Arthur Walker, an accountant, prepared financial statements for Globalus Ltd., a public company whose shares traded on the stock exchange. A shareholder of Globalus was reading the document on the subway and forgot it
Frank Nelson picked the statements up and bought shares in the company based on what he had read. Walker had made a careless mistake and Frank's investment turned out to be worthless. Which of the following is TRUE?
A) Walker does not owe a duty of care to Frank in tort law.
B) Walker does owe a duty of care to frank in tort law.
C) The financial statements are words and there is no right to sue based on the careless use of words.
D) Walker is liable to Frank because it was reasonably foreseeable that someone might pick up a copy of the financial statements.
E) Frank can only sue the Globalus shareholder if he can find that person
A
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