Economics Chapter 45 Ultra hazard Removal & Disposal Corporation transports radioactive 

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Chapter 45
Environmental Law
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
B1. An injured party may sue a business polluter in tort under the negligence and
strict liability theories.
B2. A public authority, such as a state’s attorney general, can sue to stop a “public”
nuisance.
B3. Businesses that engage in ultrahazardous activities are not liable for any
injuries the activities cause.
B4. Only the federal government may restrict emissions from motor vehicles.
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2 TEST BANK BUNIT NINE: GOVERNMENT REGULATION
B5. An environmental impact statement must analyze the impact on any affected
business of proposed environmental controls.
B6. The primary responsibility for implementing air-pollution standards established
under the Clean Air Act rests with state and local governments.
B7. The Environmental Protection Agency has not concluded that greenhouse
gases, including carbon dioxide emissions, constitute a public danger.
B8. There is one set of ambient standardsmaximum permissible levels of certain
pollutantsand the Environmental Protection Agency formulates plans to
achieve them.
B9. Those who knowingly violate the Clean Air Act may be subject to criminal
liability.
B10. National Pollutant Discharge Elimination System permits can be issued even if
a discharge will violate water-quality standards.
B11. The National Pollutant Discharge Elimination System focuses on industrial
wastewater and storm water discharges.
B12. Water-quality standards are set by the Environmental Protection Agency.
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CHAPTER 45: ENVIRONMENTAL LAW AND SUSTAINABILITY 3
B13. National effluent (pollution) standards are set by the Environmental Protection
Agency for each industry.
B14. The Clean Water Act permits the filling or dredging of wetlands without a
permit.
B15. Under the Clean Water Act, criminal penalties apply whether a violation was
intentional or unintentional.
B16. Public water systems operators must come as close as possible to meeting the
Environmental Protection Agency’s standards by using any available
technology that is economically and technologically feasible.
B17. Any oil facility that discharges oil into navigable waters or onto an adjoining
shore may be liable for cleanup costs, as well as damages.
B18. It is a violation of federal law to sell a pesticide or herbicide that has a chemical
strength different from the concentration declared on the label.
B19. When a release of hazardous chemicals from a site occurs, potentially
responsible parties can avoid liability through transfer of ownership.
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4 TEST BANK BUNIT NINE: GOVERNMENT REGULATION
B20. There are no defenses to liability under the Comprehensive Environmental
Response, Compensation, and Liability Act.
MULTIPLE CHOICE QUESTIONS
B1. Ultrahazard Removal & Disposal Corporation transports radioactive materials.
Vincent, an Ultrahazard employee, is diagnosed with radiation sickness after
exposure to the materials. Vincent’s suit against Ultrahazard to recover for the
injury is known as
a. an environmental impact statement.
b. a nuisance.
c. a toxic tort.
d. a hazardous substance response.
B2. Plywood & Particleboard Mill, Inc., does not use proper filters on its stacks,
which consequently pollute the air. Quinn, a Plywood & Particleboard
employee, suffers respiratory illness. To succeed in a suit against the company
on the ground of negligence, Quinn must show that he suffers from
a. a distinct harm separate from that affecting the general public.
b. a lesser harm than an injunction would impose on Plywood &
Particleboard.
c. Plywood & Particleboard’s failure to use reasonable care to avert herm
to Quinn.
d. the same harm as that affecting the general public.
Fact Pattern 45-1B (Questions B3B4 apply)
Open Pit Excavation Inc. operates a rock quarry next to Robyn’s vineyard and winery.
Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and
unreasonably interferes with Robyn’s enjoyment of her property.
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CHAPTER 45: ENVIRONMENTAL LAW AND SUSTAINABILITY 5
B3. Refer to Fact Pattern 45-1B. The court is most likely to award Robyn an
injunction
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
B4. Refer to Fact Pattern 45-1B. The court is most likely to award Robyn damages
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
B5. Nashville, Tennessee, passes an ordinance to regulate waste disposal. The
disposal of waste may also be regulated by
a. all other levels of government.
b. no other levels of government.
c. the federal government only .
d. the Tennessee state government only.
B6. Clean n Green, Inc., operates a chain of car washes throughout the United
States. The government entity that is most likely to be involved in regulating the
chain’s environmental impact is
a. Congress.
b. federal and state regulatory agencies.
c. local chambers of commerce.
d. local police departments.
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6 TEST BANK BUNIT NINE: GOVERNMENT REGULATION
B7. Energy Market Corporation wants to build a wind power plant on private land,
for which a federal permit is required. For this action, an environmental impact
statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
B8. Ski Resorts, Inc., wants to add a new run to its facility in a national park on
federal land. For this action, an environmental impact statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
B9. The National Park Service hires Outdoor Play, Inc., to replace outdated
playground equipment in a handful of national parks. For this action, an
environmental impact statement is most likely
a. prohibited because the action does not affect the environment.
b. required because the action is “federal.”
c. unnecessary because the action is not “major.”
d. voluntary because the action does not affect the environment.
