Regulatory Risks

Regulatory Risks

Danielle M Sosna

University of Phoenix

Regulatory Risks

As illustrated in the Business Regulation Simulation (2002), Alumina deals with several legal risks and opportunities. These examples presented in the Simulation shed light on several of the common torts and the risks associated with them, within the business sector.

Common Torts

There are different kinds of torts as described by Jennings (2006), in Chapter 10. These torts include the intentional tort, in which one party causes damages to another party intentionally. Negligence or unintentional torts are when damages are incurred, but there was no intent. As illustrated in the Business Regulation Simulation (2002), the Exxon Valdez caused harm to the ecosystem and the fishing industry in a region of Alaska, but it was unintended. Because this incident was an accident, these damages would fall under a negligence tort. In the example of Kelly Bates and the newspaper publishing false information about Alumina causing Kelly Bates’ daughters illness, in the Business Regulation Simulation (2002), the intent was to do harm to Alumina, making that an intentional tort. Bates could also be accused of defamation against Alumina. Defamation, as defined by Jennings (2006), in Chapter 10, is an untrue statement made by one party to another party about a 3rd party. Bates talking to the newspaper about Alumina would qualify as defamation. Also, the newspaper publishing the information would also be defined as libel, or written defamation. In Chapter 10, according to Jennings (2006), the five elements of defamation are, “a statement about a person’s reputation, honesty, or integrity that is untrue; publication; a statement that is directed at a particular person; damages; in some cases, proof of malice.” All of these conditions fit the case of Bates accusing Alumina of wrongdoing.

According to Jennings (2006), there are five elements of negligence. They are: the duty to act, breech of duty,...