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The business (The Walt Disney Company) decides to up its social media presence by hiring a marketing company. The business and the marketing company enter

  1. The business (The Walt Disney Company) decides to up its social media presence by hiring a marketing company. The business and the marketing company enter into a legal relationship.The marketing company will find social media influencers and negotiate the contracts with the social media influencers on the business' behalf. With reference to course material, how should the business and the marketing company organize their business relationship. Why should they set up their relationship this way? (4 marks)
  • Please note, the answer is not to set-up a whole new business. Instead, there is a distinct way that they can organize their two businesses to work together
  1. The contract the marketing company negotiated on the business' behalf does not reflect the instructions the business gave the marketing company. Explain whether the business has to honour the contract with the social media influencer, and why or why not. (3 marks)
  2. The business is sued by customers alleging false and misleading advertising. But if anyone is at fault for the "false and misleading" advertising it is the social media influencer. Identify and explain what contract clause the business needs in its contract with the social media influencer to reduce or eliminate the business' liability. (4 marks)

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