Supply Contracts Research Articles

Single monopoly profits, vertical mergers, and downstream foreclosure

We review the Chicago school's single monopoly profit theory whereby an upstream monopolist cannot increase its profits through vertical integration as it anyway has sufficient market power. In our model the dominant supplier has full bargaining power, uses observable two-part tariffs, and is only constrained by a less efficient source (such as in-house production). We show that, by vertically integrating with a downstream incumbent, the supplier can profitably commit to pricing more aggressively if a downstream entrant refuses its supply contract. This can foreclose the downstream market. The anti-competitive effects arise from the seemingly pro-competitive elimination of double marginalization.

PRAKTIK PERJANJIAN UTANG ANTARA PETANI DAN AGEN SAWIT DALAM PERSPEKLTIF QARDH DAN URF’ (STUDI KASUS DI KEC. LONGKIP)

Background. This research is motivated by the practice of debt agreements for consumptive and productive needs in the people of Lae Saga Village, Longkip District, Subulussalam City. Aim. This study aims to find out the mechanism of the debt agreement and to examine the views of the qardh and urf contracts on the debt and credit agreements that occurred in Longkip District. Methods. This study uses a type of qualitative research with an empirical approach. The object of this research is the debt agreement. The subjects are palm oil farmers and agents. The data source for this research uses primary data from interviews and secondary data obtained through library research. Results. The results of the study show that the debt agreement is carried out by the people of the sub-district. Longkip occurs because of a sense of trust and awareness to help each other. The implementation of the loan agreement is in accordance with the provisions of the qardh contract. because the pillars and terms of the contract have been fulfilled, so that the practice may be carried out. if it is reviewed based on the customs and habits of local residents, it is included in urf 'sahih because it is a good habit to do.

Exclusion Clauses in Mobile Communications Industry

Exclusion clauses are contractual provisions commonly employed by mobile communications service providers to limit their liability and protect their interests. However, the extensive use of such clauses raises concerns regarding consumer rights and legal enforceability. This article presents an analysis of exclusion clauses in the mobile communications industry, aiming to shed light on their implications and consequences for consumers. By examining legal frameworks, industry practices, and relevant case studies, this study explores the enforceability of exclusion clauses, their impact on consumer protection, and potential legal challenges they may face. The paper highlights the need for a balanced approach that safeguards both the interests of service providers and the rights of consumers. By providing insights into this critical yet understudied aspect of mobile communications contracts, this article contributes to the broader discourse on fair contractual practices and encourages informed decision-making among policymakers, legal professionals, and consumers alike.

Issues in Exclusion Clauses in the Mobile Communications Industry: Statutory Control and Exclusion Clauses as Terms of Contract

The use of exclusion clauses in the mobile communications industry has become a prominent feature of contractual agreements between service providers and consumers. These contractual provisions, designed to limit the liability of service providers, have raised significant concerns regarding consumer protection. This article explores the salient issues surrounding the use of exclusion clauses in the mobile communications industry, with a specific focus on statutory control and exclusion clause as terms of contract. It examines the legal and practical implications of these clauses and their impact on consumer rights and remedies. The article also considers the challenges posed by complex contractual language in exclusion clauses. The paper is a contribution to ongoing discourses on consumer protection within the dynamic mobile communications landscape.

Influence of LNG supply on gas market flexibility: Croatia case study

The analysis of natural gas consumption trends shows that gas consumption in Croatia is extremely seasonal, with high fluctuations during peak consumption. The objective of the research was to show the importance of each part of the system in providing flexibility. By analyzing the movement of gas flow, data was obtained on the contribution of each part of the system to the overall flexibility. The flexibility factor of natural gas imports at interconnection points, based on flexible supply contracts, was negative due to higher imports in the summer months. Additionally, production has been steadily declining, so this source of flexibility has less opportunity to provide a significant amount of flexibility. The LNG terminal as a new gas import point into the system, has not yet been considered a possible source of flexibility. The LNG volumes from the new terminal were analyzed using an analogous methodology. The results of the research showed the analysis of the flexibility of each segment of the gas system and the movement of flexibility before and after the introduction of LNG into the market. Finally, the novelty of this research could be described as the definition of flexibility calculations for each part of the natural gas system.

