...Recognizing and Minimizing Tort and Regulatory Risk Plan Damesha N. Horace Law 531/Business Law July 19, 2010 Recognizing and Minimizing Tort and Regulatory Risk Plan A tort is a civil injury designed to provide compensation for injury to a legally protected, tangible or intangible, interest (West’s Business Law, 2004). To reduce litigation and tort liability, businesses should ensure they are educated in local, state, and federal laws, and regulations. To protect its reputation and assets, it is critical that businesses have a plan in place to address tort and regulatory risks. Preventative, Detective, and Corrective Measures A preventative plan should include procedures that make businesses aware of regulations and liability torts they could encounter. The company business plan should also include actions to take in the event of a government regulation violation or tort liability. The plan should identify possible torts for non-compliance to government laws and regulations. Other issues that should be in the plan include health risks to employees, consumers, and the public. Companies should delegate a team of individuals to educate employees. This team should fully understand laws and regulations and also keep management abreast of new issues as they develop in the industry. Common Torts and Risks Negligence, defamation/slander/libel, invasion of privacy, Freedom of Information Act (FOIA), and strict liability are tort liabilities uncovered after...
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...Minimizing Tort and Regulatory Risk Plan Environmental Regulation is perhaps the most stringent area of government’s regulation in business. The government imposes great technology investment demands on the industry for regulatory compliance. One single act of irresponsibility can cost businesses greatly or be forced to close (Business Regulation Simulation, 2009). It is important to identify, manage, and correct torts and regulatory risks for Alumina, Inc. so legal issues do not arise in the future. Alumina, Inc. is a $4 billion dollar USA-based industry leader in Aluminum making. They operated in eight countries around the world. The US accounts for seventy percent of its sales. Their business interests are in: automotive components, manufacturer of packaging materials, and aluminum smelting. Alumina falls under jurisdiction of Region 6 of the EPA. A tort is the French word for a “wrong.” The law provides remedies to persons and businesses that are injured by the tortuous actions of others (Cheesman, 2010). Kelly Bates claims Alumina did not comply with the Environmental Protection Agency (EPA) legal limit of producing PHA. The drinking water in Lake Dira was found to be unsafe, which caused leukemia in her 10 year old daughter. The plaintiff has filed a million dollar personal injury lawsuit against Alumina to recover punitive damages (Business Regulation Simulation, 2009). Two of the possible tort violations in this simulation are negligence...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan A business, whether for or not for profit, in this country, is regulated under guidelines known to us as laws. These laws hold business leaders accountable for conducting business in an ethical manner and protect consumers from negligent practices imposed by a business. An example of these laws is Tort Law, which is a law that provides compensation for tortuous acts to an injured party or party’s property through a civil lawsuit (Cheeseman, 2010). Tort, defined as “a wrong”, is categorized by two components: Negligence Torts and Intentional Torts. The issue of a tort violation is a matter of the plaintiff proving his or her case or the defendant establishing a reasonable doubt that dismantles the plaintiff’s case. By using Alumina, Inc. as a point of reference, this paper will address how regulatory risks are identified and how they can be managed though preventive, detective and corrective measures. It will also concentrate on the torts and risks identified in the simulation and develop a plan that recognizes and minimizes the regulatory risks in this week’s simulation as well as those examined throughout the chapters in this week’s readings. Alumina, Inc., a four billion dollar United States based aluminum maker located along the borders of Lake Dira in Erehwon, is a manufacture of packaging materials, automotive components, bauxite mixing, alumina refining and aluminum smelting. It operates in eight countries...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan Law 531 Charles Cook January 24, 2011 Recognizing and Minimizing Tort and Regulatory Risk Plan For organizations to avoid detrimental situations that can create excessive loss for the business, it is imperative for them to Recognize and minimize the risks associated with torts. According to Henery Cheeseman, 2010, “Tort law imposes a duty on persons and business agents not to intentionally or negligently injure others in society”(Cheeseman, 2010). Developing a clear plan that reduces and eliminates any fines, penalties and tort liabilities will help the success of a business. Cheeseman (2010) states “Tort law imposes a duty on persons and business agents not to intentionally or negligently injure others in society” (Cheeseman. 2010). Plan elements Knowing the four elements of defending against negligence is fundamental to developing a preventative plan against negative effects of a tort. With foresight, a business can plan against the occurrence by superseding or intervening the event. Having knowledgeable team members who can determine whether or not the company is actually responsible for an event is essential. Assuming the risk of potential negligence can help to diminish the possibility of tort. Keeping a business team aware of what risks are possible and can help to avoid situations where a company knowingly enters into risky practices will keep businesses safe from liability. Finally, both contributory...