B10. Loaf & Biscuit Company operates a commercial dough making and packaging
plant—a “major source”—that emits hazardous air pollutants for which the
Environmental Protection Agency has set maximum levels of emission. The
plant does not use any equipment to reduce its emissions. Under the Clean Air
Act, this is most likely
a. a violation.
b. not a violation because dough is not considered a pollutant.
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CHAPTER 45: ENVIRONMENTAL LAW AND SUSTAINABILITY 7
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
B11. The operations of Commercial Concrete, Inc., are major sources of air pollu-
tion. These operations must use
a. the absolutely cleanest air technology.
b. the best available filter technology.
c. the maximum achievable control technology.
d. the most affordable scrubbing technology.
B12. Industrial Solvents, Inc., averages $15,000 profit per day before deciding to
ignore air pollution standards, after which the average is $30,000. Industrial
Solvents is subject to a fine of
a. $0.
b. $15,000 per day.
c. $30,000 per day.
d. $30,000 total.
B13. Fried Food, Inc., operates a commercial frying plant, discharging pollutants into
the air. Greg reports the violations to the Environmental Protection Agency.
Greg
a. is not entitled to a payment.
b. may be paid up to any amount.
c. may be paid up to $1,000.
d. may be paid up to $10,000.
B14. Condos & Course Development, Inc., fills a wetlands area that it owns without
a permit from the U.S. Army Corps of Engineers. Condos & Course
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8 TEST BANK BUNIT NINE: GOVERNMENT REGULATION
Development plan to build a golf course and residences on the site. Under the
Clean Water Act, this is most likely
a. a violation.
b. not a violation because a permit is not needed to fill wetlands.
c. not a violation because the area was filled before construction.
d. not a violation because there was no discharge of pollution.
B15. Energy Resources, Inc., operates an oil refinery near Forest River, which flows
into Grove Lake. Discharging oil from the refinery into the river can result in
a. penalties and damages.
b. penalties only.
c. damages only.
d. no penalties or damages.
B16. Grease & Lubricants Inc. makes its products without required pollution control
technology, causing a discharge of oily waste into the nearby Holly Lake. This
activity can result in
a. a criminal fine or imprisonment only.
b. a criminal fine, imprisonment, or an injunction only.
c. a criminal fine, imprisonment, an injunction, or damages.
d. an injunction only.
B17. County Water & Sewer operates a public water supply system. County Water
must send to every household that it supplies with water an annual statement
describing
a. County Water’s financial situation and material facts that might affect it.
b. other operations, such as irrigation and water conservation, in which
County Water is involved and to what extent.
c. parties who might be held liable if pollution problems arise.
d. the source of the water, and any contaminants and health concerns.
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CHAPTER 45: ENVIRONMENTAL LAW AND SUSTAINABILITY 9
B18. Pest Eradication, Inc., makes a pesticide with a one-in-a-million risk to people
of developing cancer from exposure. This substance must be
a. disposed of before anyone develops cancer.
b. registered before it is sold.
c. taken off the market and placed in temporary storage.
d. used only in a way that avoids exposure to people.
B19. HazMat Waste Corporation operates a hazardous waste storage facility.
Concerned that there may be a release of chemicals from the site, HazMat
sells the property to Investment Holdings, Inc. If there is a release, HazMat is
most likely
a. liable.
b. not liable because the site was sold before the release.
c. not liable because HazMat was concerned about the release.
d. not liable because HazMat no longer operates the facility.
B20. BioChemical Disposal Corporation operates a hazardous waste storage facility.
ChemCo Inc. buys BioChemical before it is discovered that the firm’s disposal
practices violated CERCLA. With respect to these violations, Superfund
imposes on ChemCo
a. strict liability.
b. liability under the nuisance doctrine.
c. liability on a negligence theory.
d. no liability.
ESSAY QUESTIONS
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10 TEST BANK BUNIT NINE: GOVERNMENT REGULATION
B1. Metal Smelting & Foundry Inc.’s complex spews smoke and odors. The site
features its own rail system, and trucks enter and exit the complex night and
day. Neal and other residents of an adjacent neighborhood can feel the
vibrations of the trains and trucks, and suffer other effects from the operations.
Neal and others file a suit against Metal Smelting. Why might the court rule in
favor of the defendant?
B2. Bertha owns land located outside Centre City. Bertha sells the land to Disposal
& Recycling, Inc., which establishes a hazardous waste disposal facility at the
site. Disposal & Recycling accepts only waste transported by Eco Trucking Inc.
exclusively from Federated Industries, Inc. Several years later, Disposal &
Recycling closes its facility and sells the land to Garden Variety Retail
Corporation, which builds a Home & Yard store on the site. Meanwhile, some
of Centre City’s citizens complain to the Environmental Protection Agency
(EPA) that the city’s municipal water supply is polluted. The EPA investigates
and discovers that the sources of the pollution are leaks of hazardous waste
from what is now the Home & Yard site. The EPA cleans up the site. Who can
be held liable for the cost of cleaning up the site? What standards must Centre
City meet regarding the water?
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CHAPTER 45: ENVIRONMENTAL LAW AND SUSTAINABILITY 11

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