Question

Which of the following statements is true about the impact of environmental regulation on business?

• Local businesses such as dry cleaners and bakeries are not subject to state and federal environmental laws.

• An understanding of environmental law is important in limiting a company's liability and maintaining regulatory compliance.

• Owners of businesses are only held liable for contamination of property or the environment if they contributed to the contamination.

• Environmental law and regulation is a concern only for owners of large industrial plants.

Answer 1

Ans -: Correct Statement -: An understanding of environmental law is important in limiting a company's liability and maintaining regulatory compliance.

Reason -:

• Dry cleaners and bakery businesses are also subject to environmental laws.
• Owners of businesses are held liable for contamination of property or environment if it is present in their property , whether they have contributed to it or not . This is applicable under CERCLA[Comprehensive Environmental Response , Compensation and Liability Act] which imposes liability on parties for , in whole or in part , the presence of hazardous substances at a site .
• Environmental Laws are a matter of concern for all types of businesses whether large or small.