Dampak Kehilangan atau Pencurian barang yang Dibeli dengan Kredit pada Pembayaran Cicilan

This article discusses the legal implications concerning the loss or theft of goods purchased on credit in installment payments. The main focus of this article is to analyze the legal consequences that buyers may face when goods purchased under a credit scheme experience loss or theft. The discussion involves aspects such as buyer responsibility, the role of the seller or financing institution, and legal protections available to the buyer in such situations. The research method employed is legal analysis, detailing provisions of credit contracts, consumer protection regulations, and relevant court decisions. The research findings highlight the importance of understanding the rights and obligations of buyers in the context of the loss or theft of goods purchased on credit. Legal implications on installment payments also take center stage in outlining the potential impacts on the parties involved in such credit agreements..

Judgment Standards of Chinese Courts when Impediments to Performance of Contracts Arise in International Trade Contracts

Purpose: This paper analyzes trends in court rulings as well as application of the law to China's international trade activities in contract disputes caused by COVID-19.
 Research design, data, and methodology: This paper adopts a case study approach by analyzing the application of legal provisions to the judicial practice of Chinese courts in international contractual disputes for goods related to the pandemic.
 Results: Case analysis shows that COVID-19 is an obstacle to the performance of China's international trade contracts, and Chinese courts still follow the principle of first examining whether there is a force majeure clause in the contract between the parties.
 Conclusions: This paper suggests it is necessary to include specific contractual provisions relating to hardship and force majeure in order to establish the intended allocation of contractual risk well in advance.

ВЗАИМОДЕЙСТВИЕ МЕЖДУНАРОДНЫХ СТРОИТЕЛЬНЫХ КОНТРАКТОВ И ДОГОВОРОВ ОБ ИНВЕСТИЦИЯХ: ВОЗМОЖНОСТИ ДЛЯ ГАРМОНИЗАЦИИ КОММЕРЧЕСКИХ И ОБЩЕСТВЕННЫХ ИНТЕРЕСОВ

The article analyzes the interaction of the provisions of international construction contracts and bilateral investment treaties. The aim of the study is to identify opportunities for harmonizing commercial and public interests through model contractual clauses. The results can serve as a reference point for reforming norms and practices in the field of cross-border infrastructure. Opportunities for integrating commercial and government priorities in the areas of stabilization, arbitration, insurance, and information disclosure are being explored. Innovative provisions of standard contracts are proposed, designed to harmonize the interests of investors, the state, and society. The texts of model international construction contracts, bilateral investment treaties, multilateral conventions, scientific publications on private international investment and construction law, etc. were used as materials. The article used such methods as comparative legal analysis of provisions of contracts and agreements, system analysis of interrelationships between commercial and public-law norms, content analysis of scientific publications and expert sources, and analysis of the arbitration practice of resolving disputes from contracts and agreements. The integrated approach allowed for a comprehensive review of the interaction of international commercial contracts and investment agreements and the development of recommendations for their harmonization in the interests of all parties.

Automation, artificial intelligence and future skills needs: an Irish perspective

PurposeThis study explores insights from key stakeholders into the skills they believe will be necessary for the future of work as we become more reliant on artificial intelligence (AI) and technology. The study also seeks to understand what human resource policies and educational interventions are needed to support and take advantage of these changes.Design/methodology/approachThis is a qualitative study where a sample of highly experienced representatives from a range of small to large Irish organisations, both public and private, provide insights into this important topic.FindingsFindings indicate participants see a continued need for soft and hard skills as we evolve towards a more technologised workplace, with a need for employees to adopt a lifelong learning philosophy. As the knowledge economy in Ireland is well established, experts do not expect mass displacement to occur but differ with respect to the predicted rate of change. Novel HR interventions such as hiring for potential, pooling talent and establishing postgraduate supply contracts are seen as key. Current state interventions were mostly viewed positively but revamping of curricula is needed as well as stronger partnerships with tertiary institutions.Research limitations/implicationsThe interpretivist nature of the study limits the generalisability of the findings as they are based on a relatively small sample from one country. Also despite the significant expertise of the sample, it is not possible to predict whether their forecasts will manifest.Practical implicationsThis research highlights the need for Irish SMEs to embrace the impacts of automation and AI as many are seen to be slow in reacting to changes in technology. The study also reveals cutting edge talent management interventions for employers to adopt that will insulate them from the challenges technological change presents to recruitment and employee development.Originality/valueThe findings from this paper culminate in the development of a conceptual framework, which encapsulates the responsibilities of all parties so that future skills needs will be met. This highlights the interplay between employers, individuals/employees, the Irish Government and educational institutions, demonstrating how they are interdependent on one another as we move towards a more technologised future.

