U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because
A) they could allow the firm to recoup some costs of incorporating overseas.
B) they could allow the firm to sue foreign firms on a reciprocal basis.
C) they provide an insight in the customs of the host country.
D) they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.

Question

Quizplus · Accepted Answer

The Alien Tort Claims Act allows foreign citizens to sue U.S. corporations in U.S. courts for human rights violations committed abroad. As U.S. MNCs expand their operations globally, they run the risk of being named defendants in tort cases for doing business in countries with repressive governments or where human rights violations occur. As a result, U.S. MNCs are increasingly interested in these cases to prepare for potential legal battles and protect their reputation.

US Based MNCs Are Increasingly Interested in Cases Brought Under