It was a dry winter in California. So dry, Gov. Jerry Brown declared a state of emergency on Jan. 17, and companies with business interests in the Golden State are feeling the burn. There have been voluntary and mandatory water reductions in many areas, and according to Carren Shulman, Joel Cazares and Randal Short of Sheppard, Mullin, Richter & Hampton: “Anyone doing business with an entity located in California … that requires water for any business purpose … must be concerned about inventory and the impact of the drought on its supply chain.”
The authors have some tips for navigating the tricky issues of waiting on suppliers that may not deliver, which, they note, “requires careful contract drafting and contemplation in advance of new agreements, and critical analysis of existing contracts.”