Is Provision of Medical Instrument for Use Without Any Consideration a Supply Under GST?

With the advent of GST in India, supply became the taxable event and this made the place of supply and time of supply particularly, and the act of supply in general significant. The GST laws mandate registration under section 22 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as the CGST act, 2017) for all business. Almost every realm of service is now covered under the scope of supply under section 7 of the CGST Act, 2017 and free supplies are also clearly covered within the scope of the said section. Few Pharmaceutical companies are engaged in importing and distributing medical equipment and providing healthcare solutions in India and beyond. These Companies place certain medical equipment at unrelated hospitals, labs etc., on a free-of-cost basis in exchange of a minimum purchase obligation arising out of an agreement between its clients. In a sequence of rulings from the AAR to the Kerala High Court and back to the AAR, questions regarding a unique case of free supply of Taxable Pharmaceutical Instruments based on a periodic supply contract was presented before the Authority. The discussed rulings answered what is Periodic Supply Contracts, Composite Supply, Naturally Bundled Supply and Indivisible Supply and raised various new questions and avenues for discussion. And, this article, in particular, attempts to analyse the nature of such purchase agreements and the possibility of availing Input Tax Credit on the medical instruments.

Wynagrodzenie według stawek godzinowych – wytyczne dla radców prawnych świadczących pomoc prawną konsumentom na kanwie wyroku Trybunału Sprawiedliwości z dnia 12 stycznia 2023 r. (C-395/21)

The article addresses the issue of the legal qualification of various defects in contractual provisions concerning remuneration for the provision of legal assistance to consumers. The impetus for bringing this issue closer is the recent judgment of the Court of Justice of the European Union of January 12, 2023, (case file no. C-395/21) which took interest in the area of rules for the exercise of legal professional activity. This is because, from the perspective of the EU law, it contains an assessment of the legal consequences of the lack of transparency of provisions shaping contractual remuneration based on hourly rates for services provided to consumers by the Lithuanian attorneys. The purpose of this article is not only to present the assumptions of this ruling, but also, taking them into account, to formulate conclusions that, in light of the Polish law, should be addressed at attorneys-at-law and other Polish service providers, both operating in the regulated and unregulated legal services market.

Do measurement methods matter? A meta-analysis of antecedents and outcomes of contractual governance in interorganisational relationships

Existing literature uses multiple measurement methods for contractual governance; however, it is unclear whether such differences impact the effect sizes of the relationships between contractual governance and its antecedents and outcomes in interorganisational relationships. This study revisits commonly explored relationships by examining the moderating impacts of the measurement factors. We meta-analysed 141 articles involving 32,763 interorganisational relationships. The results indicate that subjective and objective measurements cannot be interchangeable in certain relationships. Contractual governance, measured by multiple dimensions and multiple items per dimension, exhibits a stronger relationship with other constructs. Furthermore, mixing contract provisions and contract applications when using reflective indicators to measure contractual governance is not a serious issue. These findings advance our understanding of the boundary conditions of the relationships between contractual governance and other constructs. An implication for managers is that they should pay attention to both contracts per se and how contracts are subjectively perceived.

Qardh Agreement on Spaylater Limit Loans According to The View of MUI Fatwa About Sharia Electronic Money

SPayLater is a shopping loan provided by Shopee. SPayLater loans can be used by users to buy their needs in installments without a credit card. This SPayLater Limit Loan uses the Qardh contract. A Qardh contract is a loan given by one person to another with the condition that the borrower must return the value of what was borrowed. The issue of this legal research is: what is the mechanism for the SPayLater limit loan at Shopee and what is the Qardh contract for the SPayLater limit loan according to the view of DSN-MUI Fatwa No: 116/DSN-MUI /IX/2017 concerning Sharia Electronic Money. The research method used is an empirical research method with a qualitative approach. Data collection techniques that researchers use are structured interviews, participatory observation and document study. This research obtained results in the form of. 1). The SPayLater feature does not appear in every Shopee user account, only selected Shopee user accounts can register SPayLater. The SPayLater limit loan cannot be disbursed and can only be used for transactions on the Shopee application. 2). The provision of SPayLater limit loans provided by Shopee to its users has fulfilled the principles of the Qardh contract, because the pillars and conditions in the Qardh contract have been fulfilled. Furthermore, according to the view of the DSN-MUI Fatwa regarding Islamic Electronic Money, the Qardh contract provisions are not related. Because the conditions aqidnya not met.

