CERCLA

Plain English Definition: CERCLA is an acronym that stands for Comprehensive Environmental Response, Compensation, and Liability Act, which is the federal law that governs the cleanup of land that has been damaged by hazardous materials. Under the law, a list of sites with such damage is maintained by the federal government (the “National Priorities List”). CERCLA is relevant to business acquisitions because it can create liability for the Buyer if land used by the Business after the acquisition has been damaged by hazardous materials in the past, especially if the land in question is on the National Priorities List.