, has decided to outsource the manufacturing of its new line to a series of garment makers in Bangladesh because the cost is much cheaper per garment than anywhere else in the world. Echo is hoping that its quality of design, environmentally friendly materials, and its price point will enable it to make large supply contracts with large American retailers such as Walmart, Target, and Kohls. Echo Clothing Ltd. enters into a contract with Garment Exporters Inc., a Bangladesh corporation, to source and arrange contracts with a series of manufacturers in Bangladesh.

Everything is going well until the Christmas line of clothing is due to arrive in Vancouver on August 1st. The shipment does not arrive and so Echo Clothing contacts Garment Exporters. It learns that two of the manufacturers hired to make the clothing, Apparel Express and Garb Inc., have suspended operations. This suspension was caused when Bangladeshi authorizes did an inspection of their plants and found that most of the workers were young women under the age of 12. Under Bangladesh law, children working full-time in the garment industry must be at least 14 years of age (U.S. Department of Labor (2012)), so most of the workers were illegal and no longer work for Apparel Express and Garb Inc. This is going to cause Echo Clothing Ltd. major financial problems because this clothing needs to be into the Walmart and Target warehouses by September 30th or it will face major financial penalties under its contracts with these two retailers (not to mention its business reputation damage).

QUESTION:

  1. Briefly describe the legal risk to Echo Clothing Ltd. that is at play in the above-discussed scenario.

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