Essay about Riordan Compliance Plan Law 531 Final

2277 Words Jan 19th, 2010 10 Pages
Corporate Compliance Plan for Riordan Manufacturing

University of Phoenix Riordan Manufacturing is a profitable plastics manufacturer with annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 company with revenues over $1 billion. The following are some of the products produced by Riordan Industries: plastic bottles, fans, heart valves, medial stents, and custom plastic parts (Virtual Organization, 2009). This compliance plan will state the company's legal responsibilities and regulations necessary to continue earning a profit. The plan will address the laws affecting the plastic industry and guidelines to ensure management and employees understand and obey the laws. The focus of the
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According to the National Law Journal, 88% of lawyers prefer mediation as a way of resolving disputes. Mediation is a popular process to resolve conflicts between businesses (Jennings, 2006). Enterprise and product liability Riordan Industries wholly owns Riordan Manufacturing. Because of enterprise liability, when Riordan Manufacturing does not comply with laws and regulations,both Riordan Manufacturing and Riordan Industries are liable. Riordan Industries must ensure that Riordan Manufacturing does not create corporate liability for itself. Enterprise liability is mainly concerned with criminal acts, thus the compliance plan must address criminal law. The best way to limit the liability to Riordan Industries is to have a panel of managers between the two companies evaluate the risks of Riordan Manufacturing committing criminal acts. The panel should evaluate each step of the manufacturing process to verify compliance to laws, regulations, and criminal acts. An example of criminal activity would be illegal dumping of hazardous waste. The panel should also evaluate work performed by subcontractor's. All subcontractors contracts will be evaluated by the panel. Subcontractor's will be evaluated for possible risks and any past criminal infractions. Federal law states subcontractors are to be monitored by the prime contractor. Understanding the possible criminal risks of subcontractors is vital to the continued
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