• Enforcing Transparency in the Supply Chain
  • August 5, 2016 | Author: Regina M. Joseph
  • Law Firm: Shumaker, Loop & Kendrick, LLP - Toledo Office
  • Many manufacturing supply agreements now contain a deceptively simple clause in the concluding boilerplate: Supplier shall comply with Buyer’s Supplier Code of Conduct located at [buyer’s IP address].com. With a sigh, careful readers may look it up, wondering what onerous requirements may be lurking within. Does Buyer demand disclosure of my trade-secret raw materials? Others will shrug it off—the Code only codifies good business practices, and no one is enforcing the audit rights. Still others may wonder whether they, too, should adopt a Code—have I overlooked a new legal mandate? If so, what is really required? Does it need to be twelve pages?