Bowoto V. Chevron Corp. - Legal Implications

Legal Implications

Legal regulation of multinational corporations is difficult because they are not under the control of any one jurisdiction. Rather, they are subject to multiple legal systems, including the country of their corporate headquarters as well as the countries in which they operate. There is no international oversight body to regulate multinational corporations, or an international forum in which suit may be brought against multinational corporations. It can be difficult for domestic courts to hold multinational corporations responsible for jurisdictional reasons, or because the particular government lacks the legal infrastructure to impose liability. An example of a jurisdictional shortcoming in the United States is the difficulty of piercing the corporate veil. It can be extremely difficult to hold a parent company liable for acts committed by its subsidiary. Bowoto v. Chevron Corp. is an example of the difficulties in suing a multinational corporation for alleged violations of human rights, and perhaps the need for more formal regulation and accountability of multinational corporations.