Exam Prep Environmental Regulation Mallor Chapter 52

Business Law, 17e (Langvardt)

Chapter 52 Environmental Regulation

1) According to the National Environmental Policy Act, every business contemplating a project must file an environmental impact statement.

2) Every state or local municipality must file an environmental impact statement under NEPA.

3) Under the Clean Air Act, the federal government is required to develop a state implementation plan for meeting national ambient air quality standards in every state.

4) The preconstruction review process required under the Clean Air Act applies to new facilities as well as existing facilities that undergo major modifications.

5) No manufacturer may sell vehicles subject to emission standards without prior certification from EPA.

6) The Clean Air Act provides the framework for the current approach to air pollution.

7) Where the states fail to enforce the drinking water standards, the federal government has the right to enforce them.

8) The federal government has a comprehensive program to fight climate change.

9) Under the Clean Water Act, the states have the main responsibility for regulating water pollution.

10) The Clean Water Act incorporates both civil and criminal sanctions.

11) The Clean Water Act sets up a permit system for any dredging or filling activity in wetlands that is administered by the Army Corps of Engineers.

12) The Ocean Dumping Ban Act of 1987 set up a permit system regulating the dumping of all types of materials into ocean waters.

13) The Clean Water Act establishes a program governing the injection of wastes into wells.

14) State governments establish the standard for drinking water in the United States.

15) EPA regulates underground storage tanks, such as those used for gasoline.

16) The Resource Conservation and Recovery Act provides for only civil penalties for noncompliance with hazardous waste regulations.

17) EPA bears the primary responsibility for the siting and regulation of solid waste disposal.

18) A shortcoming of the Comprehensive Environmental Response, Compensation, and Liability Act (or "Superfund") is that the federal and state governments must bear the sole financial burden for cleaning up the sites.

19) The Toxic Substances Control Act gives EPA the authority to regulate the production and use of agricultural chemicals such as insecticides.

20) Federal tax revenues are used to pay for the clean up of Superfund sites.

21) The ________, enacted in 1970, required that an environmental impact statement be prepared for every recommendation or report on legislation and for every major federal action significantly affecting the quality of the environment.

A) Comprehensive Environmental Response Compensation and Liability Act

B) Clean Air Act

C) National Environmental Policy Act

D) Toxic Substances Control Act

22) Which of the following is true of the National Environmental Policy Act (NEPA)?

A) It does not apply to businesses in states that have their own state laws in place.

B) Citizens can force federal agencies to comply with NEPA.

C) It requires that state governments ensure that all entities within state borders submit environmental impact statements.

D) NEPA requires that all businesses file an environmental impact statement before a project is undertaken.

23) NEPA is what type of law?

A) Federal law that affects all federal agencies and federal action

B) State law affecting state agencies across all 50 states

C) International law impacting state action

D) Municipal law that impacts federal action

24) EPA has set national ambient air quality standards for:

A) chlorofluorocarbons.

B) sulfur oxide.

C) carbon dioxide.

D) methane.

25) The Environmental Protection Agency (EPA) sets a "primary standard" for air pollution. This standard is designed to protect against harm to:

A) human health.

B) animal health.

C) plant health.

D) climate health.

26) Volatile organic compounds (VOCs) combine with ________ under the influence of sunlight to become ozone—also known as smog.

A) nitrogen oxides

B) carbon monoxide

C) chlorofluorocarbons

D) sulfur oxides

27) Which of the following statements about the problem of acid rain is accurate?

A) The 1990 amendments to the Clean Air Act addressed the problem of acid rain by requiring the installation of scrubbers in most electric generating facilities.

B) The 1970 Clean Air Act addressed the problem of acid rain by providing for an emission trading scheme.

C) The 1990 amendments to the Clean Air Act addressed the problem of acid rain by instructing electric generating facilities to build tall smokestacks.

D) The 1970 Clean Air Act addressed the problem of acid rain by requiring the installation of clean-coal technologies.

28) Which of the following was an unintentional effect of the 1970 Clean Air Act?

A) Decrease in the output of electricity generated

B) Development of clean-fueled vehicles

C) Sudden increase in the prices of clean fuels

D) Long range transport of some pollutants

29) Which of the following is true of the emission trading scheme provided by the 1990 amendments to the Clean Air Act?

