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This article focuses on the issue of determining to what extent a regulation that encourages and rewards companies to take measures to prevent corporate wrongdoing may be a better alternative to a pure command and control regulation. It also discusses whether a context-sensitive regulation is viable in legal systems in which a principle of obligatoriness is in force rather than a measure of discretion regarding punitive responses. The main ideas presented here are very similar to the concepts of responsive regulation and enforced self-regulation promoted by Ayres and Braithwaite; however, a comparative analysis of legal systems is carried out, highlighting current trends and their practical results. [ABSTRACT FROM AUTHOR]

Can ERM be applied as a risk management framework within adventure tourism? The paper is supported by a single-case study into the US aerial adventure industry. Data was collected from 21 interviews of senior managers within the US aerial adventure industry. Interview participants represented public and private organisations, including state agencies, operators and builders. This paper finds that even with the fragmented and dynamic state of the industry, (IERM) could provide the comprehensive and holistic approach to risk management currently lacking. Aerial adventure parks are uniform, yet the risk management procedures are not, meaning the industry is split into separate groups. A need for Industry-wide Enterprise Risk Management (IERM) is therefore identified. This, in turn, will improve public safety levels, the long-term sustainability of the industry as well as provide it with a competitive advantage. Adventure tourism lacks a risk management framework. This paper furthers academic discussion by proposing IERM as a risk management framework. This, in turn, furthers the academic discussion on ERM, by arguing for its utilisation at an industry level, and contributes to the discussion on the management of aerial adventure visitor attractions, an area currently under-researched. [ABSTRACT FROM AUTHOR]

A recent French reform has revised the legal definition of the corporation. In essence, the law stipulates that the corporation must be run with due regard to the social and environmental impacts of its activity. It also introduces the notion of raison d'être and affords the possibility for any corporation to assign social or environmental purposes to itself, defined in its by-laws. This reform is similar to recent reforms in the UK and the US, but is based on an original and distinctive theoretical argument. The aim of our article is to analyze the fundamental tenets of this reform and their implications for the theory of the corporation. It shows that the new law is based on a new positive definition of the enterprise as not only an economic organization or a productive entity, but more fundamentally a space for innovative collective action. We argue that this view of the enterprise challenges our conceptualization of the corporation in two important ways. First, it shows that the traditional theories overlook the activities of the enterprise and their related impacts, and that the corporation is not necessarily the appropriate legal vehicle for the innovative enterprise. Second, it suggests that the stipulation of the enterprise's purpose or raison d'être in the corporate by-laws can provide new promising legal foundations for corporate responsibility. [ABSTRACT FROM AUTHOR]

We study whether banks are riskier if managers have less liability. We focus on New England between 1867 and 1880 and consider the introduction of marital property laws that limited liability for newly wedded bankers. We find that banks with managers who married after a law had higher leverage, delayed loss recognition, made more risky and fraudulent loans, and lost more capital and deposits in the Long Depression of 1873 to 1878. These effects were most pronounced for bankers with the largest reduction in liability. We find no evidence that limiting liability increased firm investment at the county level. [ABSTRACT FROM AUTHOR]

This paper analyzes the social effectiveness of fines (sanctions) and awards (liability) where accident risks are influenced by decisions made by both the enterprise and the employees of the enterprise (individuals). The regulator observes a proportion of accidents and the safety decision of the individual can be contractible or non-contractible for the enterprise. All sanction regimes yield the first best, given contractible individual care. The liability regimes, however, produce sub-optimal solutions. Given non-contractible individual care, the combined use of an individual sanction and an enterprise sanction (joint use) produces the first best. The exclusive use of an individual sanction produces the first best if the enterprise does not suffer any direct harm. The exclusive use of an enterprise sanction does not, however, produce the first best. If both decision-makers are solvent and have similar liability probabilities, then individual and enterprise liability do equally well under contractible individual care. Individual liability does, however, best for non-contractible individual care. [ABSTRACT FROM AUTHOR]

Autonomous Vehicles (AVs) are likely to change a great deal about the practical workings of the liability system for auto accidents. However, we cannot know how just yet. Attempts to anticipate the future and preemptively redesign the liability system around its imagined contours are likely to invite error and frustration. Discretion often being the better part of valor, I suggest we muddle through a bit first. [ABSTRACT FROM AUTHOR]

This article theorizes how short-term revenue volatility affects new venture viability and how such volatility develops over time. Tracking the bank accounts of 6,578 new ventures over a 10-year period, we find that, even after controlling for a range of other factors, short-term revenue volatility is a strong predictor of venture exit. Although short-term revenue volatility is associated with the depletion of buffer resources and financial default, surviving ventures do not, on average, decrease their short-term revenue volatility over time. However, short-term revenue volatility decreases at the cohort level due to higher exit rates of volatile ventures. [ABSTRACT FROM AUTHOR]

In an effort to increase accountability and compliance with the Foreign Corrupt Practices Act (FCPA), in recent years both the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) have held parent companies liable for the anti-bribery violations of their subsidiaries. Scholars and practitioners have argued that the two government agencies are applying an aggressive enforcement policy based on an overly expansive understanding of agency principles. However, because most investigations settle with deferred or non-prosecution agreements, a paucity of FCPA case law prevents corporations, prosecutors, and even judges from clearly understanding what the correct standards are for determining when a parent company is liable for the actions of its subsidiaries--especially under a principal-agent theory of liability. This Note is the first to challenge the narrative that the DOJ and SEC are improperly enforcing the FCPA antibribery provisions. It delineates the ways in which a parent can be liable for the misconduct of its subsidiaries before analyzing liability predicated on a principalagent relationship and the amount of control required to establish such a relationship. It then provides a novel formulation of the correct standard to use in assessing whether an agency relationship exists, based on the Third Restatement of Agency and corporate case law. This Note then assesses DOJ and SEC cases before concluding that while the agencies are correct in holding parent companies liable for the misconduct of their subsidiaries, they are applying agency theories inconsistently, exacerbating the existing confusion as to what the correct standards are for parent companies. [ABSTRACT FROM AUTHOR]

The recent decision in Sindell v. Abbott Laboratories et at established a new doctrine of causation in product liability, "market share liability." Under this doctrine the manufacturers of the drug DES, if found guilty of the charges of negligence filed against them, would be assessed damages in proportion to their market share even though the plaintiff, Judith Sindell, cannot identify which of those manufacturers produced the drug causing her injury. [ABSTRACT FROM AUTHOR]

The article examines the effects of industry-wide commonalities on earnings in order to assess the significance of these commonalities and how they affect firms' earnings numbers. The article makes a distinction between economy-wide events such as government monetary policy that affect all firms in an economy, industry-wide events such as changes in consumer tastes that affect only the earnings in one industry, and firm-wide events, such as management changes that only affect one firm. The author suggests that industry commonalities are no less significant than economy-wide commonalities in explaining changes in firms' earnings numbers. These economic factors can even be reflected in security prices. The former studies were of interest to accounting researchers considering the distributional properties of accounting numbers, but the latest research may help estimate the value of industry information to investors studying the effect of these factors on firms' security prices.

