Yeah but say you are going to hire someone to mow your lawn. This person is on the local news, several stations, for allegidly raping a small girl.
The community is in an outrage. You hired him to mow your lawn, but you don't want him and his truck with his face on the side of the truck/van parked in front of your house. Sure you aren't guilty, sure he hasn't been proven guilty, but in the public eye, he's shunned, and by being affiliated with him, you as well might get shunned.
So instead of hiring him, you hire a lawn service completely different, for the purpose of not having to worry about your lawn getting mowed and neighbors/community shunning you. This is better than having a lawn service and your name being affiliated in a negative way.
Your angle is more about laws, where as this situation is more about a termable contract.