Tort and Regulatory Risks

Tort and Regulatory Risks

Business Law/LAW 531

Tort and Regulatory Risks

Every business should know federal, state, local, and international laws associated with its operation. Not only should they know the laws, they should acquire an in-depth understanding of the regulatory and tort risks. Although these statements appear cumbersome upon a business, the consequences associated with insufficient knowledge in these areas can be devastating. The lack of awareness will create a dangerous potential to violate unknowingly any number of public, private, criminal, civic, substantive, procedural, common, or statutory laws (Jennings, 2006). Identifying and managing regulatory and tort risks through preventive, detective, and corrective measures can help companies like Alumina (UOP, 2009) avoid costly litigation and preserve the company’s public image.

Identifying regulatory risks is the first step in protecting Alumina. The Commerce Clause found in the U.S. Constitution Article I, Section 8, Part 3, provides Congress with the power to regulate interstate and international commerce (Jennings, 2006). The Supremacy Clause defines the relationship between federal and state laws, whereas, the Bill of Rights addresses which individual freedoms granted under the Constitution applies to businesses. These rights include the first amendment, commercial speech, corporate political speech, due process, equal protection, and substantive due process (Jennings, 2006).

Along with the laws governing commerce, supremacy, and rights, Alumina must also maintain awareness of the public and private environmental laws. The environmental laws provide both protections and requirements that specifically apply to the type of business Alumina conducts (UOP, 2009). Nuisance, nonattainment areas, emission offset, the bubble concept, effluent guidelines, and Maximum Achievable Control Technology are a few of the laws applicable to Alumina (EPA, 2009). In addition, Acts such as the Clean Air;...