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...Recognizing and Minimizing Tort and Regulatory Risk A tort is an act by a business that results in injury to a person, property, or good name. In most cases the person injured is entitled to compensation (Jennings, 2006). It is in the businesses best interest to be educated on local, state, and federal laws and regulations to reduce regulation and tort liability. A business must protect its assets, earnings, and good name. A company must have a plan in place to reduce and eliminate fines, penalties, and tort liability. The business must have a preventive plan in place to address regulation compliance and tort liability (Dore, 2008). Preventative, detective, and corrective measures The preventive plan should include measures to know and understand regulations and liability torts the business could encounter. Furthermore, the business plan should include steps that will be taken in the event of a government regulation violation or a tort liability. The plan should first identify the possible torts for non-compliance to government laws and regulations. The following are some of the issues the preventive plan should include: The business must identify health risks to employees, consumer, and the general public. The business must take solid steps to ensure the product, or services rendered is not harmful to others. An employee of the business needs to be assigned and responsible to understand the laws and regulations that affect all facets of the business. This person needs...
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...Minimizing Tort and Regulatory Risk Plan Recognizing and Minimizing Tort and Regulatory Risk Plan LAW/531 September 29, 2010 Introduction Alumina, Inc. makes aluminum products and has revenues of over $4 Billion Dollars. The company is based in the United States (US) with operations in eight other countries around the world. The US accounts for 70% of Alumina’s market share. Alumina has business interests in automotive components and manufacture packaging materials, bauxite mining, and Alumina refining and smelting. The company falls under the jurisdiction of Region 6 of the Environmental Protection Agency (EPA) (University of Phoenix, 2010). Recognizing and Minimizing Tort and Regulatory Risk Plan Companies and organizations such as Alumina, Inc. have corporate governances that require them to operate their businesses under government rules, regulations and boundaries. The rules and regulations have been authorized and enacted by major legislation, which are enacted by Congress and enforceable by laws. Minimizing the risk of tort liability is the goal of every organization and company. Five years ago Alumina was in violation of environmental discharge norms in a routine EPA compliance evaluation inspection. The EPA ordered a cleaned up and Alumina complied right away. Now, the case of negligence starts. The government places a high level the importance on the preservation of the environment and enforces environmental regulations. Alumina has to come...
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...Tort Risk and Business Regulation Simulation Jane Thomas University of Phoenix Business Law/531 Thomas Friedman October 19, 2010 In today’s business world it is crucial for organizations to have a plan in place to identify and manage tort liability. This can be managed through preventive, detective and corrective measures. The purpose of a plan is for an organization to manage and minimize individual risks. Organizations that fail to comply with Federal, State, and local regulations expose the organization to regulatory risks. This could greatly impact the organizations reputation, earnings, and existing assets. This paper will identify regulatory risks and tort liability as related to Alumina Inc. The United States based Alumina Inc. is a global multibillion dollar company based in the state of Erehwon near Lake Dira. Alumina is a manufacturing plant that specializes in automotive components, alumina refining, aluminum smelting, bauxite mining, and packaging materials. The corporation operates in eight countries with 70% of its sales coming from the United States. Alumina falls under jurisdiction 6 of the Environmental Protection Agency (EPA). During a routine EPA compliance evaluation inspection five years ago, Alumina was found to be violation of discharging polynuclear aromatic hydrocarbons (PAH) that exceeded the EPA standards. EPA demanded a cleanup to which Alumina complied without delay. Alumina Inc. is being accused by a local resident...
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...on the industry for regulatory compliance. One single act of irresponsibility can cost businesses greatly or be forced to close (Business Regulation Simulation, 2009). It is important to identify, manage, and correct torts and regulatory risks for Alumina, Inc. so legal issues do not arise in the future. Alumina, Inc. is a $4 billion dollar USA-based industry leader in Aluminum making. They operated in eight countries around the world. The US accounts for seventy percent of its sales. Their business interests are in: automotive components, manufacturer of packaging materials, and aluminum smelting. Alumina falls under jurisdiction of Region 6 of the EPA. A tort is the French word for a “wrong.” The law provides remedies to persons and businesses that are injured by the tortuous actions of others (Cheesman, 2010). Kelly Bates claims Alumina did not comply with the Environmental Protection Agency (EPA) legal limit of producing PHA. The drinking water in Lake Dira was found to be unsafe, which caused leukemia in her 10 year old daughter. The plaintiff has filed a million dollar personal injury lawsuit against Alumina to recover punitive damages (Business Regulation Simulation, 2009). Two of the possible tort violations in this simulation are negligence and liability. The potential for negligence in this case must be proven to contain breach of duty and duty of care. The liability tort must prove failure to protect and failure to warn. Alumina, Inc. has a clean record...
