Exam 3 Business Law - Chapter 11
Which of the following acts controls point sources? a. Clean Air Act b. Toxic Substances Control Act c. Clean Water Act d. all of the above
Clean Water Act
An NPDES permit is issued only with EPA approval
F
The Kyoto Protocol focuses on limitations and controls of emissions.
T
The Oil Pollution Act applies to cleanups in all navigable waters up to 200 miles offshore.
T
The bubble concept applies to nonattainment areas.
T
The Mega Borg had an oil spill in the Gulf of Mexico. What is the potential liability of the corporate owners of the ship under the OPA? a. $25,000/day or $1,000/barrel spilled. b. There is no corporate liability under the OPA; only individual liability. c. $250,000/day. d. none of the above
$25,000/day or $1,000/barrel spilled.
Ace Hauling, Inc., has been transporting industrial tailings for companies around the Minneapolis/St. Paul area for the past decade. The site at which the tailing were dumped has been designated at a CERCLA Superfund site. Ace Hauling's board of directors voted to sell Ace to a new corporation created by legal counsel for Ace. All of Ace's assets, liabilities and contracts will be transferred to the new corporation whose owners are unaware of Ace's history. By creating the new corporation and transferring the assets: a. Ace can avoid liability under CERCLA. b. Ace has done nothing to change its CERCLA liability. c. Ace can avoid any contractual liability under CERCLA. d. Ace eliminates its liability if its directors have no say in running the new corporation. e. none of the above
Ace has done nothing to change its CERCLA liability.
Which of the following remedies are available to remedy environmental hazards? a. an EPA complaint b. private citizen suit under federal environmental law c. suit for nuisance d. suit under state law e. All of the above are available remedies.
All of the above are available remedies.
Which of the following would require the filing of an EIS? a. expansion of an airport in a national park b. allowing snowmobiles in a national park c. erecting a research telescope facility in a national park d. All of the above would require an EIS.
All of the above would require an EIS.
Which of the following actions would require the company to obtain a permit for discharge from the EPA? a. Releasing water back into a stream after it was used in production with the only change being its temperature. b. Releasing water back into a stream after it was used in production, but in a state cleaner than it entered the factory. c. Releasing water into a pond on company property. d. Releasing water from a power plant cooling tower into the ocean. e. All of the above would require an EPA permit.
All of the above would require an EPA permit.
An EIS is filed with the: a. Council on Environmental Quality. b. NPDES. c. EPA. d. none of the above
EPA.
A nuisance must be a public nuisance to be actionable.
F
A self-audit will increase EPA penalties for a company that conducts it.
F
An EIS must be filed for both private and governmental projects.
F
Corporate social responsibility and environmental preservation are mutually exclusive goals.
F
Insurance companies are not liable for CERCLA clean-up.
F
Lenders who repossess Superfund property can never be held liable for its cleanup.
F
Minor reporting violations do not carry penalties under the Clean Air Act of 1990.
F
Mortgage lenders are exempt from liability under CERCLA.
F
Nonattainment areas are exempt from the Clean Air Act.
F
Only current landowners are liable for Superfund cleanups.
F
Only current property owners are liable under CERCLA.
F
Private citizens may not bring suit under federal environmental legislation.
F
State environmental laws are always superceded by the federal environmental laws.
F
The Clean Air Act is applicable only to businesses with 15 or more employees.
F
The EPA has developed three categories of water pollutants: conventional, international, and toxic pollutants.
F
The Superfund is available to private citizens through the filing of a lawsuit.
F
When there is a brownfield, no one is liable for the costs of clean-up.
F
Which of the following acts established the NPDES system? a. Water Pollution Control Act of 1948 b. Water Quality Act c. Rivers and Harbors Act d. Federal Water Pollution Control Act of 1972
Federal Water Pollution Control Act of 1972
First National has just foreclosed on the mortgage of one of its debtors, Rayon Chemical. It will be six months before Rayon can sell the property. What can First National do with the property without risking CERCLA liability? a. Inspect the property. b. It is too late; foreclosure results in CERCLA liability. c. Operate the plant. d. none of the above
Inspect the property.
An "innocent landowner": a. is one who owned a Superfund site but did not contribute to its contamination. b. is one whose land value is affected by a Superfund site. c. Is someone who wants to develop a brownfield. d. none of the above
Is someone who wants to develop a brownfield.
The U.S. Supreme Court ruled that the EPA has a mandate under the Clean Air Act to act on greenhouse gases and global warming in which case? a. Environmental Defense v. Duke Energy b. Massachusetts v. EPA c. Summers v. Earthland Institute d. Union Electric v. EPA
Massachusetts v. EPA
What is the name given to groups who oppose specific placement of land usages using nuisance theories and local zoning laws? a. BANANAs b. NIMBYs c. NUTs d. BAMBIs
NIMBYs
Under which act was the EIS developed? a. Clean Air Act b. National Environmental Policy Act c. Clean Water Act d. Toxic Substances Control Act e. all of the above
National Environmental Policy Act
Which of the following federal acts does not permit private citizen suits? a. Resource Conservation and Recovery Act b. Clean Air Act c. Clean Water Act d. All of the above permit private suits.
Resource Conservation and Recovery Act
A NIMBY is a property owner who opposes development or certain land uses.
T
A due diligence review should be done before property is purchased.
T
An NPDES permit is required for point sources.
T
For purposes of CERCLA, the definition of owner/operator does not include a lender with just a security interest.
T
Many dry cleaners now charge an environmental surcharge to cover their costs on emissions compliance.
T
Most insurers now include an exclusion policy on CERCLA exposure, but coverage is available as a policy rider.
T
Nuisance is a common law anti-pollution doctrine.
T
Only actions taken by federal agents and agencies require the filing of an EIS.
T
SIPs are state plans for implementation of air quality standards.
T
SIPs must be approved by the EPA.
T
States are primarily responsible for the enforcement of the Safe Drinking Water Act.
T
Sulfur dioxide emission permits can be sold under the 1990 Act.
T
The "bubble concept" examines pollution in one area as if it came from a single source.
T
The 1970 amendments to the Clean Air Act were technology-forcing provisions.
T
The Clean Air Act of 1990 was the first federal legislation to address acid rain.
T
The Clean Air Act requires plants to use the maximum achievable control technology.
T
The EPA provides incentives for both self-reporting and self-audits.
T
The EU has the most extensive and active emissions permit trading market.
T
The Endangered Species Act permits those desiring to protect a species as well as landowners affected by such protection to challenge a determination of protection for a species.
T
The Federal Partnership Action Agenda provides funding for brownfield projects.
T
The Oil Pollution Act carries both corporate and officer penalties.
T
The Oil Pollution Act creates a trust fund for oil spill cleanup.
T
The Rivers and Harbors Act was used, at one time, to control water pollution.
T
The Telecommunications Act of 1996 deals with the placement of cell phone towers.
T
The failure of a state to develop a SIP allows the EPA to use an FIP in the state.
T
The parent corporation could have CERCLA liability for a subsidiary.
T
Those who transport and those who arrange for the transport of hazardous materials are liable under CERCLA.
T
Violations of federal environmental laws carry both civil and criminal penalties.
T
Ergonomics operates a plant that manufactures plastic furniture. Residents complain that the smell from the plant is like inhaling chlorine bleach. Ergonomics located its plant in the area in 1967. Residential development near the plant began in 1999. The houses have grown closer and closer to the plant. The owners and the developer of the residential projects near Ergonomics have filed suit against Ergonomics for creating a public nuisance. a. Ergonomics was there first and there cannot be any finding of a nuisance as a result. b. The residential property owner and developer have moved to the nuisance and remedies vary. c. The residential property use and safety always take priority; Ergonomics must be closed down. d. A smell does not rise to the level of a nuisance.
The residential property owner and developer have moved to the nuisance and remedies vary.
The federal government is required to build a border fence along the U.S. and Mexican border. As construction began, several environmental groups brought suit because the Army Corps of Engineers and the Department of Homeland Security had not complied with federal law. Which of the following federal laws would the two agencies have to comply with before constructing the wall? a. They would need to do due diligence on the land before building the fence. b. They would need to do an EIS. c. They would need to designate any area where the fence is located as a brownfield. d. both b and c
They would need to do an EIS.
The Superfund is: a. tapped by Congress for surplus spending. b. used for air pollution problems. c. available by private citizen suit. d. a trust fund. e. none of the above
a trust fund.
Litigation for EMFs have come from: a. land owners. b. adjoining land owners. c. the federal government. d. a. and b.
a. and b.
If the EPA cleans up a toxic waste site, the cost of a cleanup can be recovered from the: a. owner. b. party who dumped the waste. c. Superfund. d. all of the above
all of the above
What new businesses were affected by the Clean Air Act amendments of 1990? a. bakeries b. dry cleaners c. air conditioner repair services d. all of the above
all of the above
Which of the following parties could the EPA hold liable for toxic leaks from an underground storage tank? a. current owner b. past owner c. current operator d. all of the above
all of the above
Which of the following parties would be liable for the clean-up costs at an EPA-designated Superfund site? a. current owner b. immediate past owner c. owner responsible for the toxic waste disposal d. all of the above
all of the above
The Endangered Species Act: a. requires only that an EIS be prepared. b. applies only to government land. c. applies to private and public lands. d. none of the above
applies to private and public lands.
Brownfields: a. are former Superfund sites that have been cleaned up. b. are Superfund sites that are lying fallow. c. cannot be sold or transferred. d. both b and c
are Superfund sites that are lying fallow.
SIPs: a. are state implementation plans for air quality standards. b. are enforced by the state governments. c. need not have EPA approval. d. none of the above
are state implementation plans for air quality standards.
Ralph Waters owns forested land. The Department of the Interior has declared that a small fruitfly on his property is an endangered species and prevented the harvesting of trees there. Ralph: a. cannot harvest trees. b. is entitled to compensation for a taking. c. can challenge the determination in court. d. None of the above.
can challenge the determination in court.
In nonattainment areas the EPA: a. defers to state regulation. b. can impose construction moratoriums. c. must honor the SIP. d. can cut off all forms of federal funding.
can impose construction moratoriums.
Basa Industries, Inc., because of processing changes, has "0" emissions from its plant in New Mexico. However, Basa holds a permit for emissions from the EPA. Basa: a. must return the permit to the EPA. b. can sell the permit privately. c. can sell the permit only through the EPA. d. must use the permit or forfeit it in six months.
can sell the permit privately.
Violations of the Clean Air Act: a. carry civil and criminal penalties. b. carry only civil penalties. c. can be remedied only by a suit brought by another citizen. d. are handled by the Justice Department.
carry civil and criminal penalties.
Environmental impact statements (EIS) must: a. be written by all developers. b. discuss the economic impact of the proposed action. c. be written only when there is an air pollution concern. d. contain alternate courses of action.
contain alternate courses of action.
Ralph Watkins owns a large home on a two-acre lot in Tempe, Arizona. Watkins has much of the lot covered with tiff grass and is meticulous about mowing the lawn. Watkins piles the grass clippings near his back fence and removes them on a semiannual basis. The clippings attract crickets, rodents, scorpions, and other forms of desert life. Watkins' neighbor, Vern Brown, has noted that the various forms of desert life scale the wall and invade his property. Brown has worked with his exterminator but his exterminator has told him that the grass clippings must go before the bugs will go. Brown: a. could clean up the pile and recover from Watkins under CERCLA. b. could report Watkins for violating the Solid Waste Disposal Act. c. could seek an injunction against Watkins on the basis of nuisance. d. would not have a nuisance claim since he is the only one who is affected.
could seek an injunction against Watkins on the basis of nuisance.
The Oil Pollution Act of 1990: a. covers the construction of domestic pipelines. b. covers oil spills up to 200 miles offshore. c. was repealed. d. none of the above
covers oil spills up to 200 miles offshore.
