This website uses cookies to ensure you have the best experience. Learn more

Business Regulation Simulation Essay

2401 words - 10 pages

Business Regulation Simulation
Alumnia Inc. is a $4 billion dollar company that operates in eight countries around the world with 70% of its sales in the United States. They are located by Lake Dira in the state of Erehwon. Alumnia Inc. business interests are in automotive components and manufacture “packaging materials, bauxite mining, alumina refining and aluminum smelting. Alumuna falls under jurisdiction of region 6” of the Environmental Protection Agency (EPA) (University of Phoenix, 2002). The company was cited by the EPA 5 years ago for a Polycyclic Aromatic Hydrocarbon (PAH) discharge in nearby Lake Dira. Five years later, Kelly Bates accused Alumina Inc. of contaminating the ...view middle of the document...

6). The regulation of the Clean Water Act of 1972 “sets goals to eliminate water pollution. Principally, these goals are to make the nation’s waterways safe for swimming and other recreational use and clean enough for the protection of fish, shellfish, and wildlife. The law sets strict deadlines and strong enforcement provisions, which must be followed by industry, municipalities, and other water polluters” (Reed, et. al., 2005, p. 11). A clean up was ordered by the EPA and Alumina complied. “The subsequent environmental audit reported the violation as corrected” (University of Phoenix, 2002).
Five years later, “a 38 year old mother, Kelly Bates, has accused Alumina Inc. of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents, and has alleged that consumption of the contaminated water is the proximate cause of her 10 year old daughter’s leukemia. Bates also alleges that her daughter’s disease may be as old as Alumina’s first instance of environmental law violation” (University of Phoenix, 2002). The legal issue for Alumina is twofold; first to deal with the allegations of corporate negligence for the release of PAHs effect on Kelly Bates’ 10 year old daughter and the second is to substantiate that the PAH levels are fine today. Alumina decided to conduct an independent study and it show that the PAH levels are 5 milligrams per liter and are within safe levels thus not in violation of the Clean Water Act (University of Phoenix, 2002).
Kelly Bates’ still looking for the root cause in her 10 year old daughter’s leukemia requested information under the Freedom of Information Act, 1966, to obtain the information on the PAH release from 5 years ago. A partial release of information was decided to protect company interests and not to disclose proprietary information. This gave time for Alumina to address community concerns and Ms. Bates. Ms. Bates has threatened to file “a million dollar personal injury lawsuit against Alumina Inc. to recover compensatory and punitive damages. Alumina’s negligent conduct, evident in the “serious violation” of environmental laws five years ago , is proximate cause of her daughter’s leukemia, bates alleges” (University of Phoenix, 2002). The legal issue is negligence. “Negligence is the failure to exercise the degree of care the law requires under the circumstances” (Reed, et. al., 2005, p. 18). Alumina’s failed to safe guard local residents by the harmful release of PAHs. In assessing the impact of the regulatory environmental on industry and organizational risks the release of PAHs clearly makes Alumina responsible for liability due to negligence. Alumina is confronted with three legal solutions; to offer her a trust fund to pay for medical expenses, seek arbitration or no negotiation and let Ms. Bates file a lawsuit.
Alumina’s senior staff chose to use arbitration. “In arbitration, disputing parties submit their dispute to a neutral third party, called an arbitrator. ...

Other Papers Like Business Regulation Simulation

Business Synopsis Essay

1113 words - 5 pages Auditing. Retrieved March 6, 2011 from American Arbitration Association (2007). About Us. Retrieved March 6, 2011 from University of Phoenix (2002). Legal Environment of Business – Business Regulation Simulation. from

Addressing International Legal and Ethical Issues Simulation Summary

598 words - 3 pages Addressing International Legal and Ethical Issues Simulation Summary In this paper, I will concentrate on several different issues proceeding into any legal binding business contracts involving international businesses. When proceeding into international contract agreements it is important to complete the proper research. Most countries have different laws and regulations that all businesses must follow when business is conducted in that

Alumina Violation of Epa Environmental Discharge Norms

1818 words - 8 pages communication between Alumina and Kelly Bates with the aim of avoiding litigation References Reed, Shedd, Morehead & Corley. (2004). The Legal & Regulatory Environment of Business 13e. New York, NY: The McGraw Hill Companies. University of Phoenix. (2008). Business Regulation Simulation [Computer Software]. Business Regulation. Retrieved February 20 2008, from University of Phoenix, rEsource, Simulation, MBA560—Enterprise Risk Web site

Business Regulation Similation

686 words - 3 pages Introduction This overview explores the key facts, regulations and legal issues in the Business Regulation Simulation for Alumina. Alumina is U.S. based company with global presence in eight countries. It attributes 70% of its profit through U.S. sales alone. The simulation provides an introduction to environmental regulation by stating that organizations have a responsibility to invest in technology for the purpose of regulatory compliance

