Recognizing and Minimizing Tort & Regulatory Risk Plan The purpose of the Recognizing and Minimizing Tort and Regulatory Risk Plan to explain how regulatory risks and common torts describe specific measures on how an organization can manage and minimize each individual risk. The preventive, detective, and corrective measures for each are explained below. The situation in the Business Regulation Simulation is that Alumina Inc. was involved in some regulatory issues and Alumina Inc. social responsibility as a result of hazardous waste.
University of Phoenix simulation states, “Environmental regulations is perhaps the most stringent area of government regulation of business” (Business Regulation Simulation). Alumina Inc. is a four billion aluminum maker that operates in eight countries around the world based with 70% from the USA. Alumina Inc. interest includes interest in automotive components, manufacture of packaging materials, bauxite mining, alumina refining and alumina smelting. The location mentioned in the simulation is around Lake Dira in the state of Erehwon Region 6 of the Environmental Protection Act (Business Regulation Simulation).
Alumina Inc. is now being accused of contaminating the water in Lake Dira with carcinogenic effluents. These contaminations lead to a multimillion dollar lawsuit against Alumina Inc. by Kelly Bates a local resident who believes that her ten year old daughter received leukemia due to Alumina Inc. neglect. This incident was the only environmental regulation incident that Alumina Inc. has ever had and the company has worked hard to keep a good environmental regulation report (Business Regulation Simulation).
The Environment Protection Act is a federal agency responsibility for enforcement of environmental laws at the federal level (Jennings, 2006). Alumina Inc. was subject to torts. The Webster’s dictionary defines tort as “a wrongful act other than a breach of contract for which relief may be obtained in the form of damages or an injunction” (Merriam-Webster Online dictionary, 2008). The company took action to deal with their failure to comply with the Environmental Protection Act. Although the accident did happen it, was still very important for Alumina Inc. o repair and remain in a respectful light in the community. Alumina Inc. should be aware of the known risks that exist within the organization that will affect the health and safety of the workforce environment and the community. Learning Team A reviewed and identified the following regulatory risks. The list of tort and regulatory risks are Clean Water Act, Clean Air Act, Toxic Control Acts, Freedom of Information Act, Confidentiality of Business, Defamation, Invasion of Privacy, Strict Liability, and Negligence.
The first key factor in the simulation is a set of regulations that all work together, the federal government places regulations on the emissions in various water sources, permissible substances in the air and the use of solid waste and disposal. Alumina Inc. violated all three of these regulations thus resulting in contaminants releasing into the air and soil, which will also affect the water. The swift cleaning of the spill was a corrective measure in which Alumina needs to review all available industry standards. Alumina should conduct random surveys on a quarterly basis to ensure compliance with all EPA standards.
This will allow Alumina Inc. to address potential issues in an effective, timely manner. The second key factor in the simulation is in regard to the second key factor in the simulation is in regard to the Freedom of Information Act states that a citizen can request information related federal agencies and corporations among others (Jennings,2006). This factor was used when Bates requested to see the environmental audit report. Alumina responded by allowing partial release of the environmental audit report under Exemption 4 of the Freedom of Information Act Confidentiality of Business.
Alumina upper management brought up the idea of aquiring an investigation on Bates. Upper Management voted to veto the idea because of the Invasion of Privacy Act. This act is a tort that reserves the right to privacy and to be left alone and not have personal matters publicized. However, Alumina Inc. may have has had a case of Defamation with the Erehwon Reporter if they had not retracted their double headed editorial entitled Skeletons in Alumina’s Closet (UOP Business Simulation). Libel defamation is defined as defamation in written form. The last key factors are that of negligence and strict liability.
The negligence identified by Alumina Inc. was Breach of Duty. Breach of Duty is defined as “failure to perform some promised act or obligation” (Jennings, p. 388, 2006). Alumina has the responsibility to produce its products within the guidelines of the EPA so as to protect the environment, the community, and its workers. Since the clean up Alumina has changed it, procedures and set up several safety rules and regulations. Team A believes that because of this it was the result of a strict liability tort that states that liability requires compensation for an injury regardless of fault or prior knowledge.
Alumina agreed to reimburse Bates for the past medical treatments for her daughter and agreed to a lump sum payment for future medical treatment and an education fund in the event that the daughter recovers and attends college. In conclusion, Alumina Inc. managed the Clean Water and Air Act, and Toxic Control Act by first cleaning up their contaminating in a timely manner, implement more times in the year to survey these areas to keep the in regulation with the EPA. The Freedom Information Act, managed by Alumina Inc. nly giving information that was not in violation of their rights under the Confidential Business exemption 4. Making sure the community understands Alumina Inc. efforts are only for the well being of the environment. Strict liability and negligence are managed by going into arbitration with a third party mediator. Alumina Inc. took responsibility for their part in the harming of the environment, which may have caused Bates 10-year olds leukemia. References Jennings, M. M. (2006). Business: It’s Legal, Ethical, and Global Environment (7th ed. . Mason, OH: Thompson/West. Retrieved December 21, 2009. Team A. (2010, January 17). Week two: Learning Team notes. Message posted University of Phoenix Learning Team forum, LAW/521—Business Law course website. Torts. (2010). In Merriam-Webster Online Dictionary. Retrieved January 17, 2010, from http://www. merriam-webster. com/dictionary/torts University of Phoenix. (2010). Business Regulation Simulation . Retrieved from University of Phoenix, Simulation, LAW521—Business Law course website.
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