Multinational Enterprises and Tort Liabilities

Multinational Enterprises and Tort Liabilities

An Interdisciplinary and Comparative Examination

Corporations, Globalisation and the Law series

Muzaffer Eroglu

This book conducts an interdisciplinary and comparative examination of tort liabilities of multinational enterprises (MNEs). In the first part, it examines the social, economic, managerial and legal characteristics of MNEs and compares the findings of this examination to the current understanding of MNEs in the way that tort liability is applied to them. In the second part, the book examines the existing laws and principles related to liability of MNEs from a variety of jurisdictions with the aim of assessing whether these laws are adequate for the challenges that modern MNEs create. In the final part, Muzaffer Eroglu proposes solutions to the problems of tort liability of MNEs.

Chapter 8: Future of MNEs’ Tort Liability

Muzaffer Eroglu

Subjects: law - academic, commercial law, company and insolvency law, law of obligations


Introduction In the previous parts of the book, the torts committed by subsidiaries of MNEs are discussed and gaps in the legal systems are indicated by concluding that MNEs might avoid liability in tort and this problem is urgent and requires attention from academics, parliaments and judges. For this purpose the book has first indicated the distinguishing characteristics of MNEs from other institutions by examining developments in legal, social-economical and managerial-structural characteristics. Accordingly the book claims that an MNE is a distinct institution, which is unique in its characteristics and thus different from other institutions recognized by laws and thus requires different regulatory principles and theories. Accordingly Part II is devoted to the search for laws and regulations on MNEs liability issues, which has demonstrated that the laws and regulations are inefficient to solve the liability problems due to common misunderstandings of interdisciplinary characteristics of MNEs. As a result, even though the time has come to think about real, effective and internationally applicable solutions for MNEs’ liability problems, so far no concrete proposal exists for such a solution and governments seem unwilling to commit themselves to a truly legislative solution. From an academic perspective, the suggested solutions have always had weaknesses if they are not totally ineffectual. Accordingly the aim of this chapter is to propose the framework principles on which MNEs’ tort liability must be built. The principles will be based on a combination of social, economical and managerial characteristics of MNEs with a particular focus on the problems...

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