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A Better Partnership


Jul 2008
July 24, 2008

Scrutinize Global Terms and Conditions

As you are all aware, the steel and resin price issues which have plagued the automotive industry for the past four years continue to be an issue. Apparently in response to the recent steel price increases, Johnson Controls, Inc. has yet again revised its Global Terms and Conditions (Automotive Experience) effective June 1, 2008. These new terms place JCI's suppliers at a greater disadvantage than under the January 18, 2008 revision. You can review the GTCs at the following Web address:

The GTCs claim to apply to all Purchase Orders, including any revisions, issued after June 1, 2008. We are recommending that our clients immediately reject application of the June 1 terms and conditions. It is important that the rejection letter be carefully drafted to give it the greatest likelihood to be effective. If you would like to discuss how the new terms might affect your company or if you would like assistance in drafting a rejection letter, please contact the attorneys listed below.

Fredric A. Smith, 248.784.5034,
Thomas J. Manganello, 248.784.5007,
Jeena S. Shah, 248.784.5025,

Thomas J. Manganello, Chair, Automotive Industry Group

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.



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