Herington Shoes, Inc., a giant shoe manufacturer, sold its land to Naylor Appliances, Inc.The land was later found to be highly contaminated with harmful chemicals.Herington, Inc, however, had sold the land to Naylor, Inc."AS IS" with a provision that if there are any cleanup costs, Naylor would have to pay for them entirely and would hold Herington harmless for any of the costs.Eventually, Naylor Appliances went out of business and filed for bankruptcy.The EPA is now pursuing Herington Shoes, and no other party, for the cleanup costs.In this situation:
A) Herington is still responsible because the "AS IS" provision does not affect the EPA's rights.
B) Herington is responsible for only its share of the contamination.
C) Herington is responsible only if the EPA can prove it had intentionally dumped the contaminants.
D) two of the above.
E) none of the above.
Correct Answer:
Verified
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