Series 79 practice questionmediumEnvironmental due diligence – successor liability
Which of the following is TRUE regarding environmental liabilities in an asset sale?
- ABuyer may still be responsible for certain environmental liabilities as a successor under federal law✓ Correct answer
- BAll environmental liabilities always remain with the seller
- CThere are no environmental liabilities in an asset sale
- DOnly state law governs successor liability for environmental claims
Explanation
Why A — Buyer may still be responsible for certain environmental liabilities as a successor under federal law
Federal law (e.g., CERCLA) can impose successor liability for environmental issues, even in asset sales. Not all liabilities remain with the seller, and both federal and state law may apply.
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