Common Torts and Risks

Sandy peterson
University of Phoenix
LAW 531: Business Law
Group # MU09MBA05
Jason D. Fletcher
October 26, 2009
There were many companies in the past that have been destroyed by negligence, greed, and or corruption. Today many laws have been developed to keep organizations on the straight and narrow, and provide a means of protection for its employees and consumers. Enron was a great example of a big corporation that eluded laws and regulations that was set up to protect the corporation. Many would argue that there should be a more pro-active approach to monitor these companies who wish to disobey the standards that are put in place. Laws are created and put into place to act pro-actively and provide business with a legal passage of compliance. In my writings I will define what a tort is and discuss different types of torts such as negligence and contract interference that can create several risks for a utility such as San Diego Gas and Electric. Also I will provide detective and preventive ways to handle these types of risks. In my writings I will also discuss two environmental torts such as The Clean Water Act and the Oil Pollution Act that are very important in SDG&E everyday operation.
In order to understand business torts more fully, there must be a clear understanding or definition of the term Tort. A tort “is interference with someone or with someone’s property that results in injury to that person or to that person’s property” (Jennings). San Diego Gas and Electric is a utility company that provides electricity and natural gas to the San Diego county and southern Orange County in southwestern California. SDG&E have many similarities and responsibilities like the company Alumina in the simulation. Alumina was faced with many risks that could have destroyed the organization. In 2003 San Diego Gas and Electric was accused of starting the brush fires in the eastern San Diego that burned down many homes and destroyed structural property. The...