Coordinated Supply Contracts for a Two-Echelon Supply Chain under Given Bargaining Powers

This paper addresses the supply contracts within a decentralized supply chain comprising an upstream component supplier and a downstream manufacturer. With the need to invest in production capacity before the sales season, suppliers often make conservative capacity decisions due to uncertain demand, which gives rise to the double marginalization problem. The distribution of supply chain profits is typically determined based on each member’s relative bargaining power, often exogenously provided in the market. While numerous studies have been conducted to design supply contracts for coordination in decentralized supply chains, most of them overlook the supplier’s capacity constraints and the existing bargaining power structure. To bridge this gap, this study proposes a supply contract scheme that achieves coordination under any given bargaining power structure. The key finding of this paper is that two contract types, namely capacity cost-sharing (CCS) and surplus capacity compensation (SCC), can address the entire spectrum of bargaining powers. This study demonstrates how to identify a specific threshold for a given bargaining power structure, from which the appropriate contract type is selected. Through numerical illustrations, we present how to select coordinated contracts for different bargaining power structures and examine the influence of contract parameters on the profit of each supply chain member. The primary contribution is that this study provides actionable insights for practitioners to effectively implement coordinated contracts by presenting a straightforward and practical methodology.

Technical Note—A Stationary Infinite-Horizon Supply Contract Under Asymmetric Inventory Information

A New Approach to Contract Design with Private Inventory Information In a typical decentralized supply chain, a downstream retailer privately observes its inventory level and has an informational advantage over the upstream supplier. In “A Stationary Infinite-Horizon Supply Contract Under Asymmetric Inventory Information” by Bensoussan, Sethi, and Wang, the authors study how to optimally design a stationary, truth-telling, long-term contract in such a setting. In contrast to the classic first order approach in literature, they formulate the contract design as an optimization over a functional space and develop a solution approach based on the calculus of variations. They further apply their necessary optimality condition to the class of batch-order contracts, which replenish a prespecified inventory quantity for a fixed payment in each period only when the retailer has zero inventory on hand.

ÖNORM B 2203-1 as a Supplement to FIDIC Emerald Book in Conventional Tunnel Construction

This paper explores how the ÖNORM B 2203-1 model can complement the FIDIC Emerald Book contracts in conventional tunnel construction projects, specifically focusing on cooperation, project management, reimbursement, and dispute resolution. The complex technical nature of such projects requires collaborative stakeholder engagement, efficient project management, and effective dispute resolution mechanisms. This article enhances the current body of literature by undertaking a qualitative comparative analysis of the FIDIC Emerald Book and the ÖNORM B 2203-1 model within the specific context of conventional tunnel construction projects. The findings demonstrate that specific areas in the FIDIC Emerald Book exist where supplementary guidance is required. Compared to the FIDIC Emerald Book, the ÖNORM model offers a more extensive range of project management aspects, reimbursement guidelines, dispute resolution provisions, and comprehensive technical specifications, all supported by contractual provisions. The major limitation of this study is its focus on a literature review. Thus, including the qualitative analysis in an actual project and applying the study results would be advantageous for verifying the findings.

Getting the deal done—While managing process safety risk

AbstractHistorically, chemical complexes originated from a single company that developed a large site with significant infrastructure and diverse operating units. However, as corporate objectives change, companies frequently consider alternative business models such as mergers, acquisitions, leases, and licensing agreements. These deals (referred to as mergers and acquisitions [M&A] in this paper) often result in a shift from the single owner/operator structure toward other ownership, operating, and service provider models. These models can create substantial value; however, if not properly managed, they can also increase risk. Assessing these deals to manage process safety risk is challenging; deals are often confidential, the scope is sometimes fluid, and there is limited time to complete the process safety evaluations. If significant deal risks cannot be mitigated, concerns need to be elevated to upper management so they can be addressed before the deal is signed. Contract provisions may also be needed to clarify expectations and ensure continued safe operation. This paper discusses the challenges in assessing potential M&A deals from a process safety lens and describes a work process for engaging with the M&A team, conducting preliminary screening and more detailed assessments, communicating the results, and incorporating key agreements into the contract language.

