The parent corporation could have CERCLA liability for a subsidiary.

Question

Quizplus · Accepted Answer

The parent corporation can be held liable for the environmental contamination caused by its subsidiary under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) if it can be shown that the parent corporation either controlled, directed, or participated in the subsidiary's activities that led to the contamination. This is known as parent company liability or the "corporate veil" theory.

The Parent Corporation Could Have CERCLA Liability for a Subsidiary