RUNNING HEAD: TORT AND REGULATORY RISKS
Alumina: Tort and Regulatory Risk
University of Phoenix
May , 2009
Environmental laws are in place to regulate air pollution, regulate water pollution, and regulate waste disposal on land. The earliest form of legislation was passed in 1955, the Air Pollution Control Act. In 1967 Congress passed the Air Quality Act. This Act was amended in 1970 because states did not take the necessary steps to regulate air pollution. Under this Act, the Environmental Protection Agency (EPA) was authorized to regulate air quality standards. Regulatory agencies, such as the EPA, are responsible for overseeing legislations for a given sector. States had to implement plans to achieve federal standards and had to provide the EPA with such information (Jennings, 2006). Businesses, such as Alumina Incorporated, must follow federal guidelines as regulated by the EPA or risk going out of business due to fines, and sanctions. Members of the organization and/or other related individuals can also be jailed if found to be in violation of federal laws.
Torts are civil wrong doings; ‘interference with someone or with someone’s property that results in injury to that person or that person’s property’ (Jennings, 2006). Businesses are at risk of three different types of torts, intentional tort, negligence and strict tort liability and should have internal compliance processes in place.
Alumina Incorporated is a U.S. based company, located in the Lake Dira area in the state of Erehwon, which has branches in eight countries around the world. About 70% of its sales are from United States and sales contribute to the company’s $4bn. The company specializes in automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and alumina smelting. The executives and leadership in charge are Chairman Roger Lloyd, Chief Operating Officer Chris Blake, Head of...