European Business Law Review
Volume 35, Issue 3/4 (2024) pp. 343 – 366

https://doi.org/10.54648/eulr2024022

Abstract

There is currently a great deal of interest in tort and corporate law doctrines that allow for what this article refers to as (corporate) cross-entity liability: holding companies liable for violations and harm caused primarily by the activities of other companies. One reason for the current attention to such liability is the growing effort to improve accountability in global supply chains. In many legal systems, several approaches can be considered, which differ significantly in their prerequisites and legal consequences. This article discusses the four most important ones: (1) veil piercing, (2) duty-based liability, (3) vicarious liability, and (4) enterprise liability. The aim is to distinguish the areas of application of these doctrines. To this end, their respective purposes are examined primarily on the basis of economic arguments. The underlying premise is that there can be no one-size-fits-all solution, but that there is a need for different approaches whose functions, however, should be distinguished more precisely in the future.

Extract

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