Recognizing and Minimizing Tort

In this paper, I will briefly give definitions of tort liability and regulatory risk. I will review our team’s findings from the simulation exercise on Alumina Inc. my intent is to incorporate some of the team member’s thoughts as they viewed the simulation, as well as highlight a few key points mentioned in the text in reference to tort liability and other regulatory risks. I will review some major issues and principles and discuss how to effectively identify and manage each one of them.

To begin with, what is tort liability and regulatory risk? “A tort is an interference with someone’s property that results in injury to that person or that person’s property” (Jennings, 2006, p. 367). There are three types of torts liability, intentional torts, negligence, and strict tort liability. There is a thin dividing line in differentiating between intentional and negligence tort laws. For example of an intentional tort is defamation whereas someone purposely made negative untrue statements about someone else with the intent to harm their reputation or career. However, with negligence statements, where made because they were repeating an untrue statement or something they heard and the intent was not to smear that person’s name, but the result can turn out with the same affect. Strict liability is geared towards product liability. In addition, “the law provides protection for us and our property through the law of torts, which is a way to recover for the damages done to us” (Jennings, 2006, p. 367). Furthermore, the EPA (Environmental Protection Agency) governs regulatory laws such as The Air Pollution Act, Air Quality Act, Clean Air Act; the EPA establishes the air quality standards.

Moreover, throughout the simulation a few tort liabilities and regulatory risk were identified such as torts of defamation and negligence. Negligence occurred when Alumina was citied for the violation of the Clean Water Act by EPA, based on their products and services the organization...