I. Regulation of MNE Group Liability using Existing Legal Principles A. Equity Based MNE Groups 1.
Contract is one basis for direct liability in Anglo-American law.
Managerial control over a subsidiary may not be enough. For the Parent as Guarantor of the subsidiary the language of the guarantee for assuming liability must be explicit. Tort can be used to show that the parent by act or omission is jointly responsible with the subsidiary. For actions Standard took directly in acts that lead to the spill. The second level of liability is not supported by prior case law and leaves questions of how companies can allocate risk management.