Tort and Regulatory Liability Plan

In the society today, businesses have to deal with regulatory risks like tort liability every day. Many businesses must take preventative measures that can reduce tort liability to keep their business successful. When businesses do not follow their local, state, and federal laws, it puts the business at a higher risk to be impacted by tort liability and it harms the company’s image and earnings. This paper will warn one about tort liability and the regulatory risks that Alumina, Inc., a United States organization that produces aluminum may face (Business Regulation Simulation, 2002). The table at the end of the paper will also show what legal issues and the principles follow Alumina, Inc.

Five years ago, Alumina, Inc. violated the environmental discharge norms in a routine inspection. During the inspection, it was found that the PAH concentration in test samples as higher than it should have been. At that time the EPA ordered Alumina, Inc. to fix the problem, to which they did promptly thereafter. Now a local resident is attempting to ruin Alumina’s good compliance record (Business Regulation Simulation, 2002).

In order for Alumina, Inc. not to receive more violations, the company must make sure they follow all local, state, and federal regulations, and laws. Managers should be able to identify regulatory risks through procedures and processes that they do through monitoring the PAH levels. Although Alumina, Inc. has a good compliance record, the public is still claiming that they are polluting the water in the local community, even though the spill was five years ago. Since Alumina, Inc. was negligent with their company, the public will be a large part of resolving the issue at hand. This is something that should not have been a problem if Alumina, Inc. had given the public access to their regulation improvements and their compliances in the last five years.

There are some ways that Alumina, Inc. could have avoided the negligence claim had they paid attention...