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Abstract

Particularly in the last decade there have been many foreign plaintiffs who have brought actions against American drug manufacturers alleging negligent marketing, sale and distribution of drugs, intra-uterine devices and even more recently heart valves, as well as alleging failure to warn consumers adequately of the possible risks involved in use of the products. In most cases the American manufacturer has a complex corporate structure and international network, with the product being sold in many countries through a series of local subsidiaries. The question here becomes this: at what stage does the American parent company cease to be liable for defective products and the foreign subsidiary take over?

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