M&A Nugget: Made in America
One important facet of a purchaser’s due diligence investigation of a business is to determine whether the seller is in compliance with major laws applicable to its business. With increasing frequency, manufacturers and marketers are using the term “Made in America” to describe their products. Federal laws exist, the purpose of which is to prevent the use of that term in a deceptive or misleading manner. Certain industries must disclose the content of their products made in the United States (automobile, textile, wool and fur product industries). Companies that use the “Made in America” slogan on their product must have all or virtually all of the product made in the United States. That means that all significant parts and processing that go into the product must be of United States origin; the product should contain no, or negligible, foreign content. The company must have evidence to support its claim that its products are made in the United States. Failure to follow the rules governing the use of “Made in America” can result in an enforcement action being brought by the Federal Trade Commission. So, if a seller operates in an industry that requires United States parts to be identified or the seller uses the “Made in America” slogan, it is important that the purchaser asks appropriate questions to verify that the seller is in compliance.
ABOUT GLENN D. SOLOMON
email@example.com | 443-738-1522
Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 130 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our ten offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC