Recognizing and Minimizing Tort and Regulatory Risks
August 10th, 2009
University of Phoenix
LAW/531 – Business Law
In today’s business world, most organizations are continuously challenged with tort liability and regulatory risk management in their day-to-day business. Consequently, effective organizational management by means of preventive, detective and corrective measures is imperative in limiting an organizations exposure to tort liability. The following paper will provide a plan for a company similar to Alumina, Inc. explaining how regulatory risks such as tort liability can be identified and managed through preventive, detective and corrective measures.
A tort can be described as a negligent or intentional wrong doing to someone and/or someone's property that can result in an injury to that person or damage to the person's property. Legally, torts are called civil wrongs, as opposed to criminal ones. There are three types of tort liability that can notably impact an organization regardless of the industry. The three types of tort liability are intentional torts, negligence, and strict tort liability.
• “Intentional Torts are the harms that results when parties commit intentional acts” (Jennings, 2006, p.368).
• “Negligence Tort is when the conduct of one party did not live up to a certain minimal standard of care we are all expected to use in driving, in our work, and in the care of our negligence”(Jennings, 2006, p.438).
• “Strict Tort Liability can result from public policy issues” (Jennings, 2006, p.440).
Alumina Inc., is a $4bn aluminum manufacturer organization in the United States located on Lake Dira, Erehwon. Throughout the years Alumina Inc. has been able to maintain a good overall environmental regulation compliance record. However, five years ago Alumina Inc. was cited for non-compliance with environmental regulations, PHA concentration levels samples were above prescribed limit set by the...