Mass Balance Claims

Mass balance is an accounting method that tracks materials through a supply chain to ensure input quantities match output quantities in finished products. Consider a hypothetical supply chain with 500,000 pounds of a commoditized, raw material available for purchase, to which a supplier adds 500,000 pounds of recycled content. If the product pool cannot be segregated into recycled and nonrecycled streams, no buyer of the commodity will not be able to say exactly how much recycled material they... By: Katten Muchin Rosenman LLP