Regulatory Risks Torts and Liabilities

Regulatory Risks Torts and Liabilities

Alumina Inc. is a manufacturer specializing in aluminum products. Companies like Alumina are regulated by the Environmental Protection Agency (EPA). The EPA’s mission is to “protect human health and the environment. To accomplish this mission we develop and enforce regulations” (United States Environmental Protection Agency, n.d.). Companies like Alumina must comply with both federal and state government mandated regulations. Failure to comply with these regulations could lead to legal claims, penalties, fines, and a damaged public image. The recent case of Kelly Bates versus Alumina is a good example of the possible risks presented by non-compliance. In this complaint, allegations of negligence, invasion of privacy, libel and defamation are amongst some of the accusations being made against Alumina. This complaint being the result of unacceptable levels of pollutant found in the lake near their factory, a situation which was immediately rectified. However, five years later, the complainant claims the polluted water caused leukemia in her daughter.

Funding prevention is far less costly than litigation. Legal liabilities can be prevented or minimized by putting safe guards in place. The following business regulation plan will identify legal issues and assist with preventive measures to avoid potential violations and litigation. Possible torts and liabilities the company might encounter are:

Strict Liability. This can result from the violation of a statute, public or federal law. Unfortunately, few if any defenses exist for strict liability. The best means of avoiding strict liability is to adhere to, without exception, all matters of law and policy. One of the most effective ways is to utilize all resources provided by the regulating agencies, such as the EPA which provides compliance assistance and a Risk Management Program (RMP). “Compliance assistance is most effective when used in an integrated strategy combining...