Fact Pattern 14-3AFlip, an accountant, certifies an audit for Erstwhile Corporation, Flip's client, knowing that Erstwhile will use the audit to obtain a loan from Deepwater Bank. Flip believes that the audit is true and does not intend to deceive the bank, but does not check the audit before certifying it.Refer to Fact Pattern 14-3A. On learning the truth, Deepwater's chief loan officer confronts Flip, who says, "I didn't know." This is
A. a mistake of value.
B. innocent misrepresentation.
C. negligent misrepresentation.
D. unconscionable.
Answer: C
You might also like to view...
Read the information about Cobb Company. What is Cobb's income from operations?
a. $ 1,600 b. $ 2,000 c. $ 2,200 d. $ 2,800
An advantage of a bottom-up retail plan is the _____
a. ability to keep the plan secret b. ability to handle complex assumptions c. active involvement of lower- and middle-level managers d. ability to gain acceptance by senior-level retail personnel
Operating characteristics describe the methods used by the service process
Indicate whether this statement is true or false.
Based on the text, if employees sue a company who transmits their names and Social Security numbers to managers in the company in an unsecured manner, how might a court rule? (See the Bodah v. Lakeville Motor Express, Inc case.)
a. The court might rule that a publication occurred and that the employees could proceed with a cause of action based on invasion of privacy. b. The court might rule that the employees had no right to privacy in relation to distribution of social security numbers because the numbers are issued by the government. c. The court might rule that the employees could not proceed with an action for invasion of privacy because no publication of the information at issue occurred. d. The court might rule that the employees could not proceed with an action for invasion of privacy because health information was not involved.