Scopelitis International News – April 2019
April 23, 2019
Scopelitis International News – April 2019
Freight Forwarder Agent Termination
Termination clauses can be a challenge for U.S. forwarders with “partner” companies in foreign locations. The expectation of a U.S. forwarder might be that the termination clause is just another contract provision, subject only to the parties’ mutual negotiation. But, in certain jurisdictions outside the U.S., termination of an agency agreement can have extraordinary legal consequences because of so-called local “protective laws.” These laws may favor the agent to prevent perceived abusive practices – such as unjust termination – by a non-resident principal, and may require payment of compensatory damages. Properly defining an appropriate and reasonable timeframe for notice of termination, along with clear examples of “just cause” termination grounds, are important considerations in an agency agreement to minimize complications under local law. In some cases, minimum termination notice periods are provided by statute.
Expanding Web of Privacy Laws
The EU’s General Data Protection Regulation (GDPR) has potentially severe penalties for failure to protect personal data. Many companies that are based outside of Europe, but that may nevertheless be covered by the GDPR, have made significant efforts to implement new and improved systems designed to achieve compliance with the EU’s data privacy regime. Recently, the challenge has been adapting those systems to meet the requirements of new or revised data privacy laws similar to the GDPR that have proliferated in other parts of the world. In the U.S., the California Consumer Privacy Act, effective January 1, 2020, is perhaps the most wide-reaching and strict new set of state-adopted rules. Other new laws in Alabama, Arizona, Colorado, Iowa, Louisiana, Nebraska, Oregon, South Carolina, South Dakota, Vermont, and Virginia also warrant attention. Internationally, there are several new privacy laws that, in some instances, contain rules that are stricter than those imposed under the GDPR. Examples of countries that have implemented new data rules recently include Brazil, China, Finland, Iceland, Indonesia, Japan, and the UK. Scopelitis attorneys, and our colleagues in other countries, are available to assist clients with charting a course through the increasingly complex maze of global data privacy requirements.
REMINDER – Foreign Local Counsel Access Opportunity
From May 8 to 11, John Hove and Jacob Fisher will be meeting in London with more than 50 of the Firm’s local counsel resources from various countries. Many of these lawyers practice in countries that are major U.S. trading partners (e.g. Canada, Mexico, China, Japan, Germany, UK, France, India, Netherlands, Italy, Brazil, Ireland, etc.) but several others are from less frequently encountered jurisdictions (e.g. Australia, Russia, Egypt, Kenya, Nigeria, Turkey, Poland, Finland, Indonesia, Argentina, Panama, etc.). Several clients use these biannual meetings as an opportunity to request updates on particular foreign law issues or to obtain telephone or video introductions to lawyers from countries where they have existing or potential operations or issues. If you are considering expansion of your operations into a new country or have questions about an issue in a country where you already work, please contact John or Jake to discuss your specific question or arrange an introduction to a Scopelitis resource.
For more information on the latest in international transportation law, contact a member of Scopelitis’ International Transportation & Logistics Law team Nathaniel Saylor, Braden Core, John Hove, or Jake Fisher. For any additional information on our Firm, please follow Scopelitis on social media.
Scopelitis practice area newsletters are intended as reports to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
© Scopelitis, Garvin, Light, Hanson & Feary, P.C. 2019. All rights reserved.
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