Let R-x denote the group of units of an associative algebra R over an
infinite field F. We prove that if R is unitarily generated by its nil
potent elements, then R-x satisfies a group identity precisely when R
satisfies a nonmatrix polynomial identity. As an application, we exami
ne the group algebra FG of a torsion group G and the restricted envelo
ping algebra u(L) of a p-nil restricted Lie algebra L. Giambruno, Sehg
al, and Valenti recently proved that if the group of units (FC)(x) sat
isfies a group identity, then FG satisfies a polynomial identity, thus
confirming a conjecture of Brian Hartley. We show that, in fact, (FG)
(x) satisfies a group identity if and only if FG satisfies a nonmatrix
polynomial identity. In the case of restricted enveloping algebras, w
e prove that u(L)(x) satisfies a group identity if and only if u(L) sa
tisfies the Engel condition. (C) 1997 Academic Press.