Subcontract Act
Recently, the enforcement of the Subcontract Act has been strengthened as part of a policy to protect SMEs, and as a result it has become more important than ever to pay attention to it.
The Subcontract Act is often formalistic, and is different from the abuse of superior bargaining position doctrine found in antitrust law. As a result it is often violated unexpectedly. In many kinds of transactions we advise on avoiding Subcontract Act violation, carry out training for directors and employees, and support the establishment of internal controls and drafting of internal rules. In the event of a suspected violation, we conduct a prompt investigation and assist with a leniency application if necessary. When our clients are investigated by a government agency, we negotiate with the authorities strategically to avoid a formal warning, leveraging our experience with many cases of Subcontract Act violations.