Jim DeLine Discusses Suppliers’ Rights on OESA’s Automotive Insiders Podcast

Jim DeLine discussed the following topics:

Review of Key Contract Terms

• Understanding both party’s rights and duties
• PPAP requirements
• Notice provisions
• Force majeure provisions
• Delivery and payment terms
• When to renegotiate terms
• When delays can be excused

Payments from customers

• Keep current or face risk of preferential transfer claw-back
• Use demands for adequate assurance UCC 2-609
• Suspend credit if customer insolvent UCC 2-702
• No force majeure for nonpayment

Payments to suppliers

• Do not pay on CIA terms
• Pay extra contractual price increases under protest
• Prepare to resource
• Use demands for adequate assurance UCC 2-609

You can listen to the podcast HERE. Please contact a Kerr Russell attorney for questions relating to the information above or other supply chain concerns.

James E. DeLine is chair of Kerr Russell’s automotive industry practice group. He has extensive experience in all phases of state and federal litigation as well as domestic and international arbitration. He regularly represents clients in several areas of law, including contract and UCC matters, automotive supply chain disputes, injunctions, product liability, antitrust, business torts, shareholder rights, creditor’s rights, and appeals. Jim’s successful representation of an international automobile distributor against a global automobile manufacturer received acclaim as one of the largest verdicts in Michigan for 2012.

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