Sunday, January 26, 2020
Hybridity Concepts In Postcolonial Studies
Hybridity Concepts In Postcolonial Studies The flow of information and the movement of people in this ever evolving, interconnected and interactive world have been a profound reason in the creation of new cultures in the form of mixing of local and foreign ideas and values. This kind of mixing is a tiny part of the loose and slippery meaning of hybridity. The term hybridity is used in many areas such as hybrid economy (the mixture of private enterprises and government active participation in global economy) (Koizumi,2010); hybrid cars, hybrid language (creole and patois), and most importantly in relation to this study is in the arena of hybrid cultures (Tomlinson,1999; Coombs Brah,2000). Easthope (1998) contends that hybridity can have three meanings; in terms of biology, ethnicity and culture. In biological science, hybrid could mean the composition of genetic component in human being, animals or plants. In the second and third definitions, hybridity can be understood to mean an individual who possesses two or more ethnic and cultural identities. However de Toro emphasises that the meaning of hybridity in modern cultural theory has nothing to do with the biological and zoological origin of the term (de Toro, 2004). Hutnyk (2005) on the other hand reveals that the term hybridity and syncretism seem to serve the inner cultural aspects of colonialism and the global market. Several key thinkers in the realm of hybridity includes among others Homi Bhabha, Robert Young, Gayatri Chakravorty Spivak, Stuart Hall and Paul Gilroy, who draw upon related concepts from Deleuze, Derrida, Marx, Fanon and Bakhtin to name a few.(Ref) In particular, Bhabha has developed his concept of hybridity from literary and cultural theory to describe the construction of culture and identity within conditions of colonial antagonism and equity (Meredith, 1998; Bhabha, 1994; Bhabha, 1996). In socio-cultural milieu, hybridity is used as an explicative term and hybridity became a useful tool in forming a discourse of racial mixing which was seen as an aberration in the end of 18th century. The kind of hybrid during this era was largely referring to inter marriage of black and white and the offspring were identified as the hybrid product. It has also been referred to as an abuse term in colonial discourse for those who are products of miscegenation or mixed-breeds. Papastergiadis in Werbner Modood (2000) on the other hand asserts that the positive feature of hybridity is that it invariably acknowledges that identity is constructed through a negotiation of difference and that the presence of fissures, gaps and contradictions is not necessarily a sign of failure. (ibid:258). Therefore hybridity can be seen in both negative and positive forms. Ashcroft, Griffiths and Tiffin (2006) assert that hybridity occurs in post-colonial societies as a result of economic and political expansion and control and when the coloniser diluted indigenous peoples (the colonised) social practices and assimilate them to a new social mold. They also further explain that hybridity extends until after the period of imperialism when patterns of immigrations from rural to urban region and from other imperial areas of influence; such as Chinese and Indian labourers coming in into the Malay Peninsula during the labour intensive period. However, with the end imperialism, with the rising of immigration and economic liberalisation, the term hybridity has profoundly been used in many different dimensions and is one of the most disputed terms in postcolonial studies. It can take many forms including cultural, political and linguistics. It is important to note that hybridity can be interpreted in many different accounts from a slight hybrid to the extreme of culture clash. In the postcolonial studies the term hybrid commonly refers to the creation of new trans-cultural forms within the contact zone produced by colonisation (Ashcroft et al.,2003). One other dimension of this term is the hybrid talk which is associated with the emergence of postcolonial discourse and its critique of cultural imperialism.(elaborate) Easthope (1998) on the other hand asserts that in his discussions of hybridity, it has no fix definition except in relation to non-hybridity: à ¢Ã¢â ¬Ã ¦that the opposition between difference and absolute presence needs to be relativised by introducing more than one concept of identity, that a coherent, speaking subject cannot live in the gaps between identities. (p.347). Pieterse (2001:221) maintains that New hybrid forms are significant indicators of profound changes that are taking place as a consequence of mobility, migration and multiculturalism. In addition, cultural diasporization (Hall, 1990) signifies a new form of identity as a result of interculturality and diasporic relations (Anthias,2010). However, Anthias (ibid:620) postulates that: If hybrid social identities are now the characteristic identities of the modern world, then struggles over cultural hegemony and the underlying mechanisms that support it, become increasingly empty signifiers; merely to occupy the space of the hybrid constitutes an emancipator human condition. In addition, de Toro (1991,1996a) contends that hybridity is always inherent to culture, identity and nations but it is the object of reflections and definitions of different settings and also applied in very different fields. Correspondingly, de Toro suggests that one has to understand the notion of hybridity in a broader metacontext and has to see hybridity as mixing