International Trade

1845 words - 8 pages add more health risks over regular cigarettes. Indonesia states that the United State’s regulation on cigarettes discriminates and causes an unnecessary barrier to trade. Contending with this trade barrier is just one of several trade barriers. Many of the issues are quite fascinating because the issues are subject matter that the public would not think of. The International Trade Simulation shows four key points and some advantages and

Risk and Tort Management

1515 words - 7 pages minimize the costs to the company. A compliance team and a legal and communication will be able to minimize the risks effectively and take swift corrective action. Immediate action will prevent tort and violations from entering in litigation. A detailed plan to minimize risk will ensure the organization avoids unnecessary costs and maintains a good reputation. Resources Jennings, M. M. (2006). Business: It's Legal, Ethical and Global Environment (7th ed.). Mason, Ohio: Thomson. University of Phoenix. (2009). Business Regulation Simulation [Computer Software]. Retrieved from University of Phoenix, Simulation, Law531 - Bussiness Law website.

Cpa Uniform Paper

1809 words - 8 pages , and business law, and the skills needed to apply that knowledge. For Auditing and Attestation, Financial Accounting and Reporting, and Regulation sections,each there is a testlet called Task-based simulation. Task-based simulations are condensed case studies designed to test the knowledge and skills that are required of entry-level CPAs.The simulation is giving a candidate varies of tasks in order to test their accounting knowledge.Some tasks

Recognizing and Minimizing Tort and Regulatory Risk

957 words - 4 pages smelting. (Business Regulation Simulation). Alumina INC, belongs to the region jurisdiction six from EPA (Environmental Protection Agency), comprising the central region of the southern United States. (EPA, n.d.) Another of the qualities that has stood Alumina Inc., is the fact that the brand is facing serious accusations of violating environmental laws and because of this, he is accused by the death of a girl of 10 years old, and that environmental

Recognizing and Minimizing Tort and Regulatory Risk

963 words - 4 pages contamination. Research should have been performed to see about a more responsible method of discarding the hazardous materials. Direct causation in the simulation is due to the fact that the company had contaminated the waters of the lake. The contamination caused contaminates to infiltrate the local water supply and a 10 year old girl contracted leukemia. The company knew it was using toxic chemicals and the leak of materials should have

Legal Risk and Opportunity in Employment.Docx

1041 words - 5 pages Legal Risk and Opportunity in Employment Tester Pester LAW/531 November 7, 2010 Lame Duck Abstract This paper analyzes the legal principles and remedies behind the three scenarios described in the simulation. Legal Risk and Opportunity in Employment Legal Encounter One NewCorp hired Pat Grey as a property manager. NewCorp fired Pat after three months. Pat thinks it is not related to performance but other outside issues. NewCorp

Recognizing and Minimizing Torts

1110 words - 5 pages Recognizing and Minimizing Tort and Regulatory Risk There is an imminent necessity for organizations to recognize and prevent torts. In the following essay we will find the analysis of a simulation for a company called Alumina, indicating the legal matters and risks they are taking. Also we will discuss a preventive plan for a company in Puerto Rico and how the Puerto Rican government treats torts and regulations. The simulation of Alumina

Related Essays

Tort And Liability Essay

300 words - 2 pages Environmental Regulation is perhaps the most stringent area of government’s regulation in business. The government imposes great technology investment demands on the industry for regulatory compliance. One single act of irresponsibility can cost businesses greatly or be forced to close (Business Regulation Simulation, 2009). It is important to identify, manage, and correct torts and regulatory risks for Alumina, Inc. so legal issues do not arise

Recognizing And Minimizing Tort And Regulatory Risk Plan

628 words - 3 pages Recognizing and Minimizing Tort and Regulatory Risk Plan Environmental Regulation is perhaps the most stringent area of government’s regulation in business. The government imposes great technology investment demands on the industry for regulatory compliance. One single act of irresponsibility can cost businesses greatly or be forced to close (Business Regulation Simulation, 2009). It is important to identify, manage, and correct torts

Basic Concepts Essay

1325 words - 6 pages business to see what it will gain by losing in other areas of the business. In the simulation the company allowed a bunch of apartments to be sold at a higher cost, yet once the rates were decreased, the prices attracted more tenants. A decision made by a company to change the cost of a product solely depends on the marginal cost and revenue resulting changes. A price change should occur if marginal revenue has a greater value than marginal cost. An

Economy In The Housing Market Essay

967 words - 4 pages Economy in the housing market. Economics is a very importamt aspect of everyday life. It is the driving factor in the world of business and consumers. It is the general understanding of how the economy works and how the supply and prieing of goods are set up. One must understand economics and never take it for granted as it is a very important subject to learn about and comprehend. Through this simulation there were many interesting ares