[sphinx]

I have a problem with the concept that a business that contracts to other businesses is responsible for whether or not those businesses follow all the rules.

Me too. The lawyers are going after WalMart because it has deep pockets, but it's still a dangerous precedent. In theory, every homeowner would be liable if a housecleaning service or painting contractor had an illegal on the job.

[.cnI redruM]

Read up on agency law in any business textbook. Walmart will argue that these contractors were independent agents. THis will make it harder for attorneys to pillage them...

[usurper]

The lawyers are going after WalMart because it has deep pockets, but it's still a dangerous precedent.

There is more to it than just that. Other competitors can sue WalMart for damages under RICO which caries significant recovery and punitive damage awards. They can claim that by hiring illegal aliens at substandard wages WalMart was able to gain an unfair and illegal market advantage.

When you think about how many companies WalMart has put out of operation, there are a lot potential litigants out there.