systems at the base of the combination of different models and processes. The discussion of hybridity in this study focuses on the contemporary debate about culture, ethnicity and identity which underpins de Toros model of hybridity as a cultural category. The main argument of this study is the problematic nature of managing the differences of cultural, ethnical and religious groups in Malaysias plural society in the quest for the construction of shared Malaysian identity. The discussion of hybridity in the Malaysian context in this study therefore is not about finding a midway to the solution of differences in cultures and identity but to identify a space where cultural, religious and ethnic difference can be celebrated. In as much the arguments in the succeeding sections deal with ethnicity, culture and religion, this study does not attempt to explicate an in depth discussion of the cultural theory concept. However, cultural theory will be reviewed at a surface level. In the linguistics setting, Bakhtin (1981) puts forward the notion of linguistic hybridity. He, according to Young (1995) delineates the way in which language, even within a single sentence, can be doubled-voiced. Bakhtin affirms that linguistic hybridity mixes two social languages within the limits of a single utterance but differentiated by other factors of those social utterances. Simplistically, it describes the ability to be simultaneously the same but different (ibid:20). Young further postulates that for Bakhtin, hybridity describes the process of the authorial unmasking of anothers speech, through a language that is double-accented and double-styled. Bakhtin (1981) divides his linguistic hybridity into two; intentional hybridity and unconscious or organic hybridity. The former occurs when a voice has the ability to ironise and unmask the other within the same utterance. The organic hybridity , on the other hand occurs when two languages fused together: . the languages change historically primarily by hybridization, by means of a mixing of various languages co-existing within the boundaries of a single dialect, a single national language, a single branch, a single group of different branches, in the historical as well as paleontological past of languages. (Ibid:358). The language hybridity phenomenon is one of main discussions in this current study as the multicultural society evolves in Malaya then Malaysia respectively, languages evolve in tandem. The discussion involves the emergence of Malaysian English or Manglish in social interactions of the populace within ones own ethnic community or with the other communities at large. This is argued in the discussions and findings chapter of this current study. The section that follows discusses in greater detail of hybridity in the light of Bhabhas (1998) work on cultural diversity and cultural difference. Understanding Bhabhas concept of hybridity in relation to cultural diversity Bhabhas conception of hybridity is developed from literary and cultural theory by which he identifies that the governing bodies (coloniser) translate the identity of the colonised (the other) in tandem with the essentialist beliefs. This action of translation however does not produce something that is known to the coloniser or the colonised but essentially new (Papastergiadis, 1997). Bhabha believes that it is this new blurred boundaries or spaces in-between subject-position that are identified as the locality of the disruption and displacement of predominant influence of colonial narratives and cultural structures and practice. Bhabha (1994) claims that the difference in cultural practices within different groups, however rational a person is, is actually very difficult and even impossible and counterproductive, to try and fit together different forms of culture and to pretend that they can easily coexist. As he affirms: The assumption that at some level all forms of cultural diversity may be understood on the basis of a particular universal concept, whether it be human being, class, or race, can be both very dangerous and very limiting in trying to understand the ways in which cultural practices construct their own systems of meaning and social organisation (ibid:209) There is truth to a certain degree to the statement above in terms of the universality of cultural diversity applied in many pluralistic countries including Malaysia. However, to a larger extent, this present study, at a later stage would render the limitations of that statement amidst difficulties and multitudes of problems in inter-ethnic relationship; Malaysian society has proven its ability to be one of the select few which are able to prove that the differences in cultural practices could be the catalyst not hindrance or counterproductive amongst different groups to coexist. This concept of the third space is central and useful in analysing this current study in terms of its interstitial positioning between cultural and ethnic identity with that of a negotiated identity (shared identity) in the Malaysian context. Bhabha believes that the process of cultural hybridity gives rise to new and unidentifiable, a new era of negotiation of meaning and representation. For him controversies are inevitable and unavoidable in a multicultural society as negotiations happen almost in all circumstances including socio-politics and economy down to minute affairs such as in classrooms context. The implication of western colonial legacy which had changed cultural ideology of a former colonised nation is central to the modern discourse of negotiation and instead