Week Two Discussion Questons and Participation Questions - Essay Example

Ironically Toyota prior to the scandal had one of the best quality track records in the industry. Legal risks can be minimized by including clauses in the sales contract of new vehicles that document how long a warranty lasts. Regulatory agencies can have a major impact on the everyday operations of an enterprise. A regulatory agency that oversees all manufacturing operations in America is the Environmental Protection Agency (EPA). The mission of EPA is to protect human health and to protect the environment.

One of the laws EPA enforces is the Clean Air Act. The Clean Air Act regulates air emissions from stationary and mobile sources (EPA, 2010). Due to the rigorous environmental standard in the United States certain multinational corporations preferred to establish subsidiaries in foreign location where the environmental laws are softer. This strategy can be used to evade environmental policies. Another environmental law that the EPA regulates is the Safe Drinking Water Act. This Act protects the quality of the water US citizens consume.

In poor underdeveloped countries such as the nations located in the Sub-Saharan desert there is major water scarcity and the quality of the water is extremely poor. The existence of regulatory agencies such as the EPA protects the quality of life of the people. In your discussion you mentioned that some corporations are able to evade environmental laws by moving to locations outside the United States. I believe this practice is unethical because these companies know that they are hurting the environment with polluting agents.

A way to stop this practice is for the United Nations to create a global environmental agency to oversee the activity of corporations. This way companies will have to adapt to the global laws which should help lower air, soil, and water pollution. Within your responses you mentioned that a way to deal with product liabilities is to establish warranty protocols. For example in the