Mitbestimmung. German company law places employee representatives on the supervisory boards of large firms, half the seats in those above two thousand employees. The structure assumes that a decision reached without one side represented lacks something — and builds the representation in before any conflict arises.
law
The long relationship exception
The Federal Court of Justice has held that a customer in a long-standing supply relationship is not obliged to inspect immediately where he has received the same defect-free goods for years and the supplier changed the specification without telling him.
The duty to check relaxes in proportion to the trust earned — and the exception exists because the supplier broke the pattern silently.
Severance by formula
German severance — Abfindung — is customarily calculated at half a month’s salary per year of service, and the formula is used in settlements and named in statute for certain dismissals. Length of service converts directly into money at a rate everyone knows before the conversation starts.
The settlement judge
Der Güterichter. German courts appoint judges whose function is to conduct settlement negotiations rather than to rule — a separate judge from the one who would decide the case, with no power over the outcome. The court provides a route to agreement that cannot become a route to judgment.
The proportional inspection
German case law requires more intensive inspection the greater the potential damage. For large deliveries a sample suffices. Where there is any suspicion of a defect, further examination is required.
The standard is what could reasonably be expected of a proper merchant in that particular case — which means the buyer is expected to think about what is at stake before deciding how carefully to look.
The social plan
Der Sozialplan. Where a German employer restructures in a way that disadvantages employees, the works council can require a negotiated agreement compensating those affected. If the two sides cannot agree, a conciliation board decides and its decision binds. The employer cannot simply proceed.
Balance of interests
Interessenausgleich. Balance of interests. A term from German labour law, where an employer planning a major change must negotiate one with the works council before proceeding. The statute names the objective. Not an agreement, not a settlement — a balance.
The Mediation Act
Germany passed a dedicated Mediation Act in 2012, defining the process, the mediator’s confidentiality and independence, and providing for judges to refer cases to it. Mediation is defined by the parties reaching their own solution. The mediator has no power to decide.
The manual
Die Bedienungsanleitung. German manuals are thorough to a degree that is often mocked abroad, and the thoroughness is a legal requirement — intended use, foreseeable misuse, safety, maintenance, disposal. The product is assumed to be used by someone who wants to understand it.
Without culpable delay
The word unverzüglich runs through German commercial law, and it has a legal definition in § 121 BGB: without culpable hesitation. Not as soon as convenient. Not within a reasonable period. Without hesitation for which you could be blamed.