Tort Liability

Tort liability is an area of business compliance which managers need to pay close attention.   A company can expose itself to tortuous claims in a variety of areas; however, the UoP business simulation provides a specific scenario with Alumina, Inc. wherein, individuals can see how specific areas of tort litigation can be minimized.   An old adage states, “The best defense is a good offense.”   But, what does that mean? In the scope of business, and specifically, minimizing liability, the statement best describes proactive measures employed by companies to reduce liability.   Liability, even with the best of plans, cannot be eliminated; at best, companies hope to reduce opportunities for tortuous claims, and minimize exposure to manageable claims.
Alumina, Inc. is a manufacturing company which exposes itself, by the very nature of its business, to strict adherence with environmental laws.   Environmental protection is a broad, expanding, and encompassing area of tort liability which has significant impact on the way in which Alumina functions.   Environmental protection is regulated by the federal government under the auspices of the Environmental Protection Agency (“EPA”) (epa.gov, 2010).   In that regard, the administration oversees the regulation of environmental standards, including enforcement. EPA standards are readily available and accessible.   To meet the goal of reducing liability, the first step which should be taken is to make these standards familiar to all employees, especially those in management roles.   Ignorance is not a valid defense; and, as such, Alumina is responsible for keeping all employees apprised of regulations and standards at all times.   Under the theory of Respondeat Superior, companies are responsible for the actions of their agents/employees.   In that regard, all employees should be informed of their duties and responsibilities.   Continued training and evaluation of employees is the first step in minimizing liability.   For example, if the...