Recognizing and Minimizing Tort and Regulatory Risk

Recognizing and Minimizing Tort and Regulatory Risk Plan

LAW 531

April 24, 2011

Judy Gray

Recognizing and Minimizing Tort and Regulatory Risk Plan

Many organizations deal with tort liabilities that are associated with business regulations every day; however, if companies can effectively minimize the most common risks and identify preventive measures, the organization can manage a more ethical and efficient business. In this paper the subject will identify the most common torts and risks found while completing the simulation for Alumina, Incorporated. This paper will explain how each tort identified will be managed through prevention, detection, and corrective measures. The legal issues and principles documented in this paper have been identified and discussed in collaboration with the members of Learning Team C.

History of Alumina

Alumina is a four billion dollar organization that operates in eight countries around the world, 70% of the company’s sales from the Unites States. Alumina’s business interests are “automotive components and manufacture of packaging materials, bauxite mining, aluminum refining, and aluminum smelting” (University of Phoenix, 2004). Alumina falls under the jurisdiction of region 6 of the Environmental Protection Agency (EPA) that serves Arkansas, Louisiana, New Mexico, Texas, and 66 Tribal Nations (Unites States Environmental Protection Agency, 2011). The EPA’s job is to regulate and protects the nation’s air and water. Five years ago Alumina was reported to be in violation of a routine EPA compliance evaluation; the PAH (poly aromatic hydrocarbons) concentration in water samples was above the prescribed limit and in violation of the Clean Water Act (CWA) of 1972. The Clean Water Act establishes water pollution control standards and “establishes water quality standards” (Cheeseman, 2010, p. 707). Consequently the EPA ordered a clean-up; to which Alumina complied, and the audit was reported as corrected. However,...