Kardashian Kard Woes Kontinue: Kontract Breached?

Posted January 19, 2011 in Uncategorized by Arthur Buono

Measure twice, cut once. The old carpentry saw (yes) applies with equal force to business schemes. The Dash Dolls got a ton of bad press for sponsoring a fee-laden debit card. Now they’re being sued for backing out of the deal.

  • Kardashian business sued for breach of contract in debit card fiasco
  • Card’s creator seeking millions in damages
  • What could go wrong? Plenty
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Getting Out of a Dumb Business Deal Not So Easy

When the Connecticut Attorney General said he’d investigate the Kardashian card, the ladies decided to retreat, not reload. They withdrew their endorsement of the deal. I faulted them for poor business advice, but gave kudos to their lawyer for leaving them an out.

We shall see. The card’s creator – an outfit called Revenue Resource Group LLC* – claims there was nothing wrong with the card or its fee structure. It says the Kardashians had no grounds for backing out, and owe millions of dollars in damages.

The lesson here is a good lawyer can’t overcome a stupid business plan. And a vaguely worded contract is an invitation to a lawsuit. The Kardashians’ escape hatch will be tested, and if there’s any doubt it works, it could cost them quite a bit to settle this claim.

* It kind of makes you wonder, just who or what the heck is "Revenue Resource Group LLC"? Or for that matter who are Mobe, Inc., TransCard LLC, and Mobile Resources Card, and why does it take all of these businesses in addition to University National Bank, Sunrise Community Banks, MasterCard and the Kardashians to take your money and make less of it available to you in the form of plastic? No wonder it’s not a great deal for consumers, after everybody takes their cut.
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