This Article examines the civil liability of actors who encourage others to behave badly, thereby causing harm. The analysis distinguishes between individual encouragers and business-entity encouragers. Individuals most often intend for the bad behaviors and the consequential harms to occur--witness cheerleaders at a gang rape. This Article advocates stem treatment of such mean-spirited malcontents. On the one hand, if their encouragement is a but-for condition of the others harm causing bad behavior, they should be subject to liability based on traditional intentional tort. On the other hand, if their encouragement is not a but-for condition, this essay proposes an exception to the no dutyto-rescue rule that exposes such encouragers to liability. Regarding business entities charged with encouraging bad behavior--witness pharmaceutical companies that allegedly encourage opioid abuse--this essay argues against expanding existing exposures to liability. Commercial distributors of goods and services typically do not intend for the bad behaviors or the harms to occur; thus plaintiffs typically charge them with negligent marketing rather than intentional tort. A major reason for caution in regard to business entities is the invariable tendency of plaintiffs' lawyers to expand new theories of tort, such as negligent marketing, into systems of strict enterprise liability. While arguably defensible in theory, in actual practice court-made enterprise liability is unmanageable, inefficient, and unfair. Thus, even as this essay advocates expanding the liabilities of individuals who encourage bad behavior in nonbusiness settings, it argues against doing so with respect to commercial entities who distribute and promote goods and services. The former, with few exceptions, deserve to be held civilly liable. The latter, in most instances, do not. [ABSTRACT FROM AUTHOR]

The recourse to undivided patrimonies for business purposes was not at all rare in the early modern period, the major example being the Venetian fraterna. Following a description of the main features of this practice, the article focuses on the case of the Salvadori family from Trento, whose firm was based upon an undivided patrimony that belonged to an extended family group from the second half of the seventeenth through to the early nineteenth century. This case study provides numerous insights into the presence of a fraternalike form of business organization in the Prince-Bishopric of Trento. Moreover, family and business records allow us to trace precisely the evolution of the Salvadori family’s strategy over more than a century and to analyse the role played by certain key variables. It is thus possible to relate the adjustment in the family lineages involved in the undivided patrimony to the presence of actors capable of promoting family cohesion, changing demographic conditions, family wealth and status, and marriage policies. [ABSTRACT FROM AUTHOR]

The article discusess various court cases. Topics include Dryden v. Johnson Matthey court case addressing employers negligence and personal injury; Bazley v. Currie court case addressing vicarious liability, and enterprise liability; and Crossley v. Faithful court case addressing reasonable care for the economic well-being of the employees.

Purpose The purpose of this paper is to examine the mechanisms through which the use of enterprise systems (ESs) enhances buyer-supplier integration (BSI). More specifically, the authors explain a model where ES enhances BSI indirectly, mediated by inventory management capabilities (IMCs), as the way ES enhances BSI remains under-explored in the literature.Design/methodology/approach Application of the resource orchestration framework to explain how capabilities and mechanisms interplay to enhance BSI. Data were collected by means of a survey instrument. Data collection took place as part of a larger project, sponsored by the Spanish Government, to evaluate logistics competitiveness in Spain.Findings ES enhances BSI by serving as a coordinating mechanism that maintains capability configurations in a value-creating alignment. IMC plays a key, yet under-explored role as a mediating mechanism that supports ES-enabled BSI.Research limitations/implications First, this research does not fully capture the multi-party nature of the supply chain context. Second, data collection was limited to companies that were more likely to have a systematic approach to logistics issues (i.e. large- and medium-sized companies) and companies based in Spain.Originality/value This paper enhances both scholarly and practitioner understanding of the mechanisms through which the implementation and use of ES contributes to BSI. In addition, this paper integrates literature from different fields (e.g. strategy, information systems, and operations) to gain a better understanding of how the implementation and use of ES affects BSI. [ABSTRACT FROM AUTHOR]

Corporate personality and limited liability have been the foundations of corporate law for most of its modern history. While these concepts greatly contributed to the early development of corporations, their application in the modern era is outmoded. Nowhere is this clearer than in 'risky business' scenarios, where a subsidiary is constituted for the purpose of shielding the corporate group as a whole from tortious liability arising from risky or dangerous activities. Tort victims generally must rely on ineffective and inconsistent common law and tort law doctrines in order to seek redress for torts committed against them, and a number of high profile cases have highlighted the flaws in such approaches. Many corporate law and tort scholars have commented on these flaws and a literature has developed proposing rational alternatives. This paper presents the case for adopting 'enterprise liability' in risky business situations, that is, treating the companies within a corporate group as one unified enterprise for the purposes of compensating tort victims. [ABSTRACT FROM AUTHOR]

