1. Alfred’s Asbestos Alcove in Chester, Pennsylvania is probably the last factory in the country that doesn’t know that asbestos is a carcinogen. Business has been slow for years, but Alfred manages to make the factory’s mortgage payment to Pleasantville Bank from his inheritance from his mother’s life insurance policy. The inheritance finally runs out and Alfred defaults on the mortgage. The bank, which has been helping to manage the site for years, forecloses and takes possession of the property. Shortly thereafter, the federal government announces its intention to clean up the business site pursuant to the Comprehensive Environmental Response Compensation and Liability Act. Pleasantville Bank is the new owner. Will it have to contribute to the cleanup?
A. Yes, as the landowner it will be required to.
B. No, a secured creditor is exempt from liability
C. No, the bank is an innocent landowner
D. Yes, although it is a secured creditor, by participating in the site’s management, the bank loses its exemption.
2. Jorge is a jeweler and owns two jewelry stores. One day, he stops to have lunch at a fancy restaurant in Palm Beach before heading to Boca Raton to show a diamond-studded tiara to a Yoruba socialite and oil heiress. He has placed the tiara in a secret compartment in the trunk of his Bentley. He hands the car keys to the restaurant’s valet before going in with his mistress for a meal. While he’s dining, the valet parker is distracted by a beautiful leopard sitting under a gazebo and forgets to remove the car keys. Steve is leaving the Wendy’s across the street with several friends when he sees the unattended Bentley idling. While the valet parker stares at the leopard, Steve and his friends jump in the Bentley, throw the mistress’ purse out of the window and ride away. They each are waving fists out of the car as they speed off, rounding the closest corner on two wheels. Days later the car is found parked in a handicapped parking space at the Miami airport. Steve and his friends are never heard from again. The tiara is missing from the trunk. Jorge wants to sue the restaurant for the loss of the tiara and damage to the car. Will he win?
A. Jorge will win as to the tiara and the car because the bailee failed to exercise reasonable care in monitoring the car
B. The valet will win as to the tiara because it had no notice that the tiara was in the trunk. Jorge will win as to the car.
C. Jorge will win as to the tiara and the car because the valet will be strictly liable for any criminal conduct on its property
D. None of the above