Multiple Choice
Quibble Company's liabilities exceed its assets.Quibble hires Roo & Slay,an accounting firm,to prepare a balance sheet.Through Roo & Slay's negligent omissions,the sheet shows a net worth.Town Bank re?lies on the balance sheet to make a loan to Quibble.When Quibble de?faults,Town files a suit against Roo & Slay.Under the Restatement rule,Roo & Slay is most likely
A) liable because Roo & Slay owed a duty of care to Quibble.
B) liable because Roo & Slay owed a duty to any foreseeable user.
C) liable if Roo & Slay knew that Town would rely on the balance sheet.
D) not liable because Roo & Slay and Town were not in privity.
Correct Answer:
Verified
Correct Answer:
Verified
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