Mechanical Engineering in the United States

Legal Services for Export, Distribution, and Installation with U.S. Attorneys in Munich

Whether a machine is being shipped to the U.S., an American distributor is set to sell your equipment, or you’re planning to establish your own location in the U.S.—for many German industrial and mechanical engineering companies, the U.S. 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 U.S. attorneys who are equally familiar with German small and medium-sized businesses and the U.S. market, working alongside our colleagues in New York, Boston, and San Francisco as needed.

Challenges

U.S. customs regulations, classification issues, and export controls also apply to traditional mechanical engineering products and change more frequently than many companies expect. Companies that draft supply contracts based solely on German sales law overlook the fact that the Uniform Commercial Code sets different standards in the United States.

Even a potential malfunction can trigger far-reaching liability issues in the U.S.—with implications for user manuals, warning labels, and insurance coverage.

Solutions

We handle export and customs matters for your products and draft supply contracts in accordance with the Uniform Commercial Code rather than German sales law.

We tailor contracts, user manuals, and warning notices to U.S. product liability practices and identify areas where your insurance coverage should be adjusted to meet U.S. liability standards.

Let's talk about your business operations in the U.S.

Whether it’s an export issue, a distribution agreement, or on-site installation: During our initial consultation, we’ll clarify which legal issues arise in connection with your U.S. project as an industrial or mechanical engineering company, and which steps make sense and in what order. You’ll speak directly with our U.S. attorneys in Munich—and when necessary, we’ll consult with our colleagues in New York, Boston, or San Francisco.

Our Services

Four building blocks for your U.S. operations as an industrial and mechanical engineering company—from export and supply contracts to product liability and sales structures, all the way to on-site installation. All four follow the same principle: contracts and structures that are legally sound under U.S. law and align with your business model.

Export and Supply Contracts Under the Uniform Commercial Code

U.S. customs regulations and classification issues also apply to traditional mechanical engineering products and change more frequently than many companies expect—in addition, export controls may apply depending on the product and its intended use. Furthermore, supply contracts for the U.S. market are not governed by German sales law but by the Uniform Commercial Code, the U.S. contract law governing the sale of goods, which has its own rules regarding warranties, the transfer of risk, and the obligation 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 contracting practices.

Product Liability and Warning Requirements

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

We identify areas where contracts, documentation, and insurance coverage need to be adjusted so that your machinery and equipment meet U.S. liability standards.

Sales and Service Structures in the United States

Anyone selling through a U.S. dealer or distribution partner needs contracts that govern exclusivity, territorial protection, termination rights, and liability according to U.S. contractual principles, not German ones. Those who, instead, wish to establish their own sales or service location in the U.S. will face their own questions regarding corporate structure, liability, and ongoing obligations.

We draft and negotiate distribution and dealer agreements for the U.S. market and provide support for the establishment of a company’s own U.S. location, from selecting a location to ongoing support.

Installation, Secondment, and Contracts for Services Under U.S. Law

If a system is assembled on-site in the U.S. or if you send your own employees to handle installation and commissioning, legal issues arise that go beyond the scope of the mere supply contract: Contracts for work and services in the U.S. are governed by different principles than those under German contract law, including with regard to warranty periods, exclusions, and rights to subsequent performance. Anyone who adopts German clauses on these matters without modification risks having unclear or invalid provisions.

We draft contracts for work and services related to installation and maintenance in accordance with U.S. law and identify the legal issues that need to be addressed when sending your own employees to the United States.

Frequently Asked Questions

In the United States, sales of goods are not governed by German sales law, but rather by the Uniform Commercial Code, which has its own rules regarding warranties and the transfer of risk. A German contract adopted without modification often does not align with these rules and can lead to unclear outcomes in the event of a dispute.

Significant: Even a potential malfunction can trigger far-reaching liability consequences in the U.S., regardless of whether actual damage occurs. This has a direct impact on operating instructions, warning labels, and the required insurance coverage.

It is not mandatory, but hiring and deploying your own employees raises specific legal issues under U.S. law regarding contracts for services, warranties, and remedial performance. Whether establishing your own office makes sense depends on the scope of your U.S. operations.