In May of 2018, Jones went to C & C Bank to apply for a loan on a home he wanted to purchase. C & C Bank loaned the money to Jones because he had excellent credit. C & C never inspected the property Jones was purchasing. Two weeks later, five rusty and leaking 55-gallon drums of a toxic substance were found buried in a creekbed in Jones' backyard. Jones and the Bank's position with regard to
liability for cleanup on the property would be:
A) liability would be imposed by CERCLA as strict liability for owners of contaminated property even if they acquired the property without knowledge of contamination.
B) they would not be liable because they were innocent landowners as provided for in SARA, and they would have an automatic defense.
C) that, if the Bank and Jones made an appropriate inquiry into the previous ownership and uses of the property before purchase, they may not be liable.
D) if it could be proven that neither Jones nor the bank unlawfully disposed of the toxic waste, they could not be found liable under CERCLA.
C
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The increase in risk to shareholders when financial leverage is introduced is best evidenced by:
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What will be an ideal response?