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Recognizing and Minimizing Tort and Regulatory Risk Plan University of Phoenix May 30, 2011

Recognizing and Minimizing Tort and Regulatory Risk Plan Organizations manage with legal liability and tort administration every day. Preventative measures and proper administration extends the organizations exposes tort accountability, which defines an effective business. Identifying the legal responsibility and regulatory risk of Alumina were provided during the information throughout the simulation. Team members were asked to provide a collaboration of tables with the essential information about Alumina Inc. As a management team, we described corrective, detection, and prevention measures. The primary action to reduce tort accountability should identify a plan and the expectations of the results regarding the proper management for Alumina. The best route of action is to alleviate any tort liability that can be identified during this situation, and assist any determination within the management for Alumina. The business regulation simulation discussed a company called Alumina Incorporation. This company was formerly accused of liabilities that happened five years ago. The current tort liabilities are from the recent complaints and previous lawsuit. Learning team C has reviewed and recognize the risk, the regulatory risks are: First Amendment, Defamation and Freedom of Information Act (FOIA). These risks are relevant and are impacted when compared to Aluminas former and current liabilities. Kelly Bates accused the company of still polluting the local water (Lake Dira) supply in order to tie this to her daughters illness. About five years ago, a similar case was evolved and Alumina was found legally responsible. The company has made all the essential changes and is complying with the federal regulations. The allegation that Alumina is being accused of is considered defamation. The allegation has actually caused negative publicity for the company and Alumina is working hard to prevent their company from being displayed in a negative light. The allege stems from a prior poor

performance that the company dealt with in the past, Kelly Bates accuses Alumina of causing her 10-year old of having leukemia. The trouble that Alumina experienced could have been eliminated by considering public awareness of federal government regulations. This liability could have been avoided by Alumina by allowing public awareness of federal regulatory compliance and improvement. The preventative measure could have kept a dependable assurance in the organizations business practices. Completing the preventative measures could have eliminated the threat of defamation brought on by Kelly Bates. Aluminas failure to complete a successful preventative measure, they found themselves needing to furnish detailed information based on the accusation. Separating the claim will be the first process and verifying Aluminas responsibility comparing to the claim. Aluminas first problem is that initially they did not want to publish their federal regulation scores that show the level of compliance. If Alumina would have allowed the publication of these records, Kelly Bates would not have came forward as this would have put a stop to her claim. Showing the records would have provided doubt in her opinion of accusation of the pollution and permitted Alumina more time to provide any evidence in writing before losing the publics impression. By initiating and exploring group investigate claims and analyzing Aluminas principles that can pin-point and clarify the accountability of the issues. Aluminas is following this compliance, and these processes will allow the company to move to a recuperative phase of resolving the issue. Alumina can publish the findings of the federal and probing findings that can ensure that the claimant (Kelly Bates) should be satisfied. The First Amendment right in reference to Alumina is that they should promote their services and products which permit uncertain results for nonfactual information. Kelly Bates brought a claim to the EPA because of the environment and harm

that it was allegedly causing her 10-year old daughter. The results are from the data regarding Aluminas complaints that is available to the public. Aluminas Public Relations (PR) department should scrutinize and consolidate all information before it is sent out to the public. The PR must verify the publics perception of the information that is presented, prior to its release. The information that is provided to the public can bring out any neglect that the public is feeling. When Alumina responds, it should respond with empathy, and optimistically no negative perceptions should come across. Any negative perceptions that were brought to the public should cease and instantaneously disseminated to the public or the affected parties to demonstrate integrity. Aluminas focus is to gain back its trust. Kelly Bates and her lawyers requested the release of all Aluminas documentation of the compliance (federal regulations standards) over the past five years. Kelly Bates wants to file a million dollar personal lawsuit for the health of her 10 year-old daughter. Aluminas should be careful on how it responds to the allegations; the company is protected under the Freedom of Information Act (FOIA). Roger Lloyd initially did not want to disclose information about the company and Arthur Todd (Legal Counsel) advised that withholding information could be critical. Reports came in and statistically; Alumina was not causing any water pollution's it was due to the traffic. Once these reports were divulged Alumina is cleared of any accusations. Since Kelly Bates announced a lawsuit against Alumina, the best way to solve this is to seek intervention from the (AAA) American Arbitration Association. This suggestion came from Roger Lloyd; who states that this will be a great for mediation (quick and cheaper). The AAA will provide the necessary steps in trying to solve the crucial issues that persist with the claimant and Alumina.

The collaboration table that learning team C conducted provided direction. Learning team C also, analyzed the three identified risks as corrective, detective and preventative measures. The options of each measure can identify the best possible choices and identifications. Conducting and providing managements can be risky and vital to create revenue; without planning and anticipating the risk factors on projects an organization could carry a massive liability.


Cheeseman, H. (2010). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed.). UPPER SADDLE RIVER, NJ: Prentice Hall.