Recognizing and Minimizing Tort and Regulatory Risk Plan

1432 Words Jun 11th, 2010 6 Pages
Recognizing and Minimizing Tort and Regulatory Risk Plan

Business Law
LAW531
June 14, 2010

Recognizing and Minimizing Tort and Regulatory Risk Plan Organizations in today’s business world must deal with regulatory risks such as tort liability daily. Proper management and preventative measures can reduce a business’s tort liability and remains the key to a successful business. Federal and state laws and regulations are enforcing severe fines and penalties for damages. Failure to comply with local, state, and federal laws and regulations can effect a business through assets, earnings, and image. Businesses allocating resources to identify any existing regulatory risks and implementing action plans can avoid possibilities of
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The false article harmed Alumina’s reputation and image in such that the organization can be rewarded by a court of law for the damages. The American Scientific Society (ASS) proved that the increase in PAH levels was due to increased boat traffic in Lake Dira. Presented is enough evidence to prove defamation of character has been committed on Alumina, Inc., but going to trial is a lengthy and costly route. Alumina, Inc. decided that mediation would be the best route to solve the dispute for both parties involved. Both parties settled on reimbursement of medical expenses for the daughter, an education fund if the daughter survives leukemia. Bates agreed to sign a release of all claims and strict confidentiality agreement (University of Phoenix, 2010). The simulation showed negligence to be the most common theory under which Bates based her complaints. Bates claimed Alumina failed to comply with strict EPA regulations that caused her daughter’s illness. Throughout the simulation Bates accused Alumina of contamination the water of Lake Dira of which her daughter had consumed. Alumina’s side of defense states the contamination problem was corrected five years ago and was not the cause of Bates 10-year-old daughter’s illness. In fact, the scientific society report shows the increase in PAH levels are due to the increase of boat traffic on the water. Alumina can show that the PAH discharge levels is well within the legal limits of the EPA.
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