Do you think cpc should be held liable

Assignment Help Business Law and Ethics

Reference no: EM131917448

Problem: Ott Chemical Co. polluted the ground at its Michigan plant. CPC International created a wholly owned subsidiary to buy Ott, which was accomplished in 1965. CPC retained the original Ott managers. Pollution continued through 1972 when CPC sold Ott. In 1981 the U.S. EPA began a cleanup of the site. To recover some of the tens of millions in cleanup costs, the EPA sued CPC (called Bestfoods) among other potentially responsible parties. The Superfund law places responsibility on anyone who "owned or operated" a property when pollution was deposited. The district court held that CPC was liable because of its active participation in Ott's business and its control of Ott's decisions in that it selected the Ott board of directors and placed some CPC managers as executives at Ott.

a. Do you think CPC should be held liable? Why or why not?

b. What test would you employ to determine whether a parent corporation should be liable for a subsidiary's pollution? See United States v. Bestfoods, 524 U.S. 51 (1998).

Reference no: EM131917448

Questions Cloud

Preparation and evaluation of financial statements : Prepare Income statement and balance sheet for the month ended June and Calculate and analyse working capital of the Interwood

Distance between members of the same species : What environmental forces (sometimes catastrophic, ex. Fire, landslides) can segment an environment and put distance between members of the same species

What criteria should the court use to decide the outcome : Because of the spread of the West Nile virus in the state of New York, an insecticide spraying program was implemented to control the mosquitoes responsible.

Write a positive statement and a normative statement : Write a positive statement and a normative statement about your favorite hobby.

Do you think cpc should be held liable : Ott Chemical Co. polluted the ground at its Michigan plant. CPC International created a wholly owned subsidiary to buy Ott, which was accomplished in 1965.

Describe an economic model you know : Describe an economic model you know. What assumptions does the model make? Are the assumptions reasonable?

Why is the scientific method important : Using the steps of the Six steps of the scientific method, explain why each step is important when performing an experiment.

What does the model predict about cause and effect : What does the model predict about cause and effect? Why is it important for a good economic model to make clear assumptions?

Describe the chemistry-level mechanisms : Please identify a biological process that is of interest to you, and describe the chemistry-level mechanisms that make the process work.

User Account

All Pages