Under the Superfund Law, a Purchaser of Land May Escape

question 40

Multiple Choice

Under the Superfund law, a purchaser of land may escape the liability to cleanup hazardous wastes by:

• A) fixing responsibility on the previous owner of the land.
• B) suing the land seller for the hazardous wastes left by the seller.
• C) informing the government of any hazardous wastes in the land.
• D) pleading ignorance to the knowledge of the act.
• E) proving the exercise of due diligence in checking the land for toxic hazards.

---

Definitions:

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount, recognized as an expense.

Value in Use

The present value of future cash flows expected to be derived from an asset, indicating its utility to the owner.

Straight Line

A method of calculating depreciation and amortization that evenly spreads the cost of an asset over its useful life.

Sale Price

The amount of money for which a product, asset, or service is sold in the marketplace.