James owned real estate. He leased the building to two tenants. An insurance agent leased the first floor and a law firm leased the second floor. James later sold the land to Mary, who used the entire building for her business. She discovered that there were hazardous material storage tanks buried in the land. She removed the tanks, and then sued James and the former tenants for the cost of removing the tanks, even though none of them knew the tanks had been there. Which of the following statements is correct?
A. James and the two tenants are liable.
B. James is liable to Mary, but the tenants are not.
C. The tenants are liable to Mary, but James is not.
D. Neither James nor the tenants are liable to Mary.
Answer: B
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