A) Allowances can be traded between companies, but cannot be sold.

B) An allowance provides a right to emit more sulfur oxide.

C) It applies only to those companies engaged in interstate commerce.

D) Allowances can be sold to government, but not among private firms.

30) The 1970 Clean Air Act required EPA to regulate the emission of toxic air pollutants. Which of the following toxic air pollutants did EPA set standards for under this authority?

A) Toluene

B) Phenol

C) Asbestos

D) Selenium

31) Brilliant Manufacturing is building a new factory. What kind of air pollution control technology must Brilliant install in its factory according to the Clean Air Act?

A) The best available state-of-the-art technology

B) Technology that its competitors in the industry are using

C) The most cost-efficient technology

D) Technology in line with the local air quality

32) Which of the following statements about the permit system established by Congress through the 1990 amendments to the Clean Air Act is accurate?

A) Permits under the permit system are issued by EPA.

B) The permit system was established by Congress in 1970.

C) A state permitting program is approved by each concerned state.

D) The permits contain monitoring and reporting requirements.

33) Which of the following statements about vehicle emission standards under the Clean Air Act is accurate?

A) Individual owners need to get their vehicles certified by EPA for emission standards.

B) Manufacturers are required to warrant that certified vehicles will always meet emission standards.

C) EPA can order manufacturers to recall and repair vehicles that do not meet emission standards.

D) EPA performs emission tests on all the vehicles it certifies for emission standards.

34) As a result of regulation of fuel additives by the Clean Air Act, ________ was largely phased out of use as an octane enhancer in gasoline.

A) toluene

B) lead

C) methanol

D) nitrous oxide

35) Which of the following is true of U.S. efforts to curb greenhouse gas emissions?

A) EPA required large emitters of greenhouse gases to report their annual emissions.

B) The House of Representatives established a cap and trade program—similar to the acid rain control program—for greenhouse gas emissions.

C) EPA is barred from taking any actions to deal with greenhouse gas emissions.

D) EPA introduced the "tailoring rule" that requires all sources to address their greenhouse gas emissions as they get permits.

36) Which of the following is a part of the comprehensive federal plan to combat climate change?

A) Fossil fuel taxes

B) An executive order to have all federal buildings equipped with solar power

C) A federal mandate to reduce coal emissions by 2016

D) There is no comprehensive federal plan to combat global climate change

37) Which of the following was the earliest federal legislation enacted to protect water bodies against pollution?

A) The Marine Protection, Research, and Sanctuaries Act

B) The Safe Drinking Water Act

C) The Clean Water Act

D) The River and Harbor Act

38) The ________ provided that people had to obtain a discharge permit from the Army Corps of Engineers to deposit or discharge refuse into a navigable waterway.

A) The Marine Protection, Research, and Sanctuaries Act

B) The Safe Drinking Water Act

C) Toxic Substances Control Act

D) The River and Harbor Act

39) Which of the following statutes enacted by Congress is also known as the "Refuse Act"?

A) The Marine Protection, Research, and Sanctuaries Act

B) The Safe Drinking Water Act

C) The Clean Water Act

D) The River and Harbor Act

40) Who has the primary responsibility for preventing, reducing, and eliminating water pollution under the Clean Water Act of 1972?

A) The federal government

B) State government

C) Local (county) governments

D) Businesses

41) The 1972 amendments to the Federal Water Pollution Control Act (FWPCA) are known as the:

A) Ocean Dumping Ban Act.

B) River and Harbor Act.

C) Safe Drinking Water Act.

D) Clean Water Act.

42) Which of the following must obtain a National Pollution Discharge Elimination System (NPDES) permit?

A) A manufacturing firm buries its hazardous waste materials in a special dump.

B) A factory discharges industrial wastewater from a point source into a river.

C) An apartment building discharges domestic sewage to a publicly owned treatment works.

D) A chemical plant discharges wastewater to a publicly owned treatment works.

43) Which of the following can issue both National Pollution Discharge Elimination System (NPDES) permits and industrial discharge permits?

