{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

BUSINESSLAW CHAPTER 47 - Business Law

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
MARCH 2009 BUSINESS LAW CHAPTER 47 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. No, it is not a defense. Not knowing that the CFA were to use the financial statements to obtain a bank loan does not make the accountant not liable for his actