fundamental liability issues arising under environmental protection laws

Question 1

Liability under comprehensive environmental response, compensation, and liability act (CERCLA) is considered ___, ___ & ___, and ___

Answer 1

strict
joint and several
retroactive

Question 2

___ means that the owner is responsible to the injured party without excuse

Answer 2

Strict liability

Question 3

___ means that each of the individual owners is personally responsible for the total damages

Answer 3

joint and several liability

Question 4

If one of the owners is financially able to handle the total damages, that owner must pay the total and collect the proportionate shares from other owners whenever possible. This describes ___ liability

Answer 4

joint and several liability

Question 5

___ means that the liability is not limited to the current owner but includes people who have owned the site in the past

Answer 5

Retroactive

Question 6

According to the innocent landowner immunity clause, if pollution was caused by a ___, the landowner may be exempted from liability

Answer 6

3rd party

Question 7

According to the innocent landowner immunity clause, if the property was acquired ___, the current landowner may be exempted from liability

Answer 7

after the fact

Question 8

According to the innocent landowner immunity clause, if the landowner had no ___ or ___ of the damage, they may be exempted from liability

Answer 8

actual or constructive knowledge

Question 9

According to the innocent landowner immunity clause, if due care was exercised when the property was purchased meaning that the landowner made a(n) ___ to determine that no damage to the property existed, the landowner may be exempted from liability

Answer 9

environmental site assessment

Question 10

According to the innocent landowner immunity clause, if ___ were taken in the exercise of ownership rights, the landowner may be exempted from liability

Answer 10

reasonable precautions

Question 11

The most serious problems with value involve the presence of ___ and ___

Answer 11

undisclosed landfills and hazardous waste sites

Question 12

Licensees can encourage buyers to consult the ___ page on the EPA’s website to determine whether a property of interest is located near a(n) ___.

Answer 12

Superfund
superfund site

Question 13

real estate licensees and all others involved in a real estate transaction must be aware of their ___ under state and federal environmental laws

Answer 13

potential liability

Question 14

___ often carry the most legal liability exposure

Answer 14

sellers

Question 15

___ may be held responsible, even though they did not know about the presence of environmental hazards

Answer 15

innocent landowners

Question 16

___ may be held liable even if they didn’t cause the contamination

Answer 16

purchasers

Question 17

lenders may end up owning worthless assets if owners default on loans rather than undertaking ___

Answer 17

expensive cleanup efforts

Question 18

It is necessary for real estate licensees to be aware of the ___ from neighboring properties such as gas stations, manufacturing plants, or even funeral homes

Answer 18

potential environmental risks

Question 19

It is necessary for real estate licensees to be aware of the potential environmental risks from neighboring properties such as gas stations, manufacturing plants, or even funeral homes, otherwise they could be held liable for ___.

Answer 19

Improper disclosure

Question 20

even though real estate licensees are not expected to have technical expertise necessary to discover the presence of environmental hazards, they are presumed by the public to have special knowledge about real estate. therefore they must be aware both of ___ and ___

Answer 20

possible hazards
where to seek professional help

Question 21

developers and purchasers of commercial and industrial properties often rely on a(n) ___ that includes the property’s history of use, a current-use review, and an investigation into the existence of reported or known contamination sources in the subject area that may affect the property.

Answer 21

environmental assessment

Question 22

Although ___ may occur at any stage in a transaction, they are most frequently a contingency that must be satisfied before closing

Answer 22

environmental audits (assessments)

Question 23

Although environmental audits (assessments) may occur at any stage in a transaction, they are most frequently a contingency that must be satisfied before ___

Answer 23

closing

Question 24

a(n) ___ is often performed on a property to show that due care was exercised in determining whether any environmental impairments exist

Answer 24

environmental site assessment

Question 25

The ___ can help prevent parties from becoming involved in contaminated property and work as a defense to liability

Answer 25

environmental site assessment

Question 26

A(n) ___ is often requested by a lending institution, developer, or potential buyer.

Answer 26

environmental site assessment

Question 27

a phase 1 environmental report of an environmental site assessment is requested first to determine...

Answer 27

whether any potential environmental problems exist at or near the property that may cause impairment

Question 28

used to determine the absorption rate of soil around a septic tank

Answer 28

percolation test

Question 29

there are no federal regulations that define what a(n) ___ must include

Answer 29

environmental assessment

Question 30

there are no federal regulations that define what an environmental assessment must include, however one of the most accepted industry standards is provided by the ___

Answer 30

american society for testing materials international

Question 31

a federally funded project requires that a(n) ___ must be performed

Answer 31

environmental impact statement

Question 32

statements that detail the impact a project will have on the environment

Answer 32

environmental impact statement

Question 33

in addition to being a requirement for federally funded projects, ___ are increasingly also being required for private development

Answer 33

environmental impact statement