Gift Basket Company's liabilities exceed its assets. Gift Basket hires Hill & Dale, an accounting firm, to prepare a balance sheet. Through Hill & Dale's negligent 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 (Third) of Torts, Hill &
Dale is most likely
A) liable because Hill & Dale owed a duty of care to Gift Basket.
B) liable because Hill & Dale owed a duty to any foreseeable user.
C) liable if Hill & Dale knew that the bank would rely on the balance sheet.
D) not liable because Hill & Dale and the bank were not in privity.
C
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