of questioning the legality of certain cultural status assigned to immigrant cultures, it is inevitable but to accept, admire and celebrate diversity in ways which are appropriately befitting the society as a whole. The significance of the hybridity concept Post-colonial cultural politics assertions: integration and assimilation to unification As a result of hybridisation, dominant culture becomes diluted and more dispersed; less integrated and can then be negotiated. The process of cultural hybridisation allows greater opportunity for local culture to be emphasised thus presents a greater likelihood for more people to feel the sense of belonging. (Canclini,1995;Pieterse,2004). Hybridity needs to be considered as a continuous transaction of renewals and compromise of the practices of identity A more analytical perspective that reviews the assumption about culture and identity from us-them dualism to a collective sense of both. Therefore acceptance and conciliation of both difference and similarity. 5.0. The Third Space Appropriation of The Third Space to the study Otherness Stereotyping in Post Colonial Studies 9.0 Applying hybridity, otherness and stereotyping to the construction of shared identity Identity in Plural Society Propagating and espousing a new conception of shared identity New opportunities, new challenges to develop a collective sense of identity Identity is multiple, overlapping and context-sensitive (Kwame Appiah in Koizumi) New conception of self hybrid self rejects singular identity and adopt a fluid context-dependent identity Classification of identity formation: inherited and acquired (social and psychological) The Construction Malaysian Identity Summary
Saturday, January 18, 2020
Street Dreams and Hip Hop Barber Shops Critique
Brad Weissââ¬â¢s ethnographic research on popular culture, hanging out in barbershops and bus stands, seamstress tables and video halls, was carried out in the northern Tanzanian city of Arusha. In ââ¬Å"Street Dreams and Hip Hop Barber Shopsâ⬠Weiss does a great job observing the everyday life of the people in Arusha. He explores how globalization and neoliberalism affect the mindset of a community and shows the reader how gender role, media, and self-fashioning can play a big role in a person life. Weissââ¬â¢s fieldwork and observation is very accurate and informative for the most part but looses the reader in some of the topics that he presents. Brad Weiss does a great job in his chapter on gender and the role that it plays in the community of Arusha. Much of the book has been focused on the expressions of masculinity and the understandings of men that are concerned with gendered personhood, many young men in Arusha comprehend themselves and their relationships with one another in terms of what they imagine women and femininity to be like. But Weiss takes a chapter to turn to womenââ¬â¢s practices to show how the cultural process of perception and embodiment allude to the iconography of western culture. Weiss revealed to the reader that women like to keep up with the times in Arusha just like men and they are very conscious about their look and the way they present themselves. Men use magazines and catalogues to keep up with the latest trends but women are one step ahead and use commercials and movies to stay updated. Weissââ¬â¢s observation was very informative and accurate. This observation proves that globalization can influence people all around the world and have a big effect on a society. Weiss regularly shows the importance of globalization in his writing. His observation on the youth of Arusha was very precise and shows the reader how globalization and neoliberalism can shape a persons life immensely. Weiss tells the reader that through hip hop posters and magazines the younger generation of Arusha use it as a guide for fashion, music and lifestyle. This illustrates how the themes of inclusion and exclusion that shape popular practice-from the assertive modes gendered performances at bus stands and hair salons, to the fashion sense of tailors and their clients, to the viewing preferences of video audiences-operate in Arusha. He explains to the reader that the young men and women of Arusha are social actors who try to find a niche and struggle to participate in a world that is significant for them. I strongly agree with Weissââ¬â¢s point and believe that every young person in any society are social actors who try to fit in a world that they feel is right for them and use popular culture and globalization as a tool to get there. Brad Weiss does a great job showing the reader that barbershops around Tanzania are more than just a place for getting a haircut. He explains to the reader in great detail that the people of Tanzania see barbershops as a place for obtaining news, catching up on the latest trends, gossip, discovering new music, or just simply hanging out. Barbershops provide men with a ââ¬Å"chanceâ⬠, an ââ¬Å"opportunityâ⬠or a ââ¬Å"placeâ⬠during times of uncertainty. Weiss spends most of his time at barbershops because it is a great place for studying popular culture and allows him to see what the clients at these barber shops find interesting. There were some things that I found problematic in Weissââ¬â¢s writing that can turn off some readers. Some parts of the book he tends to over analyze and bore the reader with useless facts. I found myself being turned off during some parts of the book where he begins to ramble on and on. In the introduction chapter he doesn't do a good job of catching the readers attention and takes a long time to get to his