Quality Assurance Agreements under ISO/TS 16949 – liability risks and avoidance strategies

Quality Assurance Agreements (QAA) shall be deemed essential agreements within the supply chain in the automotive industry. They must be designed and transposed in accordance with the strict regime of processes of ISO/TS 16949:2009 in order to comply with the superior principle of avoidance of defects. They must ensure that the processes of communication for the determination of specifications result in congruent stipulations. The party not communicating is basically exposed to liabilities due to breach con contract beside the liability for the product. The QAA must also ensure that the strict processes of incoming inspections of purchased components shall be complied with in accordance with ISO/TS 16949:2009 -7.4.1. and 7.4.3. The waiver or the restriction of the incoming inspection under the commercial rules of Section 377 HGB (German Commercial Code) shall be deemed subordinated and bear substantial risks.
(Translation by Charlotte Kiesslich).