A good consortium communicates regularly with its members, is committed to providing them with the best service it can provide, and sets policies, procedures, and expectations for regular group engagement. In addition, the best consortia will increase the return on investment (ROI) through a better knowledge and understanding of how certain commodity or expenditure sectors work, by communicating and cooperating with other companies with more experience in this field of raw materials or expenses. An example of a nonprofit consortium is the Appalachian College Association (ACA), headquartered in Richmond, Kentucky. The association consists of 35 private liberal arts colleges and universities spread across the central Appalachian Mountains of Kentucky, North Carolina, Tennessee, Virginia, and West Virginia. Together, these higher education institutions serve some 42,500 students. Six research universities in the region (University of Kentucky, University of North Carolina, University of Tennessee, West Virginia University, University of Virginia and Virginia Tech) are affiliated with the ACA. These institutions assist the ACA in reviewing applications for scholarships and fellowships, organizing workshops and providing technical assistance. The ACA strives to serve higher education in rural areas of these five states. For the employer, it is important to understand the limits of the consortium leader`s power. The employer should avoid requiring immediate responses where the consortium leader does not have prior authorisation and his or her partner is absent.
An agreement on the ground would be contrary to the consortium agreement. This leads to further litigation within the consortium and can backfire on it for the employer. The consortium of the future offers the advantage of know-how more than the advantage of scale. Finally, especially if raw material prices keep rising, the best practices of a competent consortium will extract all the fat from the supplier`s margins and get the best price. As soon as this is done, the consortium will use its know-how to help its members develop purchasing technology, reduce wasted consumption and improve the application of the goods and services they buy. In Germany, the prevailing view is that the consortium is a kind of national life partnership (§ 705-740 BGB). In external relations, unionised members may decide on joint and several liability under Paragraph 421 BGB, while internally there is a partial exemption from such liability. Joint ventures often include loan consortia, securities issuances, including emission consortia, construction consortia, also known as investment consortia, and earnings pools. Sometimes special purpose entities created for sharing construction facilities (planning companies) are listed in a category with the consortium and pool. Cooperation agreements concluded under German law do not have a uniform legal character. There are a large number of legal forms of cooperation that could be cautiously described as consortium contracts. These include a civil law company in its internal and occasional variants (occasional company), as well as a argE and a structure simply called a “consortium”.
[7] These consortia usually start as a vertical or horizontal game, but as they gain cutting-edge expertise in certain categories or attract a large number of members in an industry, they will expand their service offerings. In the vertical situation, a mixed offer comes into play, as the consortium gradually allows non-professional players to use the consortium as a horizontal offer for certain common categories for which this offers a cost advantage for the consortium and its members. . . .