point. His writing sometimes ends up being very difficult to read and enjoy at the same time and I found some chapters extremely tedious. Weissââ¬â¢s writing style can be very uninteresting and dull in the beginning of the book but he later compensates by providing interesting topics and arguments. One thing I really like about Weissââ¬â¢s writing is that he interacts with the people of Tanzania and takes time to show the reader their story and what they go through in his writing. In one chapter he tells the story of two barbers named Hussein and Ahmed who cut hair at the ââ¬Å"Bad Boyzâ⬠barbershop. He provides an ethnographic backdrop to the kinds of activities that go on in the shops and streets. This helps the reader better understand the thought process of the people that Weiss comes across and what they go through on a daily basis. It also gives the reader a different perspective on the effects of neoliberalism and globalization through the eyes of the people in Tanzania. Throughout the book Brad Weiss provides the reader with good background information about the people he observes and tells the reader their story. I find it very useful that he takes time in his writing to make sure the reader understands exactly what is going on instead of just presenting his observations. I was very impressed by how accurate Brad Weissââ¬â¢s observations were about barbershops and the people that go there in Tanzania. I believe in third world countries barbershops serve as a place for great social activity and exposure to the western culture, people rely on barbershops keep up with the times. When I visited Bangladesh couple summers ago I noticed that most people who go to barbershops go there to socialize and keep up with the latest trends that are coming from the west instead of actually getting a haircut. Just like in Weissââ¬â¢s writing about the people in Tanzania, Bangladeshi barbershops also have cut posters from magazines decorated around the shop of musicians and athletes and share many of the same characteristics. Overall I found ââ¬Å"Street Dreams and Hip Hop Barbershopsâ⬠very informative. For the most part I enjoyed reading about the topics and arguments Brad Weiss presented in his work. He did a good job informing the readers about the norms of the Tanzanian society and had a lot of interesting observations. I believe in his writing he had more strengths than weaknesses. Even though some chapters were dull and hard to read Weiss provides interesting information to the reader make up for his flaws. I learned from this book that globalization can integrate societies from all around the world more easily than I previously thought. Exposure to things like food, music, movies and fashion can have a great effect on a group of people from country that doesn't have much culture. Globalization is like a ripple effect that can change the thought process and way of life of an individual and ââ¬Å"Street Dream and Hip Hop Barbershopsâ⬠did a good job showing that effect.
Friday, January 10, 2020
Inflation and Cost-push Factor Essay
Cost-push factor inflation occurs when there is increase in cost of production of an item, which then gets translated into a higher price for that item in the market. Demand-pull factor inflation occurs when there is more money with the consumers compared to the total number of goods available in the market. With too much money chasing too few goods, prices rise because people are willing to pay more for the same item. This type of inflation generally happened when the demand exceeds supply. On the other hand, when prices fall it is known as deflation. However this is more of a theoretical concept as developing countries rarely experience deflation. Inflation in india: A combination of both cost-push and demand-pull factor exist in india. However cost-push factors are more apparent in the post liberalization period. Prices in india basically increase due to an increase in petroleum product prices, primarily because petroleum is vital input in many manufactured items and also an essential fuel for road transport, aviation and even the railways. As transportation costs rise, the prices of other products tend to rise in general. A noteworthy instance of price rise is the demand-pull factors that led to a steep rise in the price of onions in the year 2000, causing an artificial shortage in the market. In india inflation is calculated on the wholesale price index (WPI), representing the increase in wholesale price market. But it differs greatly if calculated on the consumer price index (CPI), which matters more to consumers. However, calculation of inflation is on wholesale price index because they are more or less same throughout the country, while the consumer or retail prices vary across the different regions (rural and urban) and also among different cities, depending on consumer preference for certain products, the supply and the purchase power. Taxes levied by different states also play an important role in the variation of prices of the same product from one state to another. Though wholesale prices rise at a slow pace (2-3%) comparatively, consumer prices tend to rise at a faster rate (8-9%), which is why we feel the pinch. One of the reason for this is the substantial retailerââ¬â¢s margin, which is built into what the consumer pays. Besides, the way the two indices are calculated differ both in terms of weightages assigned to respective products as well as the kind of item included in the basket of products. However, inflation is a necessary evil for developing and developed countries.
