Environmental

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA/Superfund) can make a property buyer liable for prior contamination unless they qualify as a(n):

AA. Ordinary investor
BB. Innocent landowner / bona fide prospective purchaser who conducted an All Appropriate Inquiry (Phase I ESA)✓ Correct
CC. Licensed contractor
DD. First-time homebuyer

Explanation

CERCLA holds current owners and operators liable for cleanup, regardless of who caused the contamination. However, buyers can claim the 'innocent landowner' or 'bona fide prospective purchaser' defense if they conducted an All Appropriate Inquiry (typically a Phase I Environmental Site Assessment) before purchase and had no knowledge of contamination.

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