Automotive Supplier Price Increase Demands: Contractual and Commercial Considerations

Can a supplier unilaterally increase its price?

Is the purchase order binding?

Does the contract contain a price-adjustment mechanism?

What happens when raw-material or energy costs increase?

Can a supplier stop shipments if the customer rejects an increase?

What is the effect of accepting shipments at the increased price?

How should rights be reserved?

Should the parties enter into a temporary agreement?

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