Brock Brocklin, a stockbroker, invited Tom Thomson, a long-term client, to lunch to sell some stocks. Tom brought a friend, Clive Clernons. Brock mistakenly recommended Morden Plastics as being a good investment
The three martinis clouded his memory: the company name should have been Borden Plastics. Tom didn't buy Morden Plastics, but Clive did and lost heavily. Now Clive wants to sue Brock for negligence advice. Which of the following is true?
A) There is no right to sue for negligent use of words.
B) There was no contract between Brock and Clive so Clive has no legal basis to sue.
C) Clive will have to establish that he was in the scope of duty owed by Brock to win his action.
D) Clive will only have to prove that Brock was careless to win his action.
E) Clive should sue Tom for breach of fiduciary duty.
C
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