Business Law, 8e (Cheeseman)
Chapter 45 Environmental Protection
1) The Environmental Protection Agency lacks adjudicative powers to hold hearings and order
remedies for violation of environmental laws.
2) The EPA administers the NEPA and has the authority to adopt regulations for the enforcement
of the act.
3) The NEPA and EPA regulations require that an environmental impact statement (EIS) be
prepared by the state government.
4) An EIS must contain a cost-benefit analysis of the proposed action and alternative actions.
5) An EIS can be challenged in court by environmentalists and other interested parties.
6) Oil refineries are an example of stationary sources of air pollution.
7) The Clean Air Act does not apply to stationary sources of pollution.
8) The Clean Air Act authorizes the EPA to regulate air pollution caused by fuel and fuel
additives.
9) The pollutant standards under the NAAQS are set in two levels.
10) The primary level of the NAAQS protects vegetation.
11) Human beings are protected in the secondary level of the NAAQS.
12) The right to enforce air pollution standards is an exclusive prerogative of the federal
government.
13) Each state is required to prepare a state implementation plan (SIP) that sets out how the state
plans to meet the federal pollutant standards.
14) Regions that do not meet air quality standards are designated as air quality control regions.
15) The third category of the nonattainment areas is labeled “serious.”
16) The EPA can prohibit the construction of a new pollution-causing industrial plant in a state
that is a nonattainment area.
17) According to officials at the Environmental Protection Agency (EPA), the air inside
buildings is typically the safest as it is free from pollution.
18) Indoor air pollution is primarily caused by toxic fumes from industrial plants located in
cities.
19) The Federal Water Pollution Control Act enacted by the Congress in 1948 continues to be
applied across the United States in its original form without amendments.
20) The federal government is primarily responsible for the implementation of the Clear Water
Act in all states.
21) The Clear Water Act extends its protections to the oceans.
22) Point sources are sources of pollution that are fixed and stationary.
23) Sources of thermal pollution are subject to the provisions of the Clean Water Act and the
regulations adopted by the EPA.
24) The filling or dredging of navigable waters and qualified wetlands are prohibited unless a
permit has been obtained from the Army Corps of Engineers.
25) The Clear Water Act authorizes the EPA to establish national primary drinking water
standards.
26) The Marine Protection, Research, and Sanctuaries Act, enacted in 1972, extends
environmental protection to the oceans.
27) As a part of the Marine Protection, Research, and Sanctuaries Act, dumping wastes and other
foreign materials into ocean waters are statutorily prohibited with no alternatives like permits,
licenses, and mandatory checks.
28) The Oil Pollution Act authorizes the U.S. government to clean up oil spills and spills of other
hazardous substances in ocean waters within 12 miles of the shore.
29) The Toxic Substances Control Act is administered by the U.S. Army Corps of Engineers.
30) The EPA requires special labeling of toxic substances.
31) The Clean Air Act requires the EPA to identify toxic air pollutants that present a substantial
risk of injury to human health or the environment.
32) Under the Resource Conservation and Recovery Act, the EPA is authorized to regulate
underground storage facilities.
33) The Superfund is financed through taxes on products that contain hazardous substances.
34) The Comprehensive Environmental Response, Compensation, and Liability Act is commonly
called the Superfund.
35) Taking is defined as an act intended to “harass, harm, pursue, hunt, shoot, wound, kill, trap,
capture, or collect” an endangered animal.
36) The Endangered Species Act applies only to private parties.
37) The ________ is a federal administrative agency created by Congress to coordinate the
implementation and enforcement of the federal environmental protection laws.
A) Ministry of Environmental Protection
B) Environmental Investigation Agency
C) Environmental Protection Agency
D) Global Environment Facility
38) The National Environmental Policy Act is a federal statute which mandates that the federal
government must ________.
A) consider focusing on air and water pollution to the exclusion of other sources of pollution as
these two modes of pollution have the greatest impact on human lives
B) execute a complete ban on the commercial usage of the two hundred toxic substances
identified as being harmful and polluting
C) implement a zero-tolerance policy for all business activities that discharge waste products into
water bodies
D) consider the adverse impact a federal government action would have on the environment
before the action is implemented
39) The ________ administers the NEPA and has the authority to adopt regulations for the
enforcement of the act.
A) Environmental Protection Agency
B) Environmental Investigation Agency
C) Ministry of Environmental Protection
D) Association of Environmental Professionals
40) Which of the following is a document required by the NEPA that must be prepared for any
proposed legislation or major federal action that significantly affects the quality of the human
environment?
A) environmental impact abstract
B) environmental impact statement
C) environmental impact design
D) strategic environmental assessment
41) Which of the following steps immediately follows the publication of the EIS for a proposed
project?
A) the Congress has to pass a bill adopting the EIS
B) the non-profit environmentalists are allowed access to the EIS
C) the government issues an order to proceed with a federal action on the project
D) the interested parties submit comments to the EPA
42) Which of the following is true of an EIS?
