EnvironmentalIntermediateArizona Exam

An Arizona seller's obligation under CERCLA liability is relevant when:

AThe property contains a newly constructed building, since CERCLA imposes liability on all parties in the ownership chain regardless of when the improvements were added
BThe property has or had hazardous waste activities, making the seller a potentially responsible party for cleanup costsCorrect
CThe property is zoned residential, since CERCLA's residential property exemption applies only to single-family homes and not to commercial or multifamily properties
DOnly when the buyer is a commercial entity, since CERCLA's seller liability provisions were enacted specifically to govern business-to-business environmental indemnification

Why The property has or had hazardous waste activities, making the seller a potentially responsible party for cleanup costs Is Correct

Answer B: The property has or had hazardous waste activities, making the seller a potentially responsible party for cleanup costs

CERCLA imposes strict liability on current and past owners, operators, generators, and transporters of hazardous waste. A seller who owned contaminated property may remain liable for cleanup even after selling.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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