Due care

Sorgfalt — care, diligence. German liability turns on whether the required care was exercised in the conduct of the work. A person who followed proper procedure and still caused harm stands differently in German law from one who caused none but skipped it.

When the basis falls away

Störung der Geschäftsgrundlage. Section 313 BGB allows a contract to be adjusted where the circumstances that formed its basis have changed so severely that holding a party to it would be unreasonable. The remedy is adjustment rather than release. The law’s instinct is to restore the balance rather than to end the relationship.

The recall

Die Rückrufaktion. German recalls are published by the Federal Motor Transport Authority and by the market surveillance system for consumer products, with the defect named. The failure becomes a public record attached to the manufacturer.

The business judgment rule

Under American corporate law, a court will not second-guess a board’s decision if it was made in good faith, on an informed basis, and in the honest belief that it served the company. Directors are protected even when the decision turns out badly. The judgment itself is what the law examines, not the outcome.

Employment at will

The American default: either party may end the relationship at any time for any lawful reason, without notice. Forty-nine states apply it. There is no statutory dismissal protection accruing with service, and no requirement to justify the decision.

The lemon law

Every American state has legislation requiring a manufacturer to replace or repurchase a new vehicle that cannot be repaired after a defined number of attempts. The remedy is triggered by repeated failure to fix, not by the original defect.

The state of the matter

German legal reasoning separates the Sachverhalt — the state of the matter, what actually happened — from the rechtliche Würdigung, the legal assessment of it.

The facts are established first, as a distinct step, with their own section in the judgment. Only then does anyone argue about what they mean.

The structure of a German court decision is the structure of Sachlichkeit.

Work owed and effort owed

German contract law distinguishes the Werkvertrag, which owes a result, from the Dienstvertrag, which owes an effort properly performed. The distinction determines liability, and it turns on whether what was promised was an outcome or a way of working.

The operating instructions

Die Betriebsanleitung. German product law requires operating instructions in the language of the market, covering intended use, foreseeable misuse, safety, maintenance and disposal. The manual is a legal component of the product. An incomplete one is a defect.

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