Thursday, January 2, 2020
The Doctrine of Successor Liability and the Drift Towards the Assumption of Liability - Free Essay Example
Sample details Pages: 8 Words: 2534 Downloads: 2 Date added: 2017/06/26 Category Law Essay Level High school Did you like this example? Doctrine of Successor Liability: Tracing the drift from the `Traditional non-liability rule to `assumption of liability through judicial precedents AbstractTraditional corporate law has been applied over the years to deal with the liabilities arisen after one companys acquires another company The general rule says that an acquiring corporation doesnt assume any liabilities of the predecessor corporation. The courts over the years have evolved this traditional stance and laid down exceptions, making the successor corporations assume such liabilities. This paper has tried to trace and outline the diversion from the traditional rule of non-liability to the assumption of liabilities by the successor corporations. There are four exceptions to this general non-liability rule which shall be explained in detail with progressing contentions in the research paper. The non liability principle creates hurdles in seeking remedy for the injured. The claimant might lose an y right to damages if he fails to recover from the successor corporation. The liability can even be fixed in environmental issues, where companies will be fixed with `superfund liability and made to cleanup the environment. This principle of fixing liability on the successor corporation in various areas is known as `Doctrine of Successor Liability. This doctrine attempts to bridge the gap between general rule of no-liability and tortious liability. However, the doctrine also safeguards the interest of the successor corporation from assuming any liability for tort committed by the predecessor. This paper evaluates this doctrine through numerous case laws of multiple jurisdictions, with an insight from different governing statutes as well. IntroductionDoctrine of successor liability is a relatively new and evolving field of Jurisprudence. Legal systems around the world largely rely on common law in the area of application this doctrine. A `successor is defined as 1. A person wh o succeeds to the office, rights, responsibilities, or place of another; who replaces or follows a predecessor.2. A corporation that, through amalgamation, consolidation, or other assumption of interests, is vested the rights and duties of an earlier corporation.The Restatement of Tort (3rd.) (2000) Chapter 3 outlines the Libaility of Successor Manufacturers Whether a successor can be liable for defective product sold the predecessor is decided generally by traditional corporate law emphasizes on the type of corporate acquisition between the two corporations. A cash purchase of the predecessors assets, instead of a merger or a stock purchase will attract traditional corporate laws, which holds that the successor will not be liable.There are three ways through which a transfer can be done: (a) by statutory merger or consolidation; (b) through the purchase of the stock of a target corporation; and (c) through the purchase of assets of the target corporation. The traditionally, law of corporations governing the liability of a successor corporation is affirmed in many cases. Ifone corporation sells its assets to another corporation,then the later isnt tortiously liable for the formers conduct. This principle is contended by many courts. Its purpose is to prevent the successor corporations of any liability that arises. It can be traced to the notion that the law does not force the purchaser to assume such liability. American jurisdictions also weave around the general notion that a successorcorporation, which acquires the assets of another company,wont be legally responsible for the actions of its predecessor. Successor liability rule in New York holds that a purchaser is not liable for its sellers liabilities except where there is an express agreement between them governing otherwise. The New York Supreme Court also affirmed the already existing general rule. The logic seems equally applicable as the general rule regarding successor liability is well settled that a corporation does not assume its predecessors liabilities automatically.ExceptionsThere are four recognized exceptions to the general rule. First is applicable where the buyer agrees to assume, expressly or implicitly, the debts and liabilities. The second applies to the transaction where there isconsolidation or merger of the seller and purchaser. Thethird exception is attracted when the successor corporation is merely a continuation of the predecessor corporation. The fourth exception applies to a colorable transaction which is entered in order to defraud the creditors or the shareholders of the seller corporation. The courts over the years have developed thesefour exceptions to the general rule of non-liability forassetpurchasers. Theseexceptions are made with a purpose to ensure that corporations dont evade their liabilities through the use of transactional technicalities.Under the traditional approach, asset purchasers will be considered corporate successo rs if one of the following applies: Assumption- The purchaser expressly or impliedly agrees to assume the liabilities of the seller. The court has noted that an asset sale agreement amounts to a simple transfer, which establishes that the successor didnt attain any liabilities because the identity of the predecessor was not used, nor was any of supervisors hired by the successor. The Court thus held that the buyer did not