Jones went to C & C Bank to apply for a loan on a home he wanted
Question:
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. | that CERCLA could not impose strict liability for owners of or lenders of purchase money for contaminated property even if they acquired the property with knowledge of contamination. | |
b. | that 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. | that if the Bank and Jones made all appropriate inquiry into the previous ownership and uses of the property before purchase, they may not be liable. | |
d. | that they would not be liable as innocent landowners as provided for in SARA and they would have an automatic defense. |