First Banc loaned money to Best Batteries for the purchase of its factory. First Banc took a mortgage on the factory and land. Best Batteries, because the price of its lifetime battery was so high, went out of business within 18 months. Best deeded the title to the factory and land back to First Banc. When First Banc sent in a clean-up firm, it discovered that there were old and new batteries stacked everywhere on the property. First Banc: a. has no responsibility for cleanup of the batteries. b. can sell the property and disclaim liability in the purchase contracts and thus pass along the cleanup to the buyer. c. enjoys a lender's exemption from CERCLA liability. d. none of the above
enjoys a lender's exemption from CERCLA liability.
In nonattainment areas, the EPA has the authority to: a. impose construction moratoriums. b. require NPDES permits. c. halt all federal funds. d. none of the above
impose construction moratoriums.
What is the standard for pollution control equipment under the 1990 Clean Air Act amendments? a. best available technology b. maximum achievable control technology c. current available technology d. none of the above
maximum achievable control technology
"Moving to the nuisance" means: a. that the nuisance activity must still be stopped. b. means that there must be compensation for the nuisance-producing party to relocate. c. means there are no remedies available for the nuisance. d. is not permitted without an EIS. e. none of the above
means that there must be compensation for the nuisance-producing party to relocate.
The University of Arizona has developed plans for the construction of a set of telescopes on Mount Graham in southern Arizona. The project is a joint one with NASA and a French consortium. Mount Graham is the home for the red mountain squirrel - a species near extinction. The University of Arizona: a. need not file an EIS since it is not a federal agency. b. need not file an EIS since there will be no air pollution. c. need not file an EIS because of the lack of jurisdiction over the French participants. d. must file an EIS.
must file an EIS.
A public nuisance: a. cannot be enjoined by a private citizen suit. b. prevents recovery of damages by individual citizens. c. is eliminated by federal environmental regulations. d. none of the above
none of the above
The EPA's emissions offset policy: a. is used in water pollution issues. b. does not include the "bubble concept." c. is not technology-forcing. d. none of the above
none of the above
Which of the following acts established the Superfund? a. Solid Waste Disposal Act b. Resource Recovery Act c. Toxic Substances Control Act d. none of the above
none of the above
Which of the following is not regulated by the EPA? a. acid rain b. nuisance c. drinking water d. toxic waste
nuisance
Effluent guidelines are: a. part of the Clean Air Act. b. part of the National Environmental Policy Act. c. part of the Clean Water Act. d. developed by the states. e. none of the above
part of the Clean Water Act.
A National Pollution Discharge Elimination Permit: a. permits the holder to discharge pollutants at its point source. b. permits the holder to discharge toxic pollutants. c. permits the holder to discharge pollutants after pretreatment. d. permits the discharge of smoke from utility plants equipped with scrubbers.
permits the holder to discharge pollutants at its point source.
The 1990 amendments to the Clean Air Act: a. were vetoed by President Bush. b. require additional antipollution equipment on cars. c. failed to address the acid rain issue. d. do not support alternative fuels.
require additional antipollution equipment on cars.
The Telecommunications Act of 1996: a. prohibits local zoning authority over cell phone towers. b. prohibits cell phone towers. c. requires equal treatment for providers of functionally equivalent services. d. none of the above
requires equal treatment for providers of functionally equivalent services.
Acid rain is: a. sulfur dioxide pollution from factories. b. not now regulated by the federal government. c. not part of EPA enforcement plan. d. only a problem outside the United States.
sulfur dioxide pollution from factories.
Industrial groups are: a. the basis for EPA effluent guidelines. b. irrelevant in pollution standards. c. relevant at state levels only. d. none of the above
the basis for EPA effluent guidelines.
How was the Rivers and Harbors Act of 1899 used in the pollution battle? a. to prevent dumping into waterways b. to prevent the transportation of toxic substances without a permit c. to prevent all discharges d. none of the above
to prevent dumping into waterways
The Army Corps of Engineers has proposed the construction of a dam that will be of substantial benefit in Tennessee in terms of economic development. The dam will also destroy the natural habitat of an endangered species: the snail darter. The project: a. does not require an EIS since the EPA is not involved in the project. b. will require an EIS since the Army is involved. c. cannot be completed under the Environmental Protection Act. d. none of the above
will require an EIS since the Army is involved.