A) The states

B) The federal government

C) Sewage treatment plants

D) EPA

44) Anyone who discharges wastewater, other than just domestic sewage, to a publicly owned treatment works (POTW) must obtain what is known as a(n) ________ permit from the local sewage treatment plant where the discharge is being sent or from the state.

A) industrial discharge

B) Water Pollution Control System

C) National Pollution Discharge Elimination System

D) national industrial discharge

45) Which of the following is true of the Clean Water Act?

A) The act enforces criminal sanctions against offenders.

B) The act mandates civil sanctions against offenders.

C) The act is enforced by federal and state governments.

D) Violation of the act results in fines, but not imprisonment.

46) The Clean Water Act:

A) gives the federal government the primary responsibility for regulating the country's waters.

B) lacks provisions for private action by affected citizens or groups of citizens.

C) sets up a permit system for dredging and filling activities in wetlands.

D) allows discharge only of domestic sewage to a publicly owned treatment works.

47) The permit program for any dredging or filling activity in a wetland is administered by the:

A) Army Corps of Engineers.

B) Wetland Preservation Board.

C) Environmental Protection Agency.

D) National Institute of Health.

48) John owns a parcel of land on which he wants to build an apartment building. However, John's land is currently a swamp; he wants to drain it. John should apply for a permit to drain the swamp from:

A) the Army Corps of Engineers.

B) the Wetland Preservation Board.

C) the Environmental Protection Agency.

D) the National Institute of Health.

49) John owned a parcel of land on which he wanted to build an apartment building. However, his land is a swamp and he could not get a permit from the Army Corps of Engineers to drain the swamp. He had to buy a neighboring piece of land to build the apartment on. Since he has been effectively deprived of being able to make any economically viable use of his property, his attorney suggests that he may be able to pursue a claim for regulatory taking and receive compensation from the government for the fair market value of the interest of his land. What is the basis for such a claim?

A) The Marine Protection, Research, and Sanctuaries Act

B) The Fourth Amendment

C) The Clean Water Act

D) The Fifth Amendment

50) Which of the following is an essential responsibility of EPA under the Marine Protection, Research, and Sanctuaries Act?

A) Designating sites for disposal into oceans

B) Regulating disposal of dredge spoils

C) Overseeing dumping of sewage sludge

D) Conducting the dredging of harbors

51) Which of the following statements about ocean dumping is accurate?

A) The states have the responsibility for designating ocean disposal sites under the Marine Protection, Research, and Sanctuaries Act.

B) The Clean Water Act has provisions for regulation of the disposal of dredge spoils from dredging to keep harbors open.

C) The Marine Protection, Research, and Sanctuaries Act set up a permit system regulating the dumping of all types of materials into ocean waters.

D) The Clean Water Act required that all ocean dumping of municipal sewage sludge and industrial wastes be terminated by end of the 20th century.

52) Which of the following is true of the Safe Drinking Water Act?

A) The primary responsibility of complying with the established standards lies with the federal government.

B) It applies to public water bodies and water suppliers, and not to private suppliers.

C) EPA sets primary drinking water standards, minimum levels of quality for water consumed by humans.

D) It set up a permit system regulating the dumping of all types of materials into ocean waters.

53) Which agency regulates underground waste disposal units in the United States?

A) EPA

B) IRS

C) SEC

D) FTC

54) The ________ mandates proper management and disposal of wastes currently generated instead of past disposal sites.

A) Marine Protection, Research, and Sanctuaries Act

B) Resource Conservation and Recovery Act

C) Oil Pollution Prevention, Response, Liability and Compensation Act

D) Toxic Substances Control Act

55) Which of the following is true of the Resource Conservation and Recovery Act?

A) Failure to comply with its regulations incurs civil penalties, but not criminal penalties.

B) It gives the federal government and the states the authority to regulate facilities that generate, treat, store, and dispose of hazardous waste.

C) It focuses on cleaning up past disposal sites threatening public health and the environment.

D) Its programs are centrally coordinated and administered directly by the central government.

56) The term "Superfund" refers to:

A) the Resource Conservation and Recovery Act.

B) the pool of money collected to compensate victims of nuclear reactor disasters.

