Fact Pattern 15-1 Gretta Is the CEO of a Paper Company Built near Company

question 52

Multiple Choice

Fact Pattern 15-1
Gretta is the CEO of a paper company built near a river used in interstate commerce although the state in which the company is located is land locked and not near the coast. Gretta determines that a significant amount of money needs to be spent to comply with the federal Clean Water Act. She is already in trouble with stockholders because of low profits and does not wish to spend extra money on pollution control. Therefore, she instructs employees to simply dump waste into the river. She was aware that she would be fired if the company received a heavy fine, but she decided to take the risk because she was in danger of being fired if profits did not come up anyway. Also, while Gretta believed that the Clean Air Act applied; Linda, a majority stockholder, told her that the Clean Water Act would not apply based upon the location of the plant.
-Refer to fact pattern 15-1. Is Linda correct in her argument that the Clean Water Act would not apply based upon the location of the plant?

• A) Yes, Linda is correct that the Clean Water Act would not apply because the state does not border the coast.
• B) Yes, Linda is correct that the Clean Water Act would not apply because a river would not be considered a navigable waterway.
• C) Yes, Linda is correct that the Clean Water Act would not apply because the state does not border the coast and also because a river would not be considered a navigable waterway.
• D) No, Linda is incorrect; the river would be considered a navigable waterway; it does not matter that the state is not on the coast; and the Clean Water Act would apply.

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