Recognizing_and_Minimizing_Tort_and_Regulatory_Risk

Recognizing and Minimizing Tort and Regulatory Risk 　 One of the most important things is for a company and/or an organization to identify and minimize tort liability and regulatory risk through preventive, detective and corrective measures. I will clearly identify how the simulation involving Alumina, Inc. was able to identify and manage these liabilities and risks with the proper management and preventative measures. To reduce the exposure to tort liability will be a major undertaking in operating a successful company or organization. There are three different types of tort liability: intentional torts, negligence and strict tort liability. Intentional torts are actions that happen then parties commit intentional acts. Negligence is when the actions of one party do not live up the minimum standards. Strict tort liability is absolute total liability for conduct with few, if any, defenses available. All three of these torts were visible in the simulation. The intentional tort was demonstrated through that of defamation and slander by a local resident, Kelly Bates. Bates knew that Alumina, Inc. had a previous legal encounter five years ago and went to a reporter in order to notify the public of, what she believed was intentional, the actions of Alumina, Inc. continuing to release toxins and pollutants into the environment. The media enjoys a qualified privilege, the freedom to publish information, accurate or not, as long as it is not published with malice or disregard to its truth. She believed that Alumina was negligent in maintaining the acceptable PAH levels set forth by the Environmental Protection Agency and this was the contributing factor to her daughter’s leukemia, which would be an example of strict tort liability as well as causations. The negligent actions of Alumina, Inc that Kelly Bates is indicating can lead to a negative impact with the public. There were other regulatory risks present in the simulation. Alumina, Inc. considered conducting a private investigation of the local making all of these accusations, Kelly Bates. The company will have to ensure that they are following the privacy principles as indicated at the core to the Privacy Act. This investigation can be very risky, lengthy and expensive and can lead to an invasion of privacy. By allowing the partial release of their prior violation record, Alumina, Inc. will improve their standing with the public, including Bates. The management team did the right thing by deciding not to go with the private investigation of Bates. The regulatory agency that is authorized to establish air quality standards is the Environmental Protection Agency (EPA). Once these standards are established, states are required to adopt implementation plans to achieve the federal regulations that were laid out. These state implementation plans have to be approved at the federal level and are a mandatory requirement. With Alumina, Inc. making sure to comply with the federal regulations set forth by the Environmental Protection Agency and maintaining the appropriate PAH concentrations levels, the can take the preventative steps necessary to reduce strict tort liability as well as negligence. Alumina, Inc. did an outstanding job setting up their own independent site study resources to test the water to make sure they are within the PAH levels. They can use this same team of people to do random testing daily, weekly or monthly to ensure they maintain these levels. By posting these results when the tests are done can reassure the public as well as their employees that they are meeting and exceeding the federal regulations. Contributory negligence is a complete defense to a product liability tort in negligence as well as injunctions. The court is the one who has the power to grant injunctions against those who are harming land, individuals or the environment. In the end, the decision to maintain a positive public appearance will definitely pay off for Alumina, Inc. Recognizing and minimizing these tort liabilities and regulatory risk early in the stage will enable Alumina, Inc. to remain successful and one of the leaders in their industry. Alumina Inc. decision to set up a college fund for Bates daughter as well as pay for medical bills, will definitely let the public know that they are concerned with doing the right thing all of the time and they are exceeding the federal regulations that have been set forth for their company.   References Jennings, M. M. (2006). Business: Its Legal, Ethical, and Global Environment, 7e. Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/TOC.aspx'assetdataid =423185a-158c-441e-86ed-49d4007613fb&assetmetaid=fda0e20e-1e89-409a-a18d- 84990dac524a. University of Phoenix. (2000). Business Regulation Simulation [Computer Software]. Retrieved from University of Phoenix, Simulation, LAW531 website. McClymonds, J. (2010, February 24). Thoughts on Business Regulation Simulation [Table Specifics - please add to ]. Message posted to http://classroom.phoenix.edu/afm213/ secure/view-thread.jspa'threadID=18961789