Arbitration and Mediation for Business: Is It Working Automotive Supplier Disputes

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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• Dirk Tischer
• Assistant General Counsel
• Lear Corporation
• 21557 Telegraph Road
• Southfield, MI 48034
• [phone]

The following slides and presentation represent
my own opinions and approach, not necessarily
the view of Lear Corporation.
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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• Automotive Industry Background
• Tiered Supply Chain
• Just-in-Time ("JIT") Production
• Risks of Plant Shutdowns
• Rising Raw Materials Costs

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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• Supplier Litigation
• Contract Dispute under the UCC
• Bankrupt Supplier Issues?
• Past Supplier or Current Supplier?
• Current Supplier Refusals to Ship
• Current Supplier Refusals to Release Tools

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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• Current Supplier Refusals to Ship
• Demands for Accommodations
• Shortened Payment Terms
• Increased Prices
• Long Term Commitments
• Waivers of Offsets
• Injunction v. Moving Production
• Interaction with Arbitration?

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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• Current Supplier Refusals to Release Tools
• Demands for Accommodations
• Hostage Payments
• Replevin Action
• Interaction with Arbitration?

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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• The Decision to Arbitrate

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Arbitration and Mediation for Business Is It
Working?Automotive Supplier Disputes

• Drafting Suggestions
• If you include an Arbitration Provision also
• Consider including a Jury Waiver?
• Consider a confidentiality provision?
• Consider whether you want to require that the
  arbitrators have specific experience or
  background?
• Consider adding a provision to address equitable
  relief?
• Consider the number of arbitrators?