Self-driving automobiles have emerged as the future of vehicular travel, but this innovation is not developing in isolation. Simultaneously, the popularity of transportation network companies functioning as ride-hailing and ride-sharing services have altered traditional conceptions of personal transportation. Technology companies, conventional automakers, and start-up businesses each play significant roles in fundamentally transforming transportation methods. These transformations raise numerous liability questions. Specifically, the emergence of self-driving vehicles and transportation network companies create uncertainty for the application of tort law’s negligence standard. This Note addresses technological innovations in vehicular transportation and their accompanying legislative and regulatory developments. Then, this Note discusses the implications for vicarious liability for vehicle owners, duties of care for vehicle operators, and corresponding insurance regimes. This Note also considers theoretical justifications for tort concepts including enterprise liability. Accounting for the inevitable uncertainty in applying tort law to new invention, this Note proposes a strict and vicarious liability regime with corresponding no-fault automobile insurance. [ABSTRACT FROM AUTHOR]

When Hillary Clinton and Bernie Sanders squabbled during their 2015-16 election campaigns over the federal Protection of Lawful Commerce in Arms Act (PLCAA), they were talking past each other, misleading their listeners, and failing to understand what this statute pre-empting some state tort claims against the gun industry was actually about. Many critics of PLCAA argue that gun makers and sellers should be liable just like those in the auto, pharmaceutical drug, and tobacco industries. Yet, it is very rare for defendants in those industries to be successfully sued in tort for the sort of conduct that gun control advocates would like to hold the gun industry liable. In contrast to the hopes and fears of Clinton and Sanders, repealing PLCAA would not likely result in a burst of successful lawsuits, although some might be winners. Perhaps potential and actual tort litigation against this industry is better understood as part of a longer term battle over public opinion and eventual legislative reform. [ABSTRACT FROM AUTHOR]

In the American legal academy, the prevailing wisdom about the rise of modern products liability law is framed by a debate which took place more than thirty years ago. George Priest's brilliant 1985 paper The Invention of Enterprise Liability, asserted that modern American products liability law in its formative moment was enterprise liability incarnate, but condemned this commitment as itself a profound defect in products liability law. With rhetoric worthy of a Biblical Jeremiad, Priest argued that the 'unavoidable implication of the three presuppositions of [enterprise liability] is absolute liability. The presuppositions themselves do not incorporate any conceptual limit to manufacturer liability.' Priest's work was both immensely influential and sharply contested. Gary Schwartz, writing independently at first, argued that products liability law was really fault liability all along. According to Schwartz, the 'vitality of negligence' was the driving force behind the expansion of tort liability over the course of the 20th century. Negligence conceptions lurked beneath product liability law's surface embrace of strict liability. Or so Schwartz argued. Product defect liability was strict liability in name, but the risk-utility test of product defectiveness was in fact an aggressive application of negligence criteria. [ABSTRACT FROM AUTHOR]

A letter to the editor is presented in response to the article "Jogee: Not the End of a Legal Saga but the Start of One?" that was published in previous issue of the periodical.

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The current system of medical malpractice does a poor job of serving the best interests of physicians or patients. Economic and societal forces are shifting the nature of health care from the individual physician to a system of health care professionals, characterized by accountable care organizations. In particular, more physicians are employed, quality and outcomes are routinely measured, and reimbursement is moving to value-based purchasing. Medical malpractice likewise needs to transition to a new model that is consistent with the modern era of patient-centered care. Collective accountability, the concept that patient care is the responsibility of all the members of the health care organization, requires malpractice reform that reflects a systems-based practice of medicine. Enterprise liability, coupled with medical error communication and resolution programs, provides the legal framework necessary for the patient-centered practice of medicine in today's environment. [ABSTRACT FROM AUTHOR]

The article focuses on the transformation of economic analysis of tort law. Topics discussed include factors associated with mature economic analysis like institutional liability and context-based analysis, developments in economic analysis of liability, and economic analysis of multi-party litigation.