Gift Basket Company's liabilities exceed its assets. Gift Basket hires Hill &Dale, an accounting firm, to prepare a balance sheet. Through Hill & Dale'snegligent omissions, the sheet shows a net worth. Investment Bank relies on the balance sheet to make
a loan to Gift Basket. When Gift Basket defaults, the bank files a suit against Hill & Dale. Under the Restatement rule, Hill & Daleis most likely
a. liable because Hill & Daleowed a duty of care to Gift Basket.
b. liable because Hill & Daleowed a duty to any foreseeable user.
c. liable if Hill & Daleknew that the bank would rely on the balance sheet.
d. not liable because Hill & Daleand the bank were not in privity.
Answer: C
You might also like to view...
Restrictive governments often reduce or eliminate citizen access to the Internet and social media sites in order to:
A. Increase bandwidth for government usage. B. Impose religious or ideological views. C. Suppress political dissent. D. Both of these answers are correct: Increase bandwidth for government usage; and suppress political dissent.
The third step of the introduction, demonstrating importance and credibility, lets the audience know ______.
a. what your main points will be b. how you chose the topic c. why they should care about the topic d. that you are an expert in the topic
Public relations deals with building corporate image and positive relations with an organization's publics
Indicate whether the statement is true or false
The influence of organizational culture on change efforts is stronger than the influence of national culture.
Answer the following statement true (T) or false (F)