Recognizing & Minimizing Tort and Regulatory Risk

LAW531 Week 3: Recognizing & Minimizing Tort and Regulatory Risk

LAW531 Week 3: Recognizing & Minimizing Tort and Regulatory Risk

With businesses, like Alumia from our class simulation (University of Phoenix, 2002). it is possible to identify and manage tort liability and regulatory risks through preventive, detective, and corrective measures. A couple of the tort liabilities presented in the simulation was negligence on the part of Alumina and possible defamation from Kelly Bates directed towards Alumia. Our text also includes many other examples of tort liability and regulatory risks to be aware of. Since our country is very concerned with business practices, product safety, and environmental concerns it’s become an ever increasing responsibility on the part of business owners, managers, and employees to protect the business from legal issues that might arise in the normal day to day practices and processes at the business.

In the simulation example of Alumina, it was uncovered that the business might have been negligent concerning their violation they had five years ago. Now, Kelly Bates claims that her daughter has leukemia due to the consumption of water with carcinogenic. This would be considered water pollution and it is regulated by the federal government. (Moody Jennings, 2006, p. 466) For Alumina, based on their previous violation one of the preventative measures they could have had in place was testing the water every year for contaminants and ensuring they stayed within the federal environmental standards. This would have provided immediate assurance in this case and would have dropped it immediately. Instead the testing was used as detective measure to determine if Kelly’s claim had any substance. Additionally, Alumina could take other steps to gain the respect of the community for their safety and environmental practices by being more involved in the community from the start. An example of this preventative measure might be to...