Essay on Business Regulatory Simulation

1357 Words Nov 25th, 2010 6 Pages
Recognizing and Minimizing Tort and Regulatory Risk Plan

Jennifer Newcome

Business Law 531

November 1, 2010

Bart Bodkin

Word Count = 1,317

Recognizing and Minimizing Tort and Regulatory Risk Plan

Alumina Inc. is an US-based aluminum maker. Their headquarters is situated on the fringes of Lake Dira in Erehwon; however it operates in eight countries. Alumina has business interests in automotive components and manufacture of packaging materials; bauxite mining, alumina refining, and aluminum smelting. Five years ago, Alumina was found to be in violation during a routine Environmental Protection Agency (EPA) compliance evaluation inspection when discharges of polycyclic aromatic hydrocarbons (PAH) were above the
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Due to this violation, Alumina has raised the eyebrows of Kelly Bates, a resident of Erehwon. Bates claims the repeated contaminating with carcinogenic effluents into Lake Dira and the consumption of this contaminated water has been the proximate cause for her 10 year old daughter’s leukemia. This opens Alumina up to a lawsuit based on negligence. Negligence is an unintentional tort that makes a person or company liable for the harm that is a foreseeable consequence of their actions. In a negligence case the plaintiff must prove there is: 1) a duty to care—an obligation people or companies owe each other to not cause any unreasonable harm or risk of harm. 2) A breach of duty—the failure to exercise care; a failure to act a a reasonable person would act. Alumina was in violation of both of these if consumption of the contaminated water was the cause of the leukemia. A preventative measure for negligence is to exercise a duty to care with regards to the PAH levels in Lake Dira. Another preventative measure for this is to find another source of getting rid of PAH discharge. Erehwon also gets its dinking water from Lake Dira so they would not be at risk of even the minute levels of PAH interfering with the health of Erehwon’s residents. The necessarily inspections and regulations set forth by the EPA would have to be followed. As a result of these allegations, the Erehwon Reporter has picked up the story. Depending on

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