Risks and Torts

Many organizations contend with tort liability and management in the day-to-day business. The proper management and protective measures to minimize the organizations spotlight tort liability has become a key to efficient operating a business. This paper will identify the tort liability and regulatory risk of Alumina within a business plan to manage it. The prevention, detection, and corrective measures for each liability will be described. The best course of action to alleviate tort liability will be identified during this plan and the expected results of proper management for Alumina and any organization. In addition, an analysis of the simulation of Alumina Inc. aids in the recognition of the common torts and regulatory risks for companies. Alumina Inc. faces the torts and regulatory risks normal to businesses engaged in the discharging of chemical waste into waterways.

Alumina Inc. produces aluminum for the US market and eight international markets.   The United States based company is located in Lake Dira, in the State of Erehwon. The company achieves a sales volume of four billion dollars with 70% sales volume from their US market (University of Phoenix, 2007). The growth of Alumina Inc. depends heavily on complying with the environmental safety laws. Jennings (2006) stated, “When producing its products or providing it services, a firm has an obligation to do so in a manner that does not illegally affect the environment.” (chap.10 pg. 1 para, 1).

      The business simulation centered on Alumina; a company with previous liabilities that had action brought against the company five years ago. Alumina has current tort liabilities due to the previous lawsuit and recent complaints that compound potential risks to company. The University of Phoenix simulation states, “Environmental regulation is the most stringent area of government regulation of business” (University of Phoenix, 2006, para. 1). The Environmental Protection Agency (EPA), with the state...