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Leonard Was an Entrepreneur Who Owned a Restaurant Business Called,Blue

Question 32

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Leonard was an entrepreneur who owned a restaurant business called,Blue Moon Diner Ltd.The business was located in an old house owned by Leonard.Lauren,the accountant,was preparing financial statements for the purpose of selling Blue Moon Diner Ltd.She assumed that the house was an asset of Blue Moon Diner Ltd.and did not review the land title or check with Leonard.Alicia purchased the business for $500 000,believing that the house was an asset worth $450 000 and the business was worth $50 000.Can she sue Lauren?


A) Yes,Lauren had a duty of care to Alicia.
B) No,Lauren did not have a duty of care to Alicia.
C) Yes,Lauren breached the standard of care for an accountant.
D) Yes,Lauren had a duty of care to Alicia and breached the standard of care for an accountant.
E) No,Lauren did not have a duty of care to Alicia and breached the standard of care for an accountant.

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