Recognizing and Minimizing Tort and Regulatory Risk Plan

Topics: Tort, United States Environmental Protection Agency, Regulation Pages: 4 (1441 words) Published: June 20, 2010
Recognizing and Minimizing Tort and Regulatory Risk Plan

Business Law
June 14, 2010

Recognizing and Minimizing Tort and Regulatory Risk Plan
Organizations in today’s business world must deal with regulatory risks such as tort liability daily. Proper management and preventative measures can reduce a business’s tort liability and remains the key to a successful business. Federal and state laws and regulations are enforcing severe fines and penalties for damages. Failure to comply with local, state, and federal laws and regulations can effect a business through assets, earnings, and image. Businesses allocating resources to identify any existing regulatory risks and implementing action plans can avoid possibilities of non-compliance of government regulations and tort liabilities. The paper will cover tort liability and regulatory risks of Alumina, Inc. a United Stated based organization operating as a manufacturer of packaging materials, bauxite mining, alumina refining, and aluminum smelting (University of Phoenix, 2010). The business simulation states that Alumina, Inc. was found to be in violation of environmental pollution during a routine Environmental Protection Agency (EPA) compliance evaluation inspection five years ago (University of Phoenix, 2010). PAH levels were above the legal limit and a cleanup was ordered by the EPA. Alumina, Inc. complied with the EPA orders and an audit report concluded the violation was corrected (University of Phoenix, 2010). Alumina, Inc. did not make plans for prevention of this type of regulatory risks or future torts from reccurring. Kelly Bates has accused Alumina, Inc. of water contamination of Lake Dira with the cancer causing chemical PAH, and has stated the cause of her daughter’s leukemia is because of the consumption of the water (University of Phoenix, 2010). Alumina, Inc. has claimed the use of state-of- the-art technology for toxic waste cleanup as well as compliant with the Clean...

References: Chesseman, H. (2010). Business Law: Legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Scheytt, T., Soin, K., Sahlin-Anderson, K., & Powers, M. (2006, September). Introduction: Organizations, Risk and Regulation. Journal of Management Studies, 43(6). Retrieved June 14, 2010 from Business Source Complete database.
The Freedom of Information Act. (2010). The National Security Archive. Retrieved June 14,2010, from
United States Environmental Protection Agency. (2000). Federal Register. Retrieved June 14, 2010, from
University of Phoenix (2010). Business Regulation Simulation [Computer Software]. Retrieved June 14, 2010, from University of Phoenix, rEsource, Simulation, LAW531-Business Law Web site.
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