P A R T P A R T Regulation of Business Administrative Agencies The Federal Trade Commission Act and Consumer Protection Laws Antitrust: The Sherman Act 11 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

P A R T P A R T Regulation of Business The Clayton Act, The Robinson-Patman Act, and Antitrust Exemptions and Immunities Employment Law Environmental Regulation 11 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Environmental Regulation PA E TR HC 52 "Every human has a fundamental right to an environment of quality that permits a life of dignity and well-being." United Nations Conference on the Human Environment

Learning Objectives  The development of environmental regulation  Air pollution regulation  Water pollution regulation  Waste disposal regulation

Definition of Pollution  Pollution is any substance in the environment that endangers human welfare  Toxic substances in pollutants linked to:  Carcinogenesis  Mutagenesis  Teratogenesis  Behavior disorders Bald eagle faced extinction due to mutagenic effect of DDT

Overview of Environmental Law  U.S. Environmental Protection Agency (EPA) was created in 1970 to protect human health and the environmentEnvironmental Protection Agency  Principal sources of environmental law:  Civil (Common Law) Actions  Federal Regulation  State, Tribal, and Municipal Regulation  International Treaties and Conventions

Civil Actions  Person may be liable for nuisance if he used property in a manner that unreasonably interferes with another’s rights to use or enjoy their property  Person may be liable for negligence or strict liability if he failed to use reasonable care toward a party whose injury was foreseeable and caused by the lack of reasonable care

 Federal environmental policy is achieved by statutes implemented by federal, state, and tribal agencies, and programs designed to regulate the environment within each respective jurisdiction  Litigation, injunction, and penalties (civil & criminal) are possible consequences of violating environmental laws Federal Regulation

Nature of Environmental Law  Most environmental laws are implemented through permitting programs that establish pollution limits  Thus, environmental laws do not prevent pollution, but set pollution limits and create a system to compensate for environmental harm  Subject of laws: health and safety, pollution, conservation efforts, environmental damage

Test Your Knowledge  True=A, False = B  Pollution is any substance in the environment that endangers human welfare.  States and Indian tribes may enact and enforce environmental laws.  Environmental law prevents pollution.  Violating an environmental law may result in a civil penalty, but cannot be a crime

Test Your Knowledge  Multiple Choice  The sources of environmental law include: (a) Federal legislation enacted by Congress (b) Federal agency regulations (c) State and tribal environmental law enacted pursuant to state and tribal legislative bodies (d) All of the above (e) All of the above plus international treaties

Thought Questions  Why is environmental law necessary? Is environmental health a human right?

OVERVIEW OF FEDERAL ENVIRONMENTAL LAWS

National Environmental Policy Act (NEPA)  NEPA requires federal agencies to prepare an environmental impact statement (EIS) for major federal actions significantly affecting the quality of the human environment  EIS must analyze the impact of proposed action on environment, expected adverse effects, practical and feasible alternative methods, any irreversible effects possible

Air Pollution Programs  Primary law: Clean Air Act  Goal: improve National Ambient Air Quality through standards (NAAQS)  Focus is controlling pollution from mobile sources and stationary sources by issuing permits to polluters “End-of-pipe” air emissions at paper mill

 Each state must develop state implementation plan (SIP) for meeting national ambient air quality standards  State environmental agencies issue permits to companies that emit pollutants specifying type of pollutants allowed and amount  Act enforced by agency action and citizen suits against polluters who violate law Clean Air Act Implementation

International Environmental Law  The Clean Air Act specifically supports U.S. obligations under the Montreal Protocol, an international agreement to reduce air pollution and ozone-depleting substances Pulp and paper mill

Water Pollution Programs  Wetlands, Ocean, and Coastal Zone Pollution  Groundwater & Drinking Water Protection  Wastewater Acid leachate pond near mining operation

Primary Statute: Clean Water Act  Clean Water Act (CWA) goals:  Ensure that navigable water is safe for drinking, fish & wildlife protection, and recreational use  Eliminate or limit discharge of pollutants into coastal and navigable inland waterways

 For non-point and point sources, EPA sets CWA water quality criteria or standards  Every industrial or municipal facility must apply for a National Pollutant Discharge Elimination System (NPDES) permit to discharge pollutants into inland waterways or oceans  Generally, state agencies establish standards for state water bodies and issue permits Clean Water Act Standards

Wetlands  Section 404 of the Clean Water Act (CWA) protects wetlands by requiring a permit from the Army Corps of Engineers before dredged or fill material may be discharged into waters of the United States Endangered green pitcher plant found in some southern wetlands

 Primary Laws:  FIFRA  TSCA  RCRA  CERCLA Land Pollution Iron Mountain Superfund site in California caused by acid mine drainage

Pesticides & Toxic Substances  Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) r egulates use of pest control chemicals, from food growth to food packaging, to minimize presence of pesticides in consumable foods  Toxic Substances Control Act (TSCA) requires anyone planning to sell or market chemicals to first determine effect on human health and the environment

 In a cradle to grave regulatory system, RCRA and CERCLA regulate storage, disposal, and remediation of hazardous substances  Resource Conservation and Recovery Act grants EPA power to regulate the monitoring, transporting, storage, treatment, and disposal of solid waste and hazardous waste  Tracking of substances from creation of waste through disposal or treatment Waste Disposal Laws

CERCLA  Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980, or Superfund, authorizes EPA to ensure clean-up and remediation of hazardous waste sites and assign liability for clean-up costs to any potentially responsible party (PRP)  Current owners or operators, former owners or operators, arrangers for treatment or disposal of hazardous substances, and transporters

Conservation Efforts  A number of laws, such as the Endangered Species Act, attempt to identify, list, and protect threatened or endangered species  See U.S. Fish & Wildlife Service webpageU.S. Fish & Wildlife Service  Convention on International Trade in Endangered Species (CITES) prohibits trade in threatened or endangered species, whether animal, plants, or parts of animals or plants Convention on International Trade in Endangered Species

Environmental Management  Partly because of the regulatory web and partly for corporate social responsibility, many companies implement an environmental management system (EMS)  Examples include ISO 14001, Responsible Care, and Smart WoodISO 14001Responsible CareSmart Wood

Test Your Knowledge  True=A, False = B  NEPA applies only to federal agencies.  The Clean Air Act applies to mobile and stationary sources of pollution.  One goal of the Clean Water Act is to eliminate or limit discharge of pollutants into navigable waterways.  Section 404 of the Clean Water Act (CWA) protects wetlands

Test Your Knowledge  True=A, False = B  Both RCRA and CERCLA establish a cradle to grave regulatory system for hazardous waste.  Retroactive laws are always unconstitutional.  Only the U.S. EPA may enforce the Clean Air Act or Clean Water Act.  RCRA requires companies to track and monitor hazardous waste from creation through disposal or treatment

Test Your Knowledge  Multiple Choice  An environmental impact statement must analyze: (a) The impact of the proposed action on the environment (b) Any expected adverse effects of the action (c) Practical and feasible alternative methods (d) All of the above (e) Both A and B only

Test Your Knowledge  Multiple Choice  A potentially responsible party may be: (a) A current owner of the facility (b) A former owner of the facility (c) The plant manager who arranged for the disposal of hazardous substances from the facility (d) The company that operates the facility (e) All of the above

Thought Question  Given technological improvements in alternative energy (wind or solar power, biofuels), does a company have a social responsibility to use the best available technology? Anaerobic bioreactors for sludge digestion and methane production in Kiel, Germany