If a USCompany Chooses to Establish a Wholly-Owned Subsidiary Abroad,it Faces Less

question 6

True/False

If a U.S.company chooses to establish a wholly-owned subsidiary abroad,it faces less potential vicarious liability because it is separated from the branch.

---

Definitions:

Fifth Amendment

An amendment to the U.S. Constitution that provides several rights to individuals, including protection against self-incrimination and the guarantee of due process.

Fourteenth Amendments

An amendment to the US Constitution granting citizenship to all persons born or naturalized in the United States and guaranteeing all citizens equal protection under the law.

Rational Relationship Test

A standard of review used by courts to evaluate the constitutionality of laws, ensuring that the law has a reasonable relation to a legitimate government purpose.

Economic Regulation

Government-imposed restrictions and controls on economic activities and industries to correct market failures and promote the public interest.