assume any liabilities of the predecessor, neither expressly nor impliedly. Under the asset purchase agreement, the purchaser did not assume any of the liabilities of the seller, because of a similar reason. In addition, Minnesota Business Corporations Act mandates the presence of a provision in a contract or an agreement to hold the transferee liable. Now in case a situation arises where the language of such a provision in the agreement or a contract is found to be unclear or ambiguous, the courts assume that there is an implied liability on the buyer the fo r defective products, if any. Thus to avoid such discrepancies involving assumption of liabilities, it is best if such an agreement unequivocally states that there is no assumption of future products liability.De Facto Merger- The transaction amounts toa de factomerger or consolidation if the corporation assumes the liability of its predecessor. The important concept in this exception is not the continuation of the business operation but the continuation of the corporate entity. The New York Supreme Court, Appellate Division, First Department, in Van Nocker v. A.W. Chesteron, Co discussed the second successor liability exception. The court notes that asset purchases can be said to be a de-facto mergers if it includes the following four factors:(i) continuation of ownership arising from the use of the successors stock as payment rather than the use of cash(ii) after the transaction the predecessor dissolves as soon as possible,(iii) the buyer assumes liabilities necessary to c ontinue the business of the seller and;(iv) the buyer continues the using predecessors enterprise.The Court in Van Nocker v. A.W. Chesteron, Co. further explained that all of these factors may not be necessarily needed to prove a de-facto merger but presence of the first two is required. It also said that continuity of ownership exists ifthe shareholders of the predecessor corporation become direct or indirect shareholders of thebuyer. Continuity of ownership is a situation where the parties to the transaction become owners together of what formerly belonged to each.b The Van Nocker Court, failing to find either of the first two elements refused to evaluate the other factors. The Fourth Department of the New York Supreme Court, Appellate Division, while determining whether a transaction satisfied the prerequisites of a de-facto merger, held that [w]hile factors such as shareholder and management continuity will be evidence that a de facto merger has occurred, those factors al oneshall not be determinative. The U.S. District Court for the Southern District of New York examined the continuity of ownership element of de facto merger stated, [T]he de-facto merger doctrine creates successor liability when the transaction between the purchasing and selling companies is in substance, if not in form, a merger. The court further stated that the factors should be considered in a flexible manner and question the crux that whether it was the intent of the successor to absorb and continue the operation of the predecessor. It maintained `continuity of ownership as one of the pivotal requirements for a de facto merger. About the fourth factor the court stated that sheer hiring of employees of the seller was insufficient to conclude that there was continuity of management. In Kretzmer v. Firesafe Prods. Corp. the attorney had switched employers and brought along a secretary, an associate, and some cases, the Court held that such an instance didnt amount to a mer ger or consolidation and thus there wasnt a de facto merger. Hence, while dealing with the de facto merger exception, continuity of enterprise or ownership is considered prior to the tree other factors. Mere Continuation: If the corporation has the same shareholders, directors and officers, it will be eligible for this exception. In the Seventh Jud. Dist. the Court said that mere continuation is a type of restructure in which one entity gets dissolved and another survives. The dissolution should take place as soon as possible, but in this case the seller was not dissolved for more than a year, so the Court held it to be out of the ambit of mere continuation exception. In other jurisdictions this exception requires continuity of owners and/or directors. This exception is problematic of application because it has never been quite clear just in what sense a corporation must continue in order to trigger the exception.4. Fraudulent- The transaction was fraudulently entered into to escape liability. The New York courts have laid their emphasis on many fraudulent transactions but have not provided any exceptions for the same. If the creditors of the seller are being defrauded by the transaction, then also it will fall under this exception, Few of the instance can be; if the predecessor corporation holds the possession of the property but doesnt actually own it, making its creditors believe that it still owns the property, if the proceeds of the sale are sent away, and if the property is sold for an insufficient amount to an acquaintance. The malafied intention to defraud has to be proven including those jurisdictions that have adopted the Uniform Fraudulent Conveyance Act.While as other jurisdictions presume such an intention. In situations like these, both the seller as well as the buyer can be held liable.The Continuity of Enterprise Exception.In 1983 Salvativ. Blaw-Knox Food Chemical Equipment, Inc., NewYorks Court of Appeals recognized Continuity o f Enterprise exception, it defined it as a part of corporate reorganization, The Supreme Court of Queens County