A) It is not required by state or local laws, only federal law.
B) It can be challenged in court by environmentalists or other interested parties.
C) It can only be accepted after Congress passes a bill adopting the EIS.
D) It is not required for projects undertaken by private parties.
43) Which of the following would be considered a stationary source of air pollution?
A) aircrafts
B) oil rigs
C) cargo ships
D) automobiles
44) Which of the following is true of the Clean Air Act?
A) It is the only major state law regulating air pollution in the United States.
B) It fails to include the air pollution caused by fuel and fuel additives in its purview.
C) It is only concerned with stationary sources of air pollution.
D) It requires air pollution controls to be installed on motor vehicles.
45) The primary level of the NAAQS protects ________.
A) flora
B) human beings
C) water bodies
D) climate
46) The NAAQS ________.
A) divide pollutants into five groups based on the risks they pose to humans
B) represent a set of standards for certain pollutants that have two levels
C) apply to all sources of pollution
D) are administered exclusively by the federal government
47) Each state is required to prepare a(n) ________ that sets out how the state plans to meet the
federal standards set by the NAAQS.
A) strategic environmental assessment
B) environmental impact statement plan
C) state assessment plan
D) state implementation plan
48) Which of the following is true of the NAAQS?
A) The federal government has the right to enforce these air pollution standards if the states fail
to do so.
B) The state governments are responsible for setting standards for air quality in their respective
state.
C) Human beings are protected under the secondary level of the NAAQS.
D) Only standards for oxides of elements and particulate matter are evaluated under the NAAQS.
49) A geographical area that does not meet established air quality standards is designated as a(n)
________.
A) limited pollution area
B) nonattainment area
C) zoned ordinance area
D) federal regulation area
50) In a survey of the nonattainment areas in the state, the agency found Helmont to be the
district that exceeded the ozone standard by the largest margin. Helmont is most likely to be
categorized as a(n) ________ nonattainment area.
A) severe
B) extreme
C) marginal
D) serious
51) Which of the following measures is likely to reduce indoor air pollution?
A) complete air conditioning with sealed windows
B) heavy insulation
C) closure of all air ducts
D) no-fragrance policy
52) Which of the following is a primary cause of sick building syndrome in the United States?
A) large number of outside ducts
B) unsealed windows
C) thinly insulated buildings
D) hazardous construction materials
53) Which of the following is a sanction imposed on states that don’t implement approved plans
for reduction in air pollution?
A) increase in tax for personal property
B) reduction in public school funding
C) loss of federal highway funds
D) implementation of monthly fines based on pollution levels
54) Which of the following federal administrative agencies enacts the Clean Water Act?
A) the Environmental Investigation Agency
B) the Environmental Protection Agency
C) the Ministry of Environmental Protection
D) the Association of Environmental Professionals
55) Which of the following is primarily responsible for enforcing the provisions of the Clean
Water Act regulations?
A) the federal government
B) independent agencies
C) the state government
D) non-profit organizations
56) AMS is a factory situated on the coast that uses chemicals like lead and arsenic in its daily
production processes. It discharges the waste products of the manufacturing process into the sea
nearby. From the information provided in the scenario, we can infer that ________.
A) AMS is a heavy electrical goods company
B) AMS is using radioactive minerals
C) AMS is likely to face corrective action by the U.S. Army Corps of Engineers
D) AMS is a source of pollution that is fixed and stationary
57) The process by which heated water or material is discharged into waterways upsetting the
ecological balance and decreasing the oxygen content is defined as ________.
A) land pollution
B) radioactive pollution
C) air pollution
D) thermal pollution
58) Areas that are inundated or saturated by surface water or ground water that support
vegetation typically adapted for life in such conditions are called ________.
A) marine reefs
B) gullies
C) wetlands
D) reservoirs
59) The Clean Water Act forbids the filling or dredging of navigable waters and qualified
wetlands unless a permit has been obtained from the ________.
A) Ministry of Environmental Protection
B) U.S. Army Corps of Engineers
C) Environmental Protection Agency
D) Nuclear Regulatory Commission
60) Which of the following actions is prohibited under the Clean Water Act?
A) inhabitation on inland areas in the vicinity of wetlands and marshes
B) chemical treatment of wastes to reduce toxicity before discharge into wetlands
C) construction of residences by filling qualified wetlands
D) creation of artificial lakes and waterways for recreation
61) The ________ is a federal statute that authorizes the EPA to establish national primary
potable water standards.
A) Comprehensive Environmental Response, Compensation, and Liability Act
B) Federal Water Pollution Control Act
C) Clean Water Act
D) Safe Drinking Water Act
62) Which of the following is a federal statute that extends limited environmental protection to
the oceans?
