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Monthly Minute | Global Supply Chain Issues
In a court opinion that borrowed at length from the infamous “My father made him an offer he couldn’t refuse” scene from The Godfather, Warner’s client AirBoss Flexible Products prevailed in a high-profile supply chain...more
Over the past two years, federal and state courts have issued a series of decisions with important implications for supply chain contracts. Most notably, the appellate courts in the AirBoss and Higuchi cases provided guidance...more
Relying on a recent Michigan Supreme Court opinion, the Sixth Circuit Court of Appeals recently reversed a preliminary injunction requiring an auto supplier to supply products, holding that the parties’ purchase order...more
Automotive supply contracts usually involve either the sale of goods or the provision of services. For that reason, determining what law applies to such contracts is often pretty simple — the Uniform Commercial Code (UCC)...more
MIECO LLC v. Pioneer Nat. Res. USA, Inc. - May a seller of energy invoke force majeure to excuse its non-performance under a delivery contract – a contract that obligates the seller to deliver a particular quantity of...more
When negotiating supply contracts, the logistics of possible future litigation may not be top of mind. No one wants to talk about the details of their divorce while they are still in the honeymoon stage. And while the topic...more
With market volatility and supply chain constraints at record levels, manufacturers find themselves in unfamiliar territory with their supply base. As a consequence, manufacturers may need to protect production and reduce...more
Customers and suppliers may not willingly admit they are in distress, even when sources of economic pressure can be found everywhere. However, there are some practical steps you can take to increase your situational...more
With the COVID-19 pandemic, many industries experienced a major shift in how the personnel of key suppliers worked, with “nonessential” personnel in large part working remotely. When this shift to remote work first happened...more
It’s Friday at 3:00 p.m. at ABC Corp., and Mike from purchasing enters your office, slumping into his chair with a heavy sigh. Prime resin is in short supply. The next delivery will be weeks late, only half your order can be...more
Your company has just been awarded its biggest contract ever and everyone in the sales department is joyously high-fiving each other. This contract for clips will put the company on a whole new growth trajectory now that Air...more
WHAT YOU NEED TO KNOW IN A MINUTE OR LESS - The COVID-19 pandemic has disrupted supply chains around the world requiring many companies to adjust operations and their business. Supply chain litigation has not erupted as...more
Q2 2020 saw a tangible increase in the number of queries from clients asking about the enforceability of take or pay clauses common in supply agreements. Intermingled with questions around force majeure, the key issue appears...more
When trying to understand the full impact of COVID-19 on existing contractual obligations, parties will likely first consult force majeure provisions in their contracts to assess their rights or liabilities for continued...more
This Katten advisory considers how UK businesses could seek to rely on the principles of force majeure or frustration to suspend or end performance of contractual obligations (without liability) should that be required in...more
We are living in uncertain times as the effects of the COVID-19 virus pandemic and resulting governmental restrictions on economic activity and daily life take hold. Not surprisingly, many businesses are facing key decisions...more
There is increased pressure by federal, state and local governments to minimize gatherings. Many businesses encourage telecommuting in situations such as this. However, that is not feasible on a construction project....more
Email overload on whether the new coronavirus, COVID-19, triggers a force majeure clause? Whether you're considering a claim, worried about receiving one or busy drafting following the outbreak, here's our 10-point,...more
The global outbreak of the novel coronavirus COVID-19 is having profound implications for businesses all over the world. A Hogan Lovells team of corporate and commercial lawyers from the United Kingdom, United States, and...more
The coronavirus (COVID-19) pandemic continues to have a devastating impact on human health, life and economic activity around the world. The virus has caused severe disruptions to the global economy, including the banning of...more
Whether you cannot meet your supply obligations because your supply chain has come to a screeching halt or you are losing income because conferences, sports, or cultural events are cancelled and your contract partners do not...more
With the international spread of the coronavirus and the impact it is having on the supply chains, production, transport, and workforce of commercial entities, as well as the limitations posed for service providers of all...more
Following the rapid spread of the novel coronavirus (“COVID-19”) that was first reported in Wuhan, China at the end of 2019, the World Health Organization declared COVID-19 to be a pandemic on March 11, 2020....more
Generally speaking, entities that enter into contracts are bound to perform them. However, as matters evolve, the impacts of natural and man-made problems arising from the coronavirus (COVID-19) are being felt by customers,...more
Covid-19 has caused serious disruption to manufacturers’ ability to produce products and fill orders on a timely basis, which in turn has impeded the performance of countless supply chains....more