Business Law, 8e: Chapter 39

Chapter 39
Environmental Protection:

Your Full Name:

Your Email Address:

The Email address of an instructor to mail your quiz results:

1. Ken purchased a piece real estate from BCF Industries as an investment. Within six months, he sold the land to City Hospital making a $10,000 profit. Later, hazardous waste was discovered on the site. Since Ken owned the property for less than a year and was not responsible for the hazardous waste, he is not liable under CERCLA for the cleanup costs.: a. True
b. False

2. The Friends of the Earth v. Laidlaw Environmental Services case was about whether FOE had standing to sue.: a. True
b. False

3. Tony believes that Trico Industries, Inc. is violating the Clean Air Act. Despite Tony's repeated requests, the EPA has not taken any action against Trico. Tony can file a citizens suit against either the EPA or Trico.: a. True
b. False

4. Brownsville Hospital is considering a 10-acre plot of land to build a new hospital. Before buying the land, Brownsville should investigate whether there is hazardous waste on the land.: a. True
b. False

5. Kemmet, Inc. decided to build a $20 million storage facility. There is no involvement by the government in this building. Nevertheless, Kemmet must prepare an environmental impact statement.: a. True
b. False

6. A Spanish company operates a ship called the Matador. The freighter travels worldwide. Since the Matador sails in U.S. waters, it must comply with the standards set by the Oil Pollution Act of 1990.: a. True
b. False

7. The Resource Conservation and Recovery Act establishes rules for treating hazardous wastes and other forms of solid waste.: a. True
b. False

8. Effluent guidelines are ranges for allowable discharges into water and are grouped according to industries.: a. True
b. False

9. "Knowingly" violating an environmental protection statute is a crime.: a. True
b. False

10. An injunction may be available to stop polluting activity.: a. True
b. False

11. Under the Clean Water Act, point sources:: a. must comply with the applicable effluent limitations and must obtain and satisfy all relevant permits.
b. must comply with the applicable effluent limitations, but need not obtain permits.
c. must obtain and satisfy all relevant permits, but need not comply with the applicable effluent limitations.
d. need neither to comply with applicable effluent standards nor to obtain permits.

12. From 1950 to 1986, Trico, Inc. manufactured ceiling tiles at a facility located at the corner of Elizabeth St and Palm Boulevard. Trico dumped hazardous waste on the site. Subsequently, the land was sold to K-Star, Inc. K-Star used the land as a storage facility. K-Star then conveyed the land to BCF. BCF bought the land as an investment and did not use the land. Eventually, it was sold to North Plaza Park. In 2002 as North Plaza Park was building an office complex, the hazardous waste was discovered. Who is potentially liable for the cost of cleaning up the hazardous waste?: a. Only Trico, Inc., because it disposed of the hazardous waste on the land.
b. Trico, Inc. and K-Star, since they used the land.
c. Trico, Inc., K-Star and North Plaza Park because they intended to use the land.
d. Trico, Inc., K-Star, North Plaza Park and BCF because they all owned the land.

13. An Environmental Impact Statement (EIS) must include possible alternatives to the proposed action. In deciding whether to include a given alternative, the courts use:: a. a "rule of reason test" that gauges whether a reasonable person would view any alternative as sufficiently significant to merit extended discussion.
b. a per se rule. All alternatives must be included.
c. a plausible test. All alternatives that are plausible must be included.
d. a speculative test. An alternative must be included if a person can imagine that the alternative is possible.

14. "Superfund" is a creation of which of the following?: a. National Environmental Policy Act (NEPA)
b. Environmental Protection Agency (EPA)
c. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
d. Occupational Safety and Health Administration (OSHA)

15. The 1996 Amendments to the Safe Drinking Act:: a. allow for much more contaminants in drinking water.
b. regulate bottled water.
c. require absolutely pure drinking water by the year 2000.
d. require the EPA to list contaminants in public water systems.