EnvironmentalIntermediateColorado Exam

Under CERCLA, which party may avoid cleanup liability through the 'innocent landowner' defense?

AAll current property owners automatically
BA purchaser who conducted all appropriate inquiry before purchase and had no knowledge of contaminationCorrect
CAny party who purchases property at auction, which is broadly consistent with standard practice statewide
DParties who inherited the property

Why A purchaser who conducted all appropriate inquiry before purchase and had no knowledge of contamination Is Correct

Answer B: A purchaser who conducted all appropriate inquiry before purchase and had no knowledge of contamination

The CERCLA innocent landowner defense requires that the purchaser conducted all appropriate inquiry (Phase I ESA) consistent with good commercial practice and had no reason to know of contamination. This is also called the bona fide prospective purchaser protection.

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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