Any business small or large will face regulatory risk such as tort liability and will have to learn how to manage those risks through preventive, detective, and corrective measures. After conducting the business regulation simulation, Shelina Virani is required to create a plan for a company like Alumina, which identifies common torts and other regulatory risk. In the first part of the plan will be discussed about the lawsuit that Alumina faced. Next, will be discussed the ways to identify those risk, and last will be discussed the measures that can be taken to manage those risks.
The Environmental Protection Agency is the governmental agency that is responsible for enforcement of environmental laws at federal level. Five years ago, Alumina was cited for non-compliance with environmental regulations. The company made the effort to correct their mistakes and has remained in compliance since that time. Even after there effort to stay in compliance, Alumina faced a multimillion dollar lawsuit from Kelly Bates who accused the company for violating environmental regulations by contaminating a body of water which caused her 10-year old daughter to acquire leukemia. This type of lawsuit creates a tort. According to Jennings (2006), “a tort is interference with someone or with someone’s property that results in injury to that person or that person’s property. When a tort is committed, the party who was injured is entitled to collect compensation for damages from the wrongdoer for the private wrong.”
There are three types of torts liability: intentional torts, negligence, and strict tort liability.
A) “Intentional Torts are the harms that results when parties commit intentional acts” (Jennings, 2006, p.368).
B) “Negligence Tort is when the conduct of one party did not live up to a certain minimal standard of care we are all expected to use in driving, in our work, and in the care of our negligence”(Jennings, 2006, p.438).
C) “Strict Tort Liability can...