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Mechanical engineering in the USA

Legal advice on export, distribution and installation, provided by US lawyers in Munich

Whether a machine is being shipped to the US, an American distributor is to market your equipment, or you are planning to set up your own site in the US – for many German industrial and mechanical engineering companies, the US market has long been part of everyday business; legally, however, it comes with its own set of rules.

We can advise you on this in Munich – with US lawyers who are equally familiar with German SMEs and the US market, working alongside our colleagues in New York, Boston and San Francisco where necessary.

Challenges

US customs regulations, classification issues and export controls also apply to traditional mechanical engineering products and change more frequently than many companies expect. Anyone who drafts supply contracts solely on the basis of German sales law overlooks the fact that the Uniform Commercial Code sets different standards in the US.

Even a potential malfunction can trigger far-reaching liability issues in the US – with implications for operating instructions, warning notices and insurance cover.

Solutions

We handle export and customs matters relating to your products and draw up supply contracts in accordance with the Uniform Commercial Code rather than German sales law.

We align contracts, user manuals and warning notices with US product liability practice and highlight where your insurance cover should be adapted to US liability standards.

Let’s talk about your operations in the US.

Whether it’s an export issue, a distribution agreement or on-site installation: during the initial consultation, we clarify which legal issues arise in connection with your US project as an industrial or mechanical engineering company, and which steps make sense and in what order. You’ll be speaking directly to our US lawyers in Munich – and where necessary, we’ll bring in our colleagues in New York, Boston or San Francisco.

Arrange an initial consultation

Our services

Four key elements for your US operations as an industrial and mechanical engineering company – from export and supply contracts, through product liability and distribution structures, to on-site assembly. All four follow the same principle: contracts and structures that are legally sound under US law and fit your business model.

Export and Supply Contracts under the Uniform Commercial Code

US customs regulations and classification issues also affect traditional mechanical engineering products and change more frequently than many companies expect – and there may also be export controls depending on the product and its intended use. Furthermore, supply contracts for the US market are not governed by German sales law, but by the Uniform Commercial Code, the US contract law governing the sale of goods, which has its own rules on warranties, the passing of risk and the duty to give notice of defects.

We determine which customs and export regulations apply to your products and draft supply contracts in strict accordance with the Uniform Commercial Code – tailored to your existing German contractual practices.

Product liability and duty to warn

Unlike in Germany, in the US even a potential malfunction can trigger far-reaching liability consequences, regardless of whether any actual damage has occurred. For machinery and plant manufacturers, this means that contracts, operating instructions and warning notices should be tailored to US liability practices – as should their existing insurance cover.

We highlight where adjustments are needed in terms of contracts, documentation and insurance cover to ensure that your machinery and plant meet US liability standards.

Sales and service structures in the USA

Anyone selling through a US retailer or distribution partner needs contracts that govern exclusivity, territorial protection, termination rights and liability in accordance with US contractual principles, not German ones. Anyone wishing instead to set up their own sales or service office in the US will face their own questions regarding company structure, liability and ongoing obligations.

We draft and negotiate distribution and dealer agreements for the US market and provide support for the establishment of a client’s own US office, from the choice of location through to ongoing support.

Assembly, Secondment and Contracts for Services under US law

If a system is assembled on site in the USA, or if you send your own staff to carry out the installation and commissioning, legal issues arise that go beyond the scope of the supply contract alone: Contracts for work and services in the US are governed by different principles to those under German contract law, including in relation to warranty periods, exclusions and rights to subsequent performance. Anyone who adopts German clauses on these matters without modification risks ending up with unclear or invalid provisions.

We draft contracts for work and services relating to installation and maintenance in accordance with US law, and advise on the legal issues that need to be clarified when posting your own staff to the US.

Frequently Asked Questions

In the USA, sales of goods are not governed by German sales law, but by the Uniform Commercial Code, which has its own rules on warranties and the passing of risk. A German contract adopted without modification often does not fit this framework and may lead to unclear outcomes in the event of a dispute.

Significant: Even a potential malfunction can trigger far-reaching liability consequences in the USA, regardless of whether any actual damage has occurred. This has a direct impact on operating instructions, warning notices and the necessary insurance cover.

It is not essential, but the deployment and secondment of your own staff raise specific legal issues under US law relating to contracts for work and services, warranties and rectification. Whether it makes sense to establish your own office depends on the scale of your operations in the US.