Manufacturers may have little control over the changes initiated by the Biden administration to the merger and non-merger enforcement policies discussed above. However, an effective antitrust compliance program can really pay off by exposing and deterring antitrust behavior. While the DOJ has not recognized antitrust compliance programs in the past when ruling on charges and sentencing recommendations, it announced changes to both guidelines in July 2019. These changes increase the legal value of implementing an effective antitrust compliance program. D. Transfer of risk to freight costs — For many businesses, freight costs have become extremely important over the past two years, both due to the increased need for expedited freight and the rapidly increasing costs (and delays) for normal shipping. Traditionally, many buyers have treated most shipping costs, including the cost of expedited freight (even in cases of force majeure and commercial impracticability) and the costs of shipping components from subordinate companies, as something for which their suppliers are responsible. However, many companies question this structure and push it back. Many companies are struggling with increased shipping costs, especially those that need to source components from Asia. As we saw above in terms of price and costs in general, companies should look for ways to share some of the burden and risk of these costs with their customers. Many companies have also faced the need for frequent (and during some periods almost constant) expedited freight to compensate for delays in the supply chain.
As most companies know, the cost of expedited freight can quickly become exorbitant and threaten to exceed their profit margins for a program for a full year or even longer. In recent years, buyers and sellers have treated the cost of expedited freight as a zero-sum game, with buyers requiring their suppliers to bear the full cost of expedited freight, and suppliers often reluctant to pay such costs (even if they are otherwise required to do so under the applicable contract/law). Since supply chain challenges show no signs of imminent relief, companies should consider possible new approaches where buyers and sellers each share some of the risk of freight acceleration stemming from issues beyond their control. Government regulation of property insurance is generally not considered a hot topic, but it will be in 2022. In 2021, the United States experienced a wave of disasters that caused immense property damage and loss of life, including epic wildfires in the West, one of the most active hurricane seasons on record, and an unprecedented tornado outbreak in the Mid-South. 2022 is unlikely to be a different year – perhaps worse – as climate change, changes in the physical environment and other factors increase the risk of harm to people, their homes and businesses. The main source of funding for post-disaster reconstruction is insurance such as home insurance, and the growing scale of disasters poses challenges for insurance companies and the government agencies that regulate them. As claim costs have risen and competition for customers has intensified, insurers have increased premiums, restricted coverage, and even abandoned policyholders. These measures have created significant “protection gaps” for owners and businesses; The legislator reacted by prescribing coverage and controlling tariffs. In 2022, we expect to see more coverage litigation, intense debates about what kind of regulation to impose, the proliferation of new insurance models, and efforts to better inform consumers about what insurance they need and how to buy it. Lawmatics, a leading platform for managing legal relationships with customers, has been named “Hot Product” in the TechnoLawyer Buyer`s Guide 2022.
TechnoLawyer continues to report on the latest developments in legal technology and law firm management; The release cites Lawmatics` versatile automation capabilities as a particularly important feature that sets the platform apart. 2 Dissenting statement by Commissioners Noah Joshua Phillips and Christine S. Wilson on the release of eight omnibus resolutions, U.S. Federal Trade Commission, September 14, 2021, www.ftc.gov/system/files/documents/public_statements/1596256/p859900njpcswomnibusdissent.pdf (last accessed May 25, 2022). 19 `For all products regulated by the CPSC, the Commission issues a letter of non-compliance in the event of a breach of a mandatory standard. It informs the Company of the violation and the nature of the corrective measures required (to correct future production (CFP); to stop sales and PFMs; or to recall, stop sales and CFP). www.cpsc.gov/es/Data. Many of the certainties that companies have become accustomed to over the past decade have been shaken, and there are a number of issues over which companies have absolutely no control. In this article, we offer companies a way to engage in international manufacturing in an ever-changing world. ESG, PSPC and Proxies – 2022 Forecast for SEC Action The global supply chain has changed and manufacturers must adapt to new circumstances.
The challenges facing manufacturers in 2021 have continued into 2022, and many show no signs of weakening. If manufacturers have learned anything from the past 18 months, it`s to expect the unexpected and apply the “lessons learned” to meet the challenges of the future. These challenges will require companies to re-evaluate many of their contracts and operations, including their approach to managing risks associated with pricing, warehousing and transportation costs. Greater volatility in the supply chain requires contracts to be more flexible to allow for a folding approach but not to break to solve challenges as they arise. The importance of monitoring the supply chain for potential forced labor is reinforced by new legislation that comes into effect on June 21, 2022, banning the import of all goods made in whole or in part from goods from China`s Xinjiang Uyghur Autonomous Region (“XUAR”). This is done in accordance with the Uyghur Law on the Prevention of Forced Labor (UFLPA), which considers all goods extracted, produced or manufactured in Xinjiang to be produced by forced labor. Katten Muchin Rosenman LLP was recognized as the best onshore law firm for hedge fund client services in the United States at the 2022 HFM US Services Awards. The winners were selected by a panel of hedge fund CHIEF operating officers, as well as CFOs and General Counsel. Wendy Cohen and Allison Yacker, co-chairs of the firm`s investment and fund management practice, accepted the award on behalf of the company. In addition to the ongoing challenges posed by COVID-19 and the existing shortage of materials, many manufacturers are now grappling with the effects of the war in Ukraine. Companies operating in Ukraine are facing the obvious and significant disruptions resulting from an ongoing armed conflict.
Companies operating in Russia or whose customer base or supply chain is linked to Russia have struggled to comply with legal and ethical barriers to pursuing such relationships, including the ever-growing list of sanctions. Even companies whose activities are not directly related to Ukraine or Russia are affected, as war and sanctions affect both the prices and availability of many raw materials, including, for example, energy, wheat, neon and aluminum. These disruptions and bottlenecks (and the next disruption around the corner) are likely to continue to cause headaches and financial uncertainty for manufacturers, resulting in further increased costs. Crypto legislation could go beyond talking in 2022 To get started, make a list of the 20 biggest suppliers in your business and organize them by location, the type of goods they deliver to you, and the cost. Next, create a basic but reasonable risk heat map that assesses the likelihood of a human rights violation and the negative effects such a violation could have on the business. This allows you to identify suppliers who may expose your company to legal liability or reputational damage related to human rights violations. The factors described below are a good place to start, although others may be relevant depending on the nature of your business. Steve Adamczyk, Partner at Varnum LLP, has been included in the Gulfshore Business 40 Under 40 2022. This magazine seeks to honor young lawyers from the Southwest Florida region who have helped the region through volunteerism and philanthropy. Mr.
Adamczyk has served on the Board of Directors of the South Gulf Coast Florida Chapter in Heartland of the American Red Cross since 2015. He also supported local elected officials and long-term reconstruction efforts after Hurricane Irma.
