Contract Risk

Recognizing and Minimizing Tort and Regulatory Risk

      Businesses today try to run their day-to-day operation effectively enough to avoid tort liability. Developing the proper management and training practices help to avoid these liabilities.   With effective management, and education of managers/employees, business owners can believe their business is prospering. Negligent claims against a business can be detrimental, depending on the circumstance of the situation and the determination of the level of negligence. These claims against them can go through many options of litigation from mediation to a court deciding the outcome of a claim and each method of resolution can have a different outcome than the other. Businesses such as Alumina, can take measures to help them reduce or even eliminate negligent claims by implementing ways to detect them from happening. Alumina Incorporated, is a $4 billion dollar aluminum manufacturing company; most of their sales are derive from the United States.   Alumina manufactures products for automobiles, bauxite, and alumina refining. In the manufacturing industry, there are risks involved with the type of chemicals used, and how these chemicals effect the surrounding environment.   With these outlying issues there are tort and regulatory risks, which can be presented, but also prevented.   In learning team B we have discussed our discoveries from the simulation.   The common tort risks we found are the following:   Defamation, Duty of Care, and Freedom of Information. These are the current risks affecting Alumina.
      Five years ago, Alumina was found liable for polluting the local water supply. They were in violation of environmental discharge norms, by the Environmental Protection Agency (EPA ). Since then, Alumina made the necessary changes to remain in line with federal regulations. The current accusations presented by Kelly Bates are believed to be defaming from Alumina.   Mrs. Bates believes the company has repeatedly...