Recognizing_and_Minimizing_Tort_and_Regulatory_Risk

Recognizing and Minimizing Tort and Regulatory Risk Alumina Inc. are best and widely known as an aluminum maker company. Within the years of existence they’ve totaled $4 billion in sales revenue. Stationed in the United States 70% of Alumna’s sales are obtained from the US market as the rest is derived from 8 international countries. Unfortunately Alumina wasn’t so fortunate. Five years ago they were found accountable of opposing Federal Laws and are currently facing tort liabilities. Due to all the current actions of complaints and lawsuits the company faces potential negative risks in their company. The plan is to manage tort liabilities and regulatory risks though preventive, detective along with corrective measures. The target is to assist Alumina and ease their liabilities and legal matters with the potential t get them back on their feet. Tort is a body of law that addresses, and provides remedies for, civil wrongs not arising out of contractual obligations. There are 3 different types of torts: Negligence, intentional and strict tort liability. Negligence torts are ones committed out of negligence and have no direct intention. An example would be driving carelessly and ending in an accident. An intentional tort is committed intentionally such as striking at another person. Strict liability is considered with a direct intention. It’s something done with consideration. There are also other torts such as personal and property. Insulting actions are measured as personal torts and trespassing is considered a property tort. Many businesses nowadays compete with tort liability and management. To operate a business effectively proper management protective measures are key limiting the business to be exposed to tort liability. The most noteworthy torts liability discovered in the case of Alumina were Defamation, liability and negligence. Strict Liability Strict liability can be the outcome of the breach of a ruling also considered a federal law. Alumina was accused of violating the EPA law also known as the Environmental Protection Agency. Alumina was at blame for causing people to become sick. The tort can be prohibited if the company reveals their protective measurements along with planning to evade any contamination accident. To ensure the public about environmental safety the Public Relation Department can enhance their education and adopt the majority of citizens and teach them policies, procedures and actions that will help prevent this situation in the future. Negligence With negligence accidents and possibly damages can occur to a party when the other party involved doesn’t perform business with negligible values. Alumina was charged with carrying out business carelessly with negligence which resulted in contamination of the lake water. This caused people to become ill and extremely upset. Could have this accident been prevented' A good way to prove this is show that Alumina did not act with negligence. In order to prove this, the company must reveal their technique in how they operate and conduct business showing the general public that this was a complete accident. Defamation A statement that is not true made by one party to the next party about another party is considered defamation. Alumina was publicly accused with claims that they were still polluting the water. This is the same charge 5 years ago that the company was found liable for. Since the incident Alumina has made drastic changes and is up to date and following federal regulations. In the belief of Alumina the accusation is unproven and is an insult to their business and employees. Defense Against Defamation An effective way to fight such an accusation is with a legal defense. With a false statement, truth is your best cure . As the claim is rooted in pervious meager performance by the company the public observation will be the key motivator is solving such issue. By following public awareness of federal regulatory improvements the liability could have been reduced significantly by Alumina over the last 5 years. In Conclusion Conducting and operating a business is not a simple task in spite of all the laws, rules, paper work, and regulations intended to assist the businessman. With a hostile market and a hectic business environment sometimes it can get uneasy for an industry. In can be incidental, but responsible for all of the hardships businessmen face are the clients. Reason for this occurrence is both businessmen and clients both consider they’re correct with support from laws, rights and regulations backing them up. References -EBOOK COLLECTION: Ch. 10 of Jennings, M. M. (2006). Business: Its legal, ethical, and global environment (7th ed.). Mason, OH: Thomson. - Yates, D. (2007, December 27). Definition And Use Of Tort Law. , 1. Retrieved from http://ezinearticles.com/'Definition-And-Use-Of-Tort-Law&id=896989