The creation and development of a legal regulatory environment conducive to business and e-business is central to the improvement of trade among the E.U members. Currently, the Lisbon Agenda of “making the E.U the world’s most competitive and dynamic knowledge based economy by 2010” was already under threat because trade barriers to the development of general business and e-business had not been effectively removed. Because of this, many of the European Union’s businesses operate within an e-business environment that is full of legal uncertainties and legal impediments to the take up of e-business.
Central to these legal uncertainties is the product liability directives enshrined in the Rome II regulations. The Rome II regulations, though credited for opening up trans-border trade, have also been a source of criticism for the uncertainties they have caused in respect to the choice of law applicable in trans-border product liability cases. The dominant view in this argument is that the Rome II regulations on product liabilities invade the “country of origin” principle that was more customized to allow the growth of business. Instead, the Rome II Regulation adopt the “country of reception” principle which is damaging to the security of business in the E.U. this paper will therefore look at the problems producers and businesses may face in respect of the Rome II regulations and their impacts on the businesses across the E.U members.
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