Legal, business and operational considerations to successfully close transactions.
By: Leslie José Zigel and Javier Feito
With medical and other institutions agitatedly competing against each other for personal protective equipment, organizations have had to go outside their traditional supply chains into uncharted territory. Unfortunately, as demand soars, a murky market has emerged that is populated by popup brokers, speculators, and even fraudsters. Prices for masks, gloves and gowns continuously change, as do shipping costs. Terms for purchasing, shipping and billing are a mishmash of provisions. Brokers and buyers say supplies originating from China are accessible one day, absent the next.
This is just a sample of the “Wild West” world of emergency procurement transpiring over the past months as the state battle for equipment and supplies to protect frontline workers and patients in the battle against COVID-19. There have been many successful PPE procurements, however, there have also been agreements made to buy PPE that have not been consummated.
As of recent, Federal authorities have started assertively pursuing frauds involving N95 masks, targeting forgeries and price gougers, and scrutinizing companies that have failed to deliver on government contracts. Due to the urgent nature of demand, PPE negotiations present additional considerations complimenting issues present at any sales contract. Considerations such as IP related issues, inventory legitimacy, unclear processes, transportation security, etc.
Before contracting with a PPE supplier, distributer or broker, or considering a logistics operation to negotiate PPE, we encourage you to reach out to our team at Greenspoon Marder to conduct due diligence in order to ensure successful transactions. Please reach out to leslie.zigel@gmlaw.com or javier.feito@gmlaw.com for more information.
About Greenspoon Marder Greenspoon Marder is a national full-service business law firm with over 200 attorneys and offices across the United States. We are ranked among American Lawyer ’s Am Law 200, as one of the top law firms in the U.S. since 2015. Our firm was founded with the goal of providing the highest quality legal services at the highest value for our clients. Each of our clients is unique and so are their legal needs. We believe no one size fits all for professional services. Our lawyers offer flexible and creative solutions to meet our clients’ respective needs. Our mission is to understand the challenges our clients face, build collaborative relationships and craft solutions with a focus on strategic goals.
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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.