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...Running head: BUSINESS REGULATION SIMULATION Business Regulation Simulation Bernice Davis Business Law LAW531 September 19, 2011 Alumina Inc. is a business that has “interests in automotive components and manufacture of packaging materials, bauxite mining, alumina refining, and aluminum smelting” (University of Phoenix, 2011). Five years ago, Alumina Inc. was in violation of environmental discharge due to a failed PAH concentration test that was above the prescribed limit (University of Phoenix, 2011). Kelly Bates has a daughter who is suffering from leukemia and is trying to establish negligence on Alumina Inc. and their violation from five years earlier. There are four torts that Alumina Inc. could be in violation with and they are intentional tort, unintentional tort, product liability and strict liability. Alumina Inc. will review if they have violated any of these torts and will try to settle with Kelly Bates. Intentional Tort An intentional tort is “a category of torts that requires that the defendant possessed the intent to do the act that caused the plaintiff’s injuries” (Cheeseman, 2010, p. 75). Alumina Inc. is having a suit brought against them that the environmental violation from five years ago contributed to Kelly Bates daughter’s leukemia. Alumina Inc. is faced with what the company should do in order to determine if such allegation is legitimate. The company decides it can either conduct independent site studies or investigate Kelly...
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...important part of any management strategy. As shown in the Business Regulation simulation; even one instance of increased liability can cause long-term concerns for a business. Each violation or perceived violation can open the business to questions of negligence and both legal and financial responsibility. To minimize these instances and create a business that has limited liability concerns it is important that management creates and maintains an effective risk management model for the business. Using the simulation provided, our team has identified legal issues and tort violations presented in this scenario, defined a process for managing risk factors, and identified relevant factors in determining what steps to take after a violation occurred. Legal Issues and Principles In the scenario presented Alumina had one Environmental Protection Agency (EPA) violation five years earlier for unacceptable levels of polycyclic aromatic hydrocarbons (PAHs) found in nearby Lake Dira. This contamination was found to have occurred as a direct effect of Alumina’s refining operations. PAHs are carcinogenic chemicals released during refining activities as “suspended particulate matter in the air” (Breast Cancer Fund, n.d.). The company complied fully with the EPA’s order to clean up the contamination as evidenced by a subsequent agency audit. As stated in the scenario; aside from “this one incident, Alumina Inc. has enjoyed a good overall environmental regulation compliance record”...
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...Recognizing and Minimizing Tort and Regulatory Risk There is an imminent necessity for organizations to recognize and prevent torts. In the following essay we will find the analysis of a simulation for a company called Alumina, indicating the legal matters and risks they are taking. Also we will discuss a preventive plan for a company in Puerto Rico and how the Puerto Rican government treats torts and regulations. The simulation of Alumina, is very interesting. This fictitious company is accused of contaminating water with carcinogens. and consequently a girl who consumed the water was diagnosed with leukemia. The mother blames the company and is stating this to the news. The government empowers certain agencies to assist states in regulating the way companies do certain procedures to maintain a certain quality of life. An example of such agencies is the Environmental Protection Agency (EPA). This agency was created in 1970, if a standard is not met EPA has the authority to issue sanctions among other steps to ensure an environmental quality of life. The company needs to do something about this. The board of the company is Todd, Lloyd, and Richards. Todd is the legal council he firmly believes that the procedures for disposal of waste are efficient and that they are below the specified level in compliance with the Clean Water Act; thus he thinks the company should submit a story about this. Lloyd is certain that the acquisitions are without foundation, but he...
