Recognizing and Minimizing Tort and Regulatory Risk Plan
University of Phoenix
Business Law/LAW 531
November 30, 2009
Companies such as Alumina, Inc. have to be proactive in minimizing tort and regulatory risks to conduct business in today’s world. Technology is advancing at such a great level and speed that it should make it even easier to implement the right plan. By implementing a plan, management has a process and procedure to follow to help alleviate the risks and outlines steps to take for resolution if perhaps the plan fails.
Identifying the Torts and Risks
Alumina, Inc. had several torts and risks that became apparent through the simulation and reading of material. One of these is the negligence of the PAH levels in the water. By being negligent it is possible that the company is responsible for the illness of Ms. Bates daughter. It also puts the company in violation of the EPA Clean Water Act.
Regulatory compliance is a risk that any company faces; however Alumina, Inc. ignored this risk that allowed the negligence tort to occur. The PAH levels became too high and the U.S. Environmental Protection Agency has to be involved to ensure that proper cleanup of the environment transpired. These regulations and laws are set to protect the environment, thus it protects the public, the company, including employees, and the ecosystem. The company had a responsibility to continue to self-police the ecosystem in accordance with the EPA guidelines.
The company should also be aware of Strict Liability, due to the continued accusation of repeated contamination in the water. Senior management made a good decision when they ordered an independent study to be conducted. The concern here is that even though it came back within the limits allowed, how does the PAH levels suddenly show up to be a 100 times greater than the law. According to ultra hazardous activity portion of Strict Liability law the following has to have...