Target is looking to launch its first store in Kuwait. Kuwaiti law prohibits foreign companies from being majority owner of businesses in Kuwait, so Target is looking to partner with a Kuwaiti owned business. They hire Um Alaish, a Kuwaiti firm to help look for partners, scout locations for stores, and help obtain permits for the business. Um Alaish was founded by a relative of the royal family that controls most of the governmental decisions and has assured Target that they are well positioned to help them find the right partner and avoid problems. Target has agreed, but the contract calls for Um Alaish to consult with Target on all major decisions and that Target has final say.

Target agrees to partner with Al-Mulla Group. They agree to license Al-Mulla the right to use the Target trademark for purposes of launching and promoting the store. However, they have told Al-Mulla that they are not allowed to use the trademark or name for e-commerce or online sales. They also sell them large quantities of Target Brand products for well below cost so that they can offer discounts early on and attract customers away from existing brands. They have told Al-Mulla that they cannot sell these products outside of Kuwait.

Target is very excited about the merger. The Kuwaiti Dinar is one of the most valuable currencies in the world, and each Dinar is worth almost $3 US. But the value of the Kuwaiti Dinar is almost entirely tied to the price of oil, Kuwait's largest export. Target fears that the price of oil in the next five years will plummet, with the increase in working from home and electric cars. They are also concerned that the Kuwaiti Government could seize their property if they lose significant revenue from the oil industry. Would Target be liable for the actions taken by Um Alaish as part of the agreement?

1. Is it ok for Target to pay Um Alaish to help procure government licenses?
2. Can Target limit Al-Mulla's right to use the trademark online?
3. If Al-Mulla sells Target's branded products to a third party who sells them online, can Target stop them from being sold in America for less money?
4. How can Target protect itself against fluctuations in the Kuwaiti Dinar?
5. Could the Kuwaiti Government seize Target's property?