C) the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

D) the fund that the automobile industry must maintain to develop alternative-fuel vehicles.

57) The National Priority List was drawn by EPA with reference to which of the following statutes?

A) Comprehensive Environmental Response, Compensation, and Liability Act

B) Resource Conservation and Recovery Act

C) Resource Recovery Act

D) Toxic Substances Control Act

58) When EPA expends money to clean up a toxic waste dump under CERCLA it has legal authority to recover its costs from:

A) tax on chemicals and feedstock.

B) the state in question.

C) the responsible party or parties.

D) the "Superfund."

59) The Environmental Protection Agency administers the "Superfund." The cost of cleaning up a Superfund site can be substantial. Where does the money come from to pay for this?

A) Federal tax revenues

B) State tax revenues

C) Fees assessed against all chemical companies

D) Fees assessed against all corporations that use chemicals

60) Which of the following regulates the manufacture and use of pesticides?

A) FIFRA

B) TSCA

C) RCRA

D) CERCLA

61) Companion regulations promulgated by EPA and enforced by the Food and Drug Administration control the amount of pesticide residue that can remain on raw and processed food intended for human or animal consumption. These regulations establish what are known as:

A) allowances.

B) permits.

C) tolerances.

D) blocs.

62) The European Union regulatory scheme is premised on what is known as the ________ principle that requires companies to demonstrate that a chemical is safe before it is produced and distributed.

A) exclusion

B) precautionary

C) equivalence

D) uncertainty

63) Which of the following is true of the international standards for the premanufacture screening of new chemicals?

A) The U.S. regulation requires companies to demonstrate that a chemical is safe before it is produced and distributed.

B) The EU regulations dealing with premanufacture screening of chemicals requires companies to demonstrate that a chemical is safe before it is produced and distributed.

C) The EU restrictions on the production of chemicals that have been linked to health problems will have little or no effect on the U.S. chemical exports to the EU.

D) The European Union requires regulators to show that products or their uses present an unreasonable risk to human health or the environment before they can be regulated or taken off the market.

64) The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates what environmental area?

A) Agricultural chemicals

B) Clean drinking water

C) Fishing waters

D) City air quality

65) What year was the Toxic Substances Control Act passed?

A) 2001

B) 1970

C) 1981

D) 1976

66) The ________ was created in recognition that the problems of air and water pollution, solid waste disposal, water supply, and pesticide and radiation control were interrelated and required a consolidated approach.

A) Comprehensive Environmental Response Compensation and Liability Act

B) Toxic Substances Control Act

C) Environmental Protection Agency

D) Clean Air Act

67) Which of the following refers to EPA's informal rulemaking process whereby it provides notice to the public of what it proposes to do, takes public comment, and then finalizes its decision?

A) Negotiated rulemaking

B) Notice and comment

C) Administrative review

D) Final rule

68) Which of the following is not required to be in an environmental impact statement?

A) A discussion of the history of the type of action requested

B) A discussion of impacts that cannot be avoided

C) A discussion of alternatives

D) Detail of any irreversible commitments of resources

69) The text describes the three major contributors to air pollution. Which of the following is not one of the major contributors?

A) Livestock farming

B) Fuel combustion

C) Industrial processes

D) Solid waste disposal

70) Companies whose emissions are cleaner than required by law can sell their rights to emit more sulfur oxide to other companies by what is known as ________.

A) tolerances

B) allowances

C) overages

D) surplus

71) In the case in the text, United States v. Ohio Edison Company, why did the court hold that the updates on the utility's equipment were subject to preconstruction review?

A) The projects were intended to increase hours of operation.

B) Even though the projects consisted of routine maintenance, there would be a substantial increase in emissions.

C) The projects cost $136.4 million.

D) The projects were not routine and they would result in a substantial increase in emissions.

72) In the case in the text, Massachusetts v. Environmental Protection Agency, the U.S. Supreme Court held that:

A) EPA failed to demonstrate public policy required a different result.

B) EPA was not legally justified to refuse to regulate greenhouse gas emission from automobiles.

C) the State of Massachusetts did not have legal standing to sue EPA.

D) the State of Massachusetts failed to demonstrate global warming caused the water to rise.

