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Cardozo Journal of International and Comparative Law

Abstract

The note examines the challenges of invoking Material Adverse Change (MAC) clauses in mergers and acquisitions, particularly during economic crises like the Eurozone Crisis. It argues that the strict standard applied by U.S. courts makes it difficult for buyers to prove a MAC, rendering such clauses ineffective. The analysis suggests that MAC disputes are better resolved through arbitration by financial experts rather than courts.

Disciplines

Banking and Finance Law | Contracts | Law

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