DIGITALISATION OF LOCAL PUBLIC SERVICES FOR THE BUSINESS ENVIRONMENT IN ROMANIA. THE PARTICULAR CASE OF THE PUBLIC PROCUREMENT PROCESS

The way in which public procurement is carried out affects the whole economy and, indirectly, the quality of people’s live, as a result of public servcies, goods and works acquired. Free competition between tendering economic agents, equity and fairness of procurement tenders must to be guaranteed within the framework of digitalized business-oriented public services. These have to stimulate the development of the business environment by offering contract for supply of public goods, services and works in a framework of transparent, objective and fair competition. Digitalisation of public services offers an advantage in this respect. This present paper proposes an unitary architectural model of the public procurement process within local administrations, one that could serve as a basis for the design of adequate computer software aimed at providing digital formatting to this entire process. The model is unitary within each Romanian local public administration and is also applicable to any of its structures (city councils, regional councils or their subordinated public institutions, other entities financed from public funds) and has been drafted in compliance with the applicable public procurement legislation. Proposing this model is justified not only because it provides a unitary public procurement digitalization process of the contracting authority which, at the moment relies solely on the use of the SICAP national platform, but also because its implementation guarantees the compliance with the principles of free competition between tendering economic agents as well as impartiality and fairness during the tender selection process. Digitalisation provides this advantage to both the public and private sectors, enabling their interaction, an advantage that needs to be properly exploited to generate digitalised services with added value, customized for the business environment, the added value consisting in actually ensuring these principles.

(Анти)санкционные оговорки в международных коммерческих контрактах

The article provides analysis of sanctions clauses in international commercial contracts. Such clauses are intended to regulate actions of the parties in the event of sanctions and corresponding legal consequences. In comparison to classic force majeure clauses sanctions clauses have a number of advantages and may serve several interrelated purposes, including securing compliance by the parties with mandatory rules that impose restrictions on certain economic activity, adaptation of the contract to new circumstances in the event of economic sanctions, regulation of termination of the contract, as well as the distribution of risks and costs incurred by the parties in connection with this. The authors explore the structure of sanctions clauses and their provisions, which cause difficulties in practice, diverse approaches to determining the scope of sanctions clauses in the context of extraterritorial sanctions and blocking statutes, different threshold for sanctions risks that activate the clause, spectrum of options to secure adaptation of contract provisions depending on the specifics of the sanctions regimes, standards of due care and endeavours that are expected from parties in the context of sanctions, conditions for termination of contracts and possibilities for the distribution of costs incurred, including the payment of indemnity. The article also discusses validity of sanctions clauses, their relationship with overriding mandatory rules and norms preventing circumvention of the law, considers the risks of asymmetric and disparity provisions. Particular emphasis is placed on the relationship of sanctions clauses with other sections of international contracts, in particular applicable law and dispute resolution clauses.

CJEU case law on CHF loans the most important issues still awaiting for the decision (limitation of claims, remuneration for the usage of capital)

The Unfair Contract Terms Directive and provisions of the national law which implement that legal act realize a system of consumer protection against the usage of abusive clauses in contracts concluded by consumers and professionals. The large set of case law provided by the CJEU makes it possible to clarify the principles and scope of the consumers protection. However, it is not comprehensive, as there are still important legal issues that have not been yet resolved by the CJEUs judgements. They concern, in particular, such important issues for borrowers as determining the beginning of the limitation period for claims of the parties to the contract, as well as assessing the legitimacy of the lenders' claims for payment of remuneration for the use of the capital of the loan, which had been paid on the basis of a contract which has been declared void. That issues are addressed by references in preliminary ruling proceedings, currently conducted before the CJEU on the basis of questions submitted by Polish courts, in cases concerning borrowers. Examination of these questions leads to the conclusion, that the Court probably will take a pro-consumer position on these key issues, consistently advocating for the broad protection of the weaker party to the contract.