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...Running Head: Business Simulation Business Regulation Simulation LaToya Brown Law 531 Gale Francis July 19, 2010 Alumina is a $ 4 billion aluminum maker. Based in the United States; Alumina operates in eight countries around the world, with the U.S. accounting for 70% of its sales. Alumina has business interests in automotive components, bauxite mining, aluminum refining, and aluminum smelting. Alumina falls under the jurisdiction of region 6 with the EPA. (University of Phoenix, 2010). As a part of the alumina family, I am resolving allegations of a claim by Kelli Bates in conjunction with a violation of EPA practices. Alumina was cited five years ago for failure to comply with regulations for contaminating the city lake. The PHA levels in test forms were above the subscribed limit and Alumina was ordered to clean the lake up. When being cited for these issues, Alumina unsuccessfully showed that it did not have systems in place to deal with a crisis of this magnitude. As a result, alumina complied with the notice to clean it up and has since had problems with the EPA. (University of Phoenix, 2010). A report in the Erehwon Reporter featured Kelli Bates, a resident of the city. She claims that her daughter was stricken with leukemia from Alumina’s dumping carcinogenic effluents into the lake (University of Phoenix, 2010). Bates also believes that her daughter’s illness may be as old as the first violation with the EPA (University...
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...Bullies on the Job The video Bullies on the Job poses the question of whether or not psychological abuse is a form of harassment. The manager in a professional environment may utilize several measures to prevent intentional torts. The act of bullying may give way to torts related to mental distress, pain and suffering, and hostile environment First, a manager should lead by example. Setting clear expectations that bullying is not allowed will set the tone for the company. Employees should be trained on where to find information regarding the company’s bullying policy and acknowledge that they have read and understood the policy. In most cases a policy isn’t enough to deter negative behaviors. Asking for feedback and allowing employees to express their point of view is one a great measure to implement. In addition, when employees exhibit positive behaviors they should be recognized in a systematic manner. This will create a culture that fosters an optimistic corporate culture. BP Podcast The BP oil spill that occurred off of the Louisiana Gulf Coast is perhaps the worst oil spill to occur in history. It aroused a nationwide concern for the environmental strains placed on our ecosystem and placed a high profile spotlight on the legal considerations both a corporation and government should uphold to prevent and handle such situations. Risk management is both a preventative and situational measure that all organizations should strictly enforce. BP’s risk management department...
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...Business Regulation and Essential Risk Management Lamont Clark, Cristina Mancha, Bobby Jo Sonon, Gwendolyn Wilson, Arnie Zhang, Business Law/531 22 April 2012 John Fossum Business Regulation and Essential Risk Management Common law placed the risk of loss to goods on the party who held title to the goods. Article 2 of the Uniform Commercial Code (UCC) rejects this notion and adopts concise rules for risk of loss that are not tied to title. It also gives the parties to a sales contract the right to insure the goods against loss if they have an “insurable interest” in the goods (Cheeseman, 2010 p.296). Enterprise risk management is processes to achieve future strategic objectives try to control the results that uncertain factors cause, which are expected acceptable ranges that ensure and promote the realization of the overall interests of the organization. Enterprise risk management (ERM) framework is the integration concept on the basis of the internal control framework of Fraudulent Financial Reporting National Committee of Sponsoring Organizations Commission (COSO) belonging to the Treadway Commission in September 2004. ERM is participated by the Board of Directors, management and other employees, which uses in Strategy formulation and identifies possible potential impacts on matters of the enterprise. It also manages risks within the scope of its risk appetite. ERM provides reasonable protection for the enterprise to achieve the objective. ...
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...Recognizing and Minimizing Tort and Regulatory Risk Plan Jennifer Newcome Business Law 531 November 1, 2010 Bart Bodkin Word Count = 1,317 Recognizing and Minimizing Tort and Regulatory Risk Plan Alumina Inc. is an US-based aluminum maker. Their headquarters is situated on the fringes of Lake Dira in Erehwon; however it operates in eight countries. Alumina has business interests in automotive components and manufacture of packaging materials; bauxite mining, alumina refining, and aluminum smelting. Five years ago, Alumina was found to be in violation during a routine Environmental Protection Agency (EPA) compliance evaluation inspection when discharges of polycyclic aromatic hydrocarbons (PAH) were above the prescribed limits in test samples. This is also a violation of the Clean Water Act. In 1948, the Federal Water Pollution Control Act (FWPCA) was enacted to regulate water pollution by establishing water quality standards that define which bodies of water can be used for public drinking, recreation, propagation of fish and wildlife, and agricultural and industrial uses. Under the FWPCA, dischargers of pollutants are required to maintain monitoring equipment, keep samples, and keep records. This act is also referred to as the Clean Water Act. Alumina was in compliance, in part, by having the required monitoring equipment, keeping test samples, and recording the results of test samples. However, they were lax in the amount of PAH they allowed to pollute...
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