Recognizing and Minimizing Tort and Regulatory Risk

Running head: RECOGNIZING AND MINIMIZING TORT AND REGULATORY RISK

Recognizing and Minimizing Tort and Regulatory Risk

University of Phoenix

Business Law

LAW 531

Thomas P. Hartnett, Esq.

November 23, 2009

Recognizing and Minimizing Tort and Regulatory Risk

Simulation Summary

The simulation begins with a brief discussion of the Exxon Valdez oil spill in the Alaskan waters, which destroyed the coastline. Not only was the coastline destroyed but also several other aspects of the life in these waters were affected. A major source of income was lost to the fishing industry. The oil spill killed and harmed other animals living in the waters. The Exxon Valdez story set the stage for the accusations that Environmental violations were also made by Alumina, Inc. by Kelly Bates. According to Ms. Bates, Alumina’s pollution of Lake Dira caused her daughter’s leukemia. People taking the simulation are given various scenarios that Alumina faces regarding pollution, and EPA violations that may lead to such a determination as the one by Ms. Bates.

Oral or spoken defamation or libel can occur in either an unwritten or written statement, which is the case in Ms. Bates accusations and the article written by the paper. Alumina has the burden of proof that these accusations are defamation. According to Attorneys*USA.com, “Defamation is the issuance of a false statement about another person, which causes that person to suffer harm” (Larson, 2005, p. 1). The simulation leads the reader to believe that defamation has occurred by both Ms. Bates, and the local paper. Some board members want to investigate Ms. Bates to see if she has made accusation or other related attacks on other organizations. As the board discusses this option, tem members determine that this will only make them appear as an unethical company and possibly open them up to invasion of privacy issues.

Legal Issues Identified

According to Jennings, “negligence Tort of accidental wrong...