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Submitted by mikejw on June 7, 2008
Category: Business
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Business Regulation Simulation
Michael Wiler
University of Phoenix
Introduction
Alumina Inc. is a 4 billion aluminum maker based in the United States. Alumina business interests are automobile components and manufacture of packaging materials, bauxite mining, aluminum refining and aluminum smelting. Alumina, Inc operates in eight countries around the world with 70% of their business being in the United States. The company is located around Lake Dira in the state of Erehwon. Region 6 of the EPA has jurisdiction over Alumina, Inc (University of Phoenix Business regulation simulation). Alumina Inc is a company that faces a multimillion dollar personal injury lawsuit from a local resident who claims that five years ago alumina violated environmental regulations which is believed to be the cause of leukemia in the residents’ ten year old daughter. This incident five years ago is the only environmental regulation incident Alumina has ever had. The company has enjoyed a good overall environmental regulation compliance record (UOP Business Simulation). Environmental regulation remains the most expensive area of Government’s regulation of business (Reed, 2004). Regulatory law concerning business consists of Antitrust, The Constitution, Securities regulations and environmental regulations. The regulation that is looked at in this business simulation concerns environmental laws. Environmental laws are administered at the federal level by the environmental protection agency. Since many laws provide for joint federal-state enforcement many states have strong environmental agencies (Reed, 2004)
Key facts, regulation and legal issues
Five years ago Alumina Inc was reported to be in violation of environmental regulations. Alumina discharged into Lake Dira was above EPA standards. This was discovered in a routine EPA compliance inspection. The PAH concentration sample was above the limit. The EPA...
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