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Full Title: Liability of Corporate Groups: Autonomy and control in Parent-Subsidiary Relationships in US, German and EU Law, An International and Comparative Perspective. Corporation law dates from the 19th century when the growth of business enterprise required a division between the private and the company sphere, making the company a legal person with its own rights, responsibilities and liabilities. The company was no longer the legal equivalent of its owner but became a separate legal entity, providing a form of legal protection for the owners, employees and the customers. The introduction of company law meant a great step forward for those engaged in big business in Europe, the U.S. and elsewhere.
Theories of enterprise liability have, historically, had a significant influence on the development of various aspects of the law of torts. Enterprise liability has impacted upon both statutory and common law rules. Prime examples would include laws on workmen's compensation and products liability. Of late, in a number of jurisdictions, enterprise liability has been a powerful catalyst for change in the employer's responsibilities towards third parties by prompting changes to the law on vicarious liability. The results have been seen most dramatically where the employer's responsibility for the intentional torts of employees is concerned. Recent common law reforms have not been without controversy and have raised difficult and challenging questions about the appropriate scope of an employer's responsibility. In response to this, Douglas Brodie offers a critique of the employer's common law obligations, both in tort and under the law of contract of employment.
In recent years critics have assailed the cost, inefficiency, and unfairness of American tort law, including products liability and medical malpractice. Yet victims of accidental injury who look to the tort system for deserved compensation often find it a formidable obstacle. Those who seek to reform tort law find legislatures, particularly the United States Congress, paralyzed by the clash of powerful special interest groups. Understanding Enterprise Liability sheds new light on the raging tort reform debate by challenging its fundamental assumptions. Offering historical insights and fresh perspectives on the politics and possibilities for sensible reform, Virginia Nolan and Edmund Ursin pragmatically assess alternative routes to a workable, balanced, and equitable system of compensation for personal injury. They offer a specific proposal, based on the precedent of strict products liability that incorporates the insights of no-fault compensation plan scholarship to create an enterprise liability doctrine that should appeal to courts and to tort reformers.
Today's economic and social context demands that corporations - once seen only as private actors - owe duties to the public.
Modern multinational corporate groups of incredible complexity conducting world enterprises through numerous subsidiaries have rendered traditional corporation law archaic. The traditional concept of each corporation as a separate legal unit clashes with modern economic realities and frustrates effective regulation when applied to affiliated corporations collectively conducting a common enterprise. In response, there is emerging a law of corporate groups directed at the enterprise rather than its corporate components. As national legal systems begin to apply enterprise law to multinationals, including their foreign companies, the resulting extraterritorial application of national law inevitably leads to international controversy. Resolution of the problems presented by conflicting national regulation of multinational enterprises presents a major challenge to international law and foreign relations law, as well as to corporation law. This volume is a comprehensive review and analysis of these major legal developments and their economic and political implications. It concludes with a pathbreaking analysis of the jurisprudential implications of the changing corporate personality in enterprise law focusing on economic organization rather than on the conceptualized legal entity of yesterday.