The COVID-19 health crisis has highlighted just how vital Personal Protective Equipment (“PPE”) is for healthcare workers and citizens during a pandemic. Due to skyrocketing demand in recent months, shortages of PPE have led to a mini-boom industry for suppliers and buyers alike. Despite the growth in this sector, PPE commercial transactions do involve significant risk and, consequently, many complex legal issues need to be directly addressed in a PPE contract.
Given the increase in PPE transactions, and the associated legal exposure involved for the contracting parties, it is extremely important to retain attorneys who have experience in guiding clients through the various stages of drafting and negotiation of PPE contracts.
PPE Contracts: What Are the Necessary Terms and Conditions?
While PPE contracts will typically contain many standard contractual terms that apply in most contractual relationships, there are also provisions and concerns specific to PPE contracts that require special attention. Below is a partial list of some of the specific legal concerns associated with PPE contracts:
- The contracting parties should pay close attention to the price for the subject PPE products. With the proliferation of PPE transactions, regulators and governmental agencies are scrutinizing these transactions for potential price gouging and illegal profiteering.
- The parties should set forth, in express terms, what government certifications the subject PPE products have, or lack.
- The location where the subject PPE products are manufactured may also impact several provisions of the subject PPE contracts. Depending on where the manufacturing is performed, the contracting parties may need to account for:
- foreign and domestic import/export laws;
- shipping terms;
- risk of loss; and
- the ability to obtain certifications from US regulatory agencies for use/sale of the subject PPE products.
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Staying Protected with PPE Contracts
With the rapid growth of the PPE industry, this marketplace is likely to attract countless manufacturers, suppliers, distributors, buyers and sellers looking to fill burgeoning demand. Given the influx of parties new to this field, together with the risks associated with an increasingly scrutinized vertical, it is essential to retain experienced, and skilled attorneys to help guide businesses through the complex PPE contract drafting and negotiation process.
Please note that this is only a brief overview of some of the legal issues surrounding contracts applicable to the purchase and sale of PPE products. As such, it is important to obtain guidance from a PPE contract lawyer prior to consideration of such transactions.
If you are interested in learning more about this topic or require assistance in connection with PPE contract preparation or negotiation, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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