Definitions for enterprise liability
This page provides all possible meanings and translations of the word enterprise liability
A legal doctrine and form of secondary liability under which individual entities can be held jointly liable for some action on the basis of being part of a shared enterprise.
Enterprise liability is a legal doctrine under which individual entities can be held jointly liable for some action on the basis of being part of a shared enterprise. Enterprise liability is a form of secondary liability. For example, suppose high-risk manufacturing activities are shunted into one corporation, while a second "marketing" corporation keeps all the profits. In the case that someone was injured by the manufacturing activity, a court might apply the enterprise liability doctrine to allow recovery from the marketing corporation, which holds all the assets. The doctrine emerged from litigation in the wake of the 1977 Beverly Hills Supper Club fire. The doctrine is examined in Walkovsky v. Carlton, 223 N.E.2d 6. Enterprise Liability has been used as alternative terminology for Industry-Wide Liability. Sindell v. Abbott Laboratories, 607 P.2d 924 cites Hall v. E.I Du Pont De Nemours & Co., Inc., 345 F.Supp. 353 to explain Industry-Wide Liability, which was equated to Enterprise Liability: "In [Hall], plaintiffs were 13 children injured by the explosion of blasting caps in 12 separate incidents which occurred in 10 different states between 1955 and 1959. The defendants were six blasting cap manufacturers, comprising virtually the entire blasting cap industry in the United States, and their trade association. There were, however, a number of Canadian blasting cap manufacturers which could have supplied the caps. The gravamen of the complaint was that the practice of the industry of omitting a warning on individual blasting caps and of failing to take other safety measures created an unreasonable risk of harm, resulting in the plaintiffs' injuries.
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"enterprise liability." Definitions.net. STANDS4 LLC, 2014. Web. 2 Sep. 2014. <http://www.definitions.net/definition/enterprise liability>.