University of Phoenix
LAW 531: Business Law
Group # MU09MBA05
Jason D. Fletcher
October 26, 2009
There were many companies in the past that have been destroyed by negligence, greed, and or corruption. Today many laws have been developed to keep organizations on the straight and narrow, and provide a means of protection for its employees and consumers. Enron was a great example of a big corporation that eluded laws and regulations that was set up to protect the corporation. Many would argue that there should be a more pro-active approach to monitor these companies who wish to disobey the standards that are put in place. Laws are created and put into place to ...view middle of the document...
The C.P.U.C, the California Public Utility Commission in which regulates private owned Electrical, natural gas, railroad and passenger companies stated that this fire was due to neglecting the maintenance of SDG&E structures. Negligence according to the text is “when the conduct of one party did not live up to a certain minimal standard of care” (Jennings). In order to be pro-active, detect and manage these risks of negligence SDG&E must put in place a corrective maintenance program. This program will provide yearly inspections on their structures including transformers, electrical power lines and its hardware. Through these inspections a log will be maintained and documentation stating the type of structure, and what work was completed on that structure. The inspections would be carried out internally, and also inspected by the CPUC. Alumina had to provide documentation and proof that they did not violate any rules by disclosing certain but not all documents to the EPA. SDG&E will provide maintenance followed by documentation to provide proof that the company is in compliance with the EPA and the CPUC. San Diego Gas andElectric will also provide a visual aid for the customers as a reminder that the structure was inspected and is in compliance. In Southern California dry wind sometimes blow in from the east and creates a risk for brush fires. SDG&E will provide a first response crew to stand by to ensure minimum structure damage and fires that may form from the electrical structures. According to SDG&E code of standards there will be no room for the negligence during operation.
In the utility business there are several vendors that provide free tools to companies to catch their business. When a company is interested in a certain product a vendor may offer a deal with that particular company to lock them in a long contract to assure their business. By contract the company must maintain use of the product until the contract is over. To prevent a breach of contract or Contract interference, SDG&E will only sign a short term contract with vendors dealing with tools and a five to ten year contract dealing with fleet. Contract Interference can be defined as “when parties are not allowed the freedom to contract without interference from third parties” (Jennings). There must be frequent monitoring of the products and no negotiations with any other vendors until the contract is free and clear. According to the text “ Texaco violated the contract interference law by offering a competing bid with Pennzoil while Getty Oil had agreed to sell a substantial portion to Pennzoil”(Jennings). Breaching a contract is an easy way to destroy the company’s credibility and also ruin future negotiations.
San Diego Gas and Electric maintain electrical structures inside man holes and or underground vaults. Within these structures water at times are full to the top....