The vicarious liability of parent company liability for its subsidiary

The paper is of a theoretical nature and provides with more complete understanding of the vicarious liability, different concepts of the vicarious liability and peculiarities of the vicarious liability of parent company for its subsidiary. The paper does not provide an empirical investigation. First of all, the main finding of the paper is that the vicarious liability is complex and is by nature of combination of fault and strict liability and involves three actors and two-level relationship. Secondly, a parent company may be held liable in parallel with its subsidiary on the basis on its own negligent conduct and on the basis of the vicarious liability. Thirdly, it is important to distinguish between the direct liability of the parent company as a result of breach of a duty of care and vicarious liability as a result of piercing of the corporate veil.