later explained that the this theory was originally introduced by the Supreme Court of Michigan in Turner v. Bituminous Cas. Co. Salvati noted the Michigan Courts rationale, that it to be unjust to allow the successor to avoid liability Salvati set forth the Michigan courts three criteria test, such continuity would be there if: there wasa continuation of the enterprise of the seller;the predecessor dissolved promptly after the transaction, and the buyer assumed liabilities and obligations of the seller. Salvati accepted the logic put forward in the case of Turner. So the tests laid down by Turner and later reiterated in Salvati are similar to the factors laid down in Van Nocker. The Michigan Supreme Court extended the de facto merger doctrine by eliminating the continuity of shareholder requirement and applying that exception to cash transactions. Product Line Excep tion.In 1977, the California Supreme Court created the product line exception. The Court said: We therefore, conclude that a party which acquires a manufacturing business and continues the output of its line of products under the circumstances here presented assumes strict tort liability for defects in units of the same product line previously manufactured and distributed by the entity from which the business was acquired. Anything to the contrary in Ortiz v. South Bend Lathe, supra, 46 Cal.App.3d 842, or Schwartz v. McGraw-Edison Co., supra, 14 Cal.App.3d 767 (see fn. 6, ante) is disapproved Different jurisdictions have different stands on the product liability exception. In Hickman v. Thomas C. Thompson both the buyer and the seller corporations were of Illinois, the buyer had bought the assets of the seller corporation. Later a resident of Colorado was injured by a product manufactured by this Illinois corporation. There was an arms length agreement, for the purchase of as sets, signed and executed in Illinois. In Illinois the product line exception doesnt hold good. The district court opined that: 1) successor liability is a tort claim, and not a contract claim; 2) As the injury occurred in Colorado so the Colorado law applies; and 3) The Product line exception would be accepted by the Courts. Hickman courts view was dissented in the Tenth Circuit in Florom v. Elliott Mfg., and held that Colorado would reject the product line exception. Comprehensive Environmental Response, Compensation Liability Act and Successor LiabilityCERCLASuccessor corporations are liable the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Thesubstantial continuity test under CERCLA is a continuation successor liability under any other asset purchase. The same general rule of non-liability and the exceptions to it are also applicable in case of successor liability under CERCLA. Many courts have included corporate successors liability w hile interpreting the act. In United States v Bestfoods, the Supreme Court did not make this aspect of superfund liability redundant and kept the substantial continuity test alive in CERLA as well. The Court has laid down CERCLAs purpose as: CERCLAs primary purpose is remedial: to clean up hazardous waste sites. . . . Because it is remedial statute, CERCLA must be construed liberally to effectuate its two primary goals: (1) enabling the EPA to respond efficiently expeditiously to toxic spills, and (2) holding those parties responsible for the release liable for the costs of the cleanup. In that way, envisioned the EPAs costs would be recouped, the Superfund preserved, and the taxpayers not required to shoulder the financial burden of nationwide cleanup. There are various factors which the courts apply while deciding whether a successor corporation should assume any liability Courts applying the substantial continuity test consider a range of factors to determine whether the buyer has substantially continued the predecessors enterprise these include; if any successor corporation continues retaining the following:same employees;same supervisors;same name;same production or service line;same production facilities;continuation of same assets;general business; andwhether the buyer continues the predecessors enterprise. It isnt necessary that a corporation should fulfill all these criteria for it to assume liability of the predecessor. In New York v. Westwood-Squibb Pharm Co. the court held liable the asset purchaser corporation when it satisfied six of the eight factors. CERCLAs purposes and principles of corporate successor liability are both in harmony with the substantial continuity test. However, there are discrepancies that may arise; e.g., sec. 113(f of CERLAprovides PRPs with a statutory right of contribution. 42 U.S.C. 9613(f)(1). Sec.113(f)(2) says that if PRPs enter into settlements with the federal government, it resolves its liability.Con clusionThe general rule of non-liability says that a successor corporation will not assume the liabilities of the predecessor corporation for defective products sold by the predecessor. But the courts over the years have developed principles holding the successor liable. The rift between the liability law and general non-liability corporate law has led to the evolution of such rules by the courts. Mere continuation, de facto merger and the product line doctrines broaden and specify the areas for fixing of liability. These rules have also firmed protection against colourable intent of corporations to avoid liability. Donââ¬â¢t waste time! Our writers will create an original "The Doctrine of Successor Liability and the Drift Towards the Assumption of Liability" essay for you Create order
Subscribe to:
Posts (Atom)