A) the Safe Drinking Water Act
B) the Marine Protection, Research, and Sanctuaries Act
C) the Federal Water Pollution Control Act
D) the Comprehensive Environmental Response, Compensation, and Liability Act
63) The ________ authorizes the U.S. government to clean up oil spills and spills of other
hazardous substances in ocean waters within 12 miles of the shore and on the continental shelf
and to recover the cleanup costs from responsible parties.
A) Clear Water Act
B) Comprehensive Environmental Response, Compensation, and Liability Act
C) Federal Water Pollution Control Act
D) Marine Protection, Research, and Sanctuaries Act
64) The U.S. Coast Guard administers the Oil Pollution Act which requires the oil industry to
________.
A) obtain a permit for dumping wastes and other foreign materials into ocean waters
B) implement measures to avoid dumping of wastes into wells used for drinking water
C) adopt procedures and contingency plans to readily respond to and clean up oil spills
D) establish marine sanctuaries in ocean waters as far seaward as the edge of the continental
shelf
65) One of the features of the Marine Protection, Research, and Sanctuaries Act is that it
________.
A) requires the oil industry to adopt procedures and contingency plans to readily respond to and
clean up oil spills
B) requires a permit for dumping wastes and other foreign materials into ocean waters
C) requires the tanker owner-operator to prove that it is fully insured to cover any liability
that may occur from an oil spill
D) issues permits for discharge of dredged or fill material into navigable waters and qualified
wetlands
66) Which of the following is true of the EPA standards set for toxic substances?
A) They are set without regard to economic or technological feasibility.
B) They are set based on the recommendation of business owners affected by the pollution.
C) They require the EPA to identify all chemicals based on the NAAQS.
D) They require a complete ban on all toxic substances.
67) Which of the following is true of the Insecticide, Fungicide, and Rodenticide Act?
A) It only allows government-manufactured pesticides to be sold.
B) It requires all pesticides to be registered with the EPA.
C) It cannot suspend the registration of an already registered pesticide.
D) It allows non-registered pesticides to be sold only with the close monitoring by the EPA.
68) The ________ is a federal statute that authorizes the EPA to regulate facilities that generate,
treat, store, transport, and dispose of hazardous wastes.
A) Resource Conservation and Recovery Act
B) Clear Water Act
C) Toxic Substances Control Act
D) Comprehensive Environmental Response, Compensation, and Liability Act
69) The remains of the process by which nuclear power is generated in a reactor are most likely
to be classified as ________.
A) oil-spilled pollutants
B) inert elements
C) pesticides
D) hazardous wastes
70) The ________ Act provides for the creation of a government fund to finance the cleanup of
hazardous waste sites.
A) Resource Conservation and Recovery
B) Toxic Substances Control
C) Comprehensive Environmental Response, Compensation, and Liability
D) National Environmental Policy
71) The Superfund Act, administered by the EPA, gives the federal government a mandate to
________.
A) establish marine sanctuaries in ocean waters as far seaward as the edge of the continental
shelf
B) impose fines on buildings and office that cause harm to their occupants due to indoor air
pollution
C) cleanup hazardous wastes that have been spilled, stored, or abandoned
D) set standards on the toxic substances that can be used or sold
72) Which of the following is a true of the Superfund?
A) It gives mandate to the state government to deal with hazardous wastes that have been spilled,
stored, or abandoned.
B) It identifies sites in the United States where hazardous wastes have been disposed of, stored,
abandoned, or spilled.
C) It levies extra tax on the people of the state where hazardous wastes have been improperly
disposed of.
D) It does not permit states and private parties who clean up hazardous waste sites to seek
reimbursement from the fund.
73) Armex, a large power plant, has been in the news for a potential defect in the construction of
its inner chambers that caused radioactive fumes to escape from the plant to the surrounding
areas. This has endangered the lives of the employees at the plant as well as those staying in
nearby areas. This safety violation is likely to be taken up by the ________ for corrective action
like closure of the plant.
A) Federal Nuclear Agency
B) U.S. Army Corps of Engineers
C) Nuclear Waste Policy Commission
D) Nuclear Regulatory Commission
74) Which of the following is a mandate of the Nuclear Waste Policy Act to the government?
A) to set standards for radioactivity in the environment
B) to select a permanent site for the disposal of nuclear wastes
C) to regulate thermal pollution from nuclear power plants
D) to use wetlands as a source of nuclear wastage disposal
75) Which of the following is true of the Endangered Species Act?
A) It is the only federal law that protects wildlife at present.
B) It empowers the secretary of the interior to declare a form of wildlife as endangered.
C) It does not include marine species and amphibian life forms.
D) It applies only to the government taking of any endangered species.
76) Describe the purpose and requirements of an EIS?
77) Explain the nature and enforcement of the NAAQS?
78) What are the measures taken to protect wetlands in the United States?
79) Describe any two legislations that have been implemented to minimize the damage caused by
oil spills.
80) How are endangered species protected in the United States? Name three laws that protect
wildlife species.
81) Give an account of the state environmental protection laws.