Legal Risk and Opportunity

NewCorp Legal Scenarios


Eileen Redmond

March 16, 2010


Michael Mills

What liability does NewCorp have?   What regulatory and compliance requirements and legal principles, such as statutory or case law, are relevant to this situation?

NewCorp is faced with two types of liability.   The first liability is that NewCorp is not complying with the requirements of The Occupational Safety and Health Act.   NewCorp must comply with the requirements of OSHA.   It’s NewCorp general duty of an employer to comply and provide a workplace free of hazards.   The workplace failed because of the noise of the machine.   Paul can make a complaint to OSHA.   OSHA regulates the acceptable noise level for workers exposed to loud noise in the workplace.   The permissible noise level limit is about 90 decibels.

The second liability is that Paul is likely to receive the state worker’s compensation.   The worker’s compensation law in the state of Vermont would provide benefits that NewCorp will have to pay Paul for his medical benefits, wage replacement benefits and permanency benefits, and vocational rehabilitation.

Third, Paul can sue NewCorp under the tort law and claim damages from NewCorp.   The legal principle is that of intentional tort.   In Paul’s case this would be working in harmful working conditions, which were brought to the attention of NewCorp but the safety officer did not recommend any action.   NewCorp duty to Paul was to take care of the harmful working conditions and inspect the noise level of the machine in the closed area to make sure it was not harmful to any employees.   If Paul decided to sue, he could force the suit of intentional tort and strict liability and get punitive damages against NewCorp.


Jennings, M.M. (Ed.).   (2006) Business:   Its legal, ethical, and global environment (7th ed.)

      [University of Phoenix Custom Edition e-Text], Mason, OH: Thomson.   Retrieved March 16, 2010, from LAW 531...