73) The ________ is the organization responsible for certifying that an organization meets the requirements of ISO 14001 in the United States.

A) Environmental Protection Agency

B) Environmental Management System

C) American National Standards Institute

D) National Environment Institute

74) ________ are transition zones between land and open water.

A) Bogs

B) Meadows

C) Wetlands

D) Creeks

75) United States v. Hopkins, the case in the text, is an example of:

A) civil penalties for violating the Clean Water Act.

B) criminal penalties for violating the Clean Water Act.

C) the mistake of law defense.

D) the mistake of fact defense.

76) In Exxon Shipping Company v. Baker, the case in the text, the U.S. Supreme Court decided that the jury's award of $2.5 billion in punitive damages coupled with $507.5 million in compensatory damages was:

A) excessive as a matter of maritime common law.

B) excessive because the jury did not have a rational basis for the awarded amount.

C) appropriate because punitive damages are meant to punish.

D) appropriate because the jury's method of calculating punitive damages was reasonable.

77) The ________ focuses on cleaning up past disposal sites threatening public heath and the environment.

A) Resource Conservation and Recovery Act

B) Comprehensive Environment Response, Compensation, and Liability Act

C) Oil Pollution Prevention, Response, Liability and Compensation Act

D) Marine Protection, Research, and Sanctuaries Act

78) A form known as a ________ must accompany all shipments of hazardous waste from the point of generation until its final treatment or disposal.

A) generator

B) ticket

C) permit

D) manifest

79) In the case in the text, United States v. Southern Union Company, the court held that the defendant was criminally liable because:

A) it stored hazardous waste in violation of the Comprehensive Environmental Response, Compensation, and Liability Act.

B) it stored "pure mercury."

C) it stored hazardous waste, albeit unknowingly.

D) it stored hazardous waste without a Resource Conservation and Recovery Act permit.

80) In United States v. Domenic Lombardi Realty, the case in the text, why did the court decide that Lombardi Realty could not use the innocent landowner defense?

A) Lombardi Realty contributed to the release of PCBs at the site.

B) Lombardi Realty acted in accordance with the environmental assessment it ordered.

C) Lombardi Reality did not pay fair market value for the property.

D) Lombardi Realty was not in immediate possession of the property.

81) Which of the following powers is not given to EPA through the Federal Insecticide, Fungicide, and Rodenticide Act?

A) Control the amount of pesticide residue that can remain on raw and processed food intended for human or animal consumption.

B) Register pesticides before they can be sold.

C) Provide for the certification of appliers of pesticides designated for restrictive use.

D) Register and inspect pesticide manufacturing establishments

82) The United States requires regulators of toxic substances to show that products or their uses present a(n) ________ risk to human health or the environment before they can be regulated or taken off the market.

A) likely

B) unreasonable

C) dangerous

D) high

83) The ________ was enacted to ensure that communities and citizens were aware of chemical hazards in their area.

A) Comprehensive Environment Response, Compensation, and Liability Act

B) Marine Protection, Research, and Sanctuaries Act

C) Emergency Planning and Community Right-to-Know Act

D) Resource Conservation and Recovery Act

84) ________ refers to the development of techniques to genetically manipulate organisms.

A) Bioengineering

B) Molecular engineering

C) Biomanufacturing.

D) Biotechnology

85) Which of the following is not responsible for regulating research and use of biotechnology?

A) the Environmental Protection Agency

B) the Department of Agriculture

C) the Food and Drug Administration

D) the individual states

86) What are the essential components of an environmental impact statement? How are business people affected by the environmental impact statement requirement?

87) The Coriolis Corporation is building a new widget plant near Honolulu, Hawaii. Coriolis is not worried much about the expenses of installing air pollution control equipment considering Honolulu came out as the U.S. city with the best air quality according to the "State of the Air 2011" report by the American Lung Association. Do you agree with Coriolis's stance? Under the Clean Air Act, what kind of air pollution control equipment must Coriolis install in the plant? Why?

88) How does the Clean Water Act regulate wetlands?

89) How are the cleanups of hazardous waste sites required by CERCLA funded?

90) What is meant by the term "National Priority List"?