Sara and Sally rely on the statements of Alice, an accountant. In a lawsuit brought by Sara and Sally against Alice for fraud, Alice seeks to avoid liability based on the fact that neither Sara nor Sally was in privity of contract with Alice. Alice knew
Sara might rely on the financial information provided, but Alice did not know of Sally or anyone in her position. Can Sara and Sally recover against Alice?
Sara will be able to recover against accountant Alice for fraud because privity is immaterial in considering the issue of whether an accountant is liable for fraud.
Sally will not recover, however, because the third person must either be known to the accountant or a member of a class known to the accountant.
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Which of the following was a core demand of colonial leaders seeking independence from England as expressed in the Declaration of Independence?
a. an end to the practice of impressment b. government based on the consent of the governed c. lower taxation d. the right to expand westward
Which of the following is a true statement about advertising?
A) For most organizations, advertising is one of the smallest marketing expenditures. B) The most important measure of advertising is its entertainment value. C) Informing consumers about a brand is typically a short-term advertising effort. D) The construction of an advertising campaign should be guided by communication objectives. E) Call-to-action advertising asks for a long-term response from consumers.
If the final registration statement contains a material misstatement or omission, the purchaser of the security can recover damages from
a. everyone who signed the registration statement.. b. the company's directors, but not the chief officers. c. the experts who signed the registration statement, but not any other parties. d. the issuer of the security, but not the company's directors or chief officers.
All parties to a negotiable instrument will be discharged when any party liable on it pays to a holder the full amount due
Indicate whether the statement is true or false