Sarah Rathke

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Are You An Essential Business?

This week, we anticipate that states and municipalities will likely issue a number of “stay-at-home orders” that will require the temporary closure of businesses not deemed “essential.”  Ohio just put such an order in place, for example.  Unfortunately, to date, the direction to stay at home is not being directed by the federal government or … Continue Reading

Restructuring Protections In A Time Of Coronavirus

“The problem in public life is learning to overcome terror…” ― Gabriel García Márquez, Love in the Time of Cholera There is significant information circulating about how businesses should respond to COVID-19 and overcome the fear and uncertainty about the virus and what comes next. It is easy to find articles about important matters regarding how to … Continue Reading

Coronavirus and US Litigation Involving Multinational Corporations

The globalization of business, combined with the rapid spread of the coronavirus disease 2019 (COVID-19), commonly referred to as the “coronavirus,” renders multinational corporations highly susceptible to litigation in US courts. US companies that have been damaged by COVID-19 issues will likely seek redress through litigation, and foreign businesses operating in the US must be … Continue Reading

Federal Focus on Forced Labor in Xinjiang: Supply Chain Risks

There have been longstanding tensions in the Xinjiang province of China between the Chinese government and the Uyghurs, a predominately Muslim ethnic group.  The UN estimates that there are more than 1 million Uyghurs in detention camps, and there are reports of pervasive surveillance, wide-spread forced-labor, and “re-education” programs.  These human rights abuses present significant … Continue Reading

Supply Chain Decision: Online Marketplaces At Risk Due To Federal Court Ruling in Oberdorf v. Amazon.com Inc.

On July 3, the Third Circuit Court of Appeals reversed a lower district court decision and held that Amazon can be liable as a “seller” for defective products sold by third parties on its online marketplace. This holding, if applied broadly, exposes companies that maintain third-party vendor platforms to strict liability lawsuits for defective products … Continue Reading

President Trump Signs Memo Focused on Combating Counterfeit Goods, Impacting Supply Chains

On April 3, President Trump signed a memorandum calling for the Department of Homeland Security to prepare a report with recommendations to prevent the trafficking and sale of counterfeit goods in the American marketplace. The Department of Homeland Security is to work with the Commerce Department, the attorney general, and other federal agencies to prepare … Continue Reading

When Politics Affects Supply Chains

According to recent WSJ reporting , immigration issues at the Mexico-US border are disrupting commercial trade, as US Customs and Border Patrol agents who typically handle trade traffic have been redirected to migrant issues. This redistribution of resources has reportedly caused a pile up of truck traffic and delay of inspections for agricultural and automotive components. … Continue Reading

Quoted in Bloomberg Law: Human Trafficking Case Could Lead to Expanded Supply Chain Liability

In Ratha v. Phatthana Seafood Co. Ltd., Cambodian plaintiffs sued various companies under the Trafficking Victims Protection and Reauthorization Act (TVPRA), alleging that the companies benefitted from human trafficking in the shrimp and seafood industries in Thailand. A California district court found that the claims against certain defendants failed because those companies did not knowingly participate in or benefit from human trafficking; that decision is now on … Continue Reading

2018 US Midterm Elections Overview

As the past few years have made very clear, political issues have the potential to impact supply chains.  Squire Patton Boggs’ Public Policy Practice has created a 30-day outlook for the upcoming US Midterm Elections. The overview—which includes updated polling, party funding comparisons, and a discussion of races that are considered “toss ups”—is now live … Continue Reading

Force Majeure in a Tight Labor Market

2018 has produced a tight labor market for many manufacturers.  Particularly in the electronics, aerospace, and trucking/automotive sectors, skilled laborers are becoming increasingly difficult to find.  As a consequence, many manufacturers are finding themselves in a position where they are unable to perform contracts that have any degree of complexity without a level of scrap … Continue Reading

Quoted in Corporate Counsel: Lessons from Hobby Lobby's Settlement

Earlier this month, nationwide arts-and-crafts retailer Hobby Lobby settled with U.S. Department of Justice over allegations of smuggling cultural artifacts from Iraq.  As part of the settlement, Hobby Lobby consented to forfeiture of the artifacts and payment of $3 million.  Hobby Lobby also agreed to adopt internal policies and procedures governing its importation and purchase of cultural … Continue Reading

The Far-Reaching Reach of REACH; Global Supply Chain Impacts

Last week, we reported on the Restriction of Hazardous Substances Directive (RoHS) in the EU, which took effect in 2006 and restricts the use of toxic chemicals in electronics products.  Although RoHS is an EU directive, we discussed that it has extraterritorial impacts on global supply chains in that the legislation requires electronics manufacturers to … Continue Reading

Monitoring the Electronics Supply Chain under RoHS

The Restriction of Hazardous Substances Directive (RoHS) (2002/95/EC and 2011/65/EU) was adopted by the European Union in February 2002, and took effect July 1, 2006, yet many in the electronics industry are still uncertain as to its scope and requirements.  Sometimes called the “lead-free directive,” the purpose of RoHS is to reduce toxic electronic waste … Continue Reading

Infrastructure Watch: The Impact of Proposals to Private Air-Traffic Control on Supply Chains

This time around, manufacturers have not yet meaningfully weighed in on the proposal.  There can be no doubt, however, that privatizing air-traffic control could fundamentally change the system in ways that will impact supply chains.  Obviously, in a “user pays” system, which is essentially what is being proposed, the direct costs of air transportation increase, … Continue Reading

Sarah Rathke speaks to “Talkin’ Cloud” Regarding Channel Stuffing

Last week, Sarah Rathke spoke with Derek Handova for Talkin’ Cloud about the practice of “channel stuffing” in the supply chain.  Channel stuffing is the practice of booking sales before items are actually sold at retail – and is often a form of fraud meant to increase a company’s apparent sales volumes. Channel stuffing happens in … Continue Reading

Follow Up on Lithium Battery Supply Chain Issues: Working with NGOs on Sourcing Issues

In January 2016, we wrote about a report issued by NGOs Amnesty International and African Resources Watch, revealing that most of the world’s cobalt supply – an integral ingredient for lithium batteries – comes from the Democratic Republic of Congo (DRC) and is mined using child labor.  At that time, the major retailers of products … Continue Reading

Analysis By Our Friends at Spend Matters

This week, we wanted to give a shout out to our friends at Spend Matters, who were kind enough to review Legal Blacksmith last week.  Spend Matters has published a short paper entitled, “The Intersection of Contract ‘Invisibility’ and Risk Management: Be Afraid (Be Very Afraid).” This article reviews the potential costs associated with supply … Continue Reading

Read our Article in Chief Executive Magazine!

Increasingly, companies are finding the need for increased executive monitoring of their supply chain operations.  Frequently, however, chief executives don’t know how much attention they should be giving their supply chains, or how to get relevant information.  We had the opportunity a couple weeks ago to sit down with Chief Executive magazine to discuss how … Continue Reading

Vermont Leads Nation in Requiring GMO Labeling; How Has Industry Responded?

In July 2016, Vermont’s Act 120 will take effect, requiring food manufacturers that sell into the state to indicate on food labels whether their products are made using genetic engineering.  The new law, which was enacted in May 2014, was precipitated by a growing GMO labeling movement that now has gained traction in at least … Continue Reading

How to Work with NGOs on Supply Chain Issues

Recently, an online article caught our attention.  Published on www.yarnsandfibers.com, the article is entitled, “Dutch Govt ensure sustainable garment production and textile supply chain,”.  It discusses The Netherlands Government’s recent efforts to bring together textile industry participants, trade associations, and interested NGOs to work together to encourage sustainability efforts and good working conditions in that … Continue Reading

Quoted in Corporate Counsel Article Discussing the Trade Facilitation and Trade Enforcement Act of 2015!

A few posts ago, we posted an article on H.R. 644, the Trade Facilitation and Trade Enforcement Act of 2015.  As predicted, President Obama signed the Act into law last week, which gave us an opportunity to talk with Rebekah Mintzer of Corporate Counsel Magazine on an article about the Act that she was working on.… Continue Reading
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