Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

Exercise 2

Dusty is trying to buy an office building to house his growing consulting firm. When Luke, a landlord, asks to see a set of financials, Dusty asks his accountant, Ellen, to prepare a set for Luke. Dusty shows these financials to a number of landlords, including Carter. Dusty rents from Carter. Ellen has been careless, and the financials are inaccurate. Dusty cannot pay his rent, and Carter files suit against Ellen. Which of the following statements is true
(a) Carter will win because Ellen was careless.
(b) Carter will win because Ellen was careless and she knew that landlords would see the financials.
(c) Carter will lose because Ellen did not know that he would see the financials.
(d) Carter will lose because he had no contract with Ellen.