Legal Implications Of The Coronavirus At A Glance

The COVID-19 virus (commonly known as the "coronavirus") is affecting companies' commercial activities around the world, with particular impact on supply chains and employment and insurance law. There is also a question around the measures the competent authorities may impose to prevent or contain the spread of the coronavirus.

A. Effects on the supply chain and recommendations for action

1. Under German law, "force majeure" requires three criteria to be satisfied: unforeseeablity, inevitability, and exceptionality. These criteria may be fulfilled, for instance, if a supplier is directly affected by a shut-down imposed by the authorities or if it is situated close to a quarantine area identified by the authorities and its employees predominantly come from a quarantine area. If a supplier invokes force majeure in the event of non-delivery or delayed delivery, the right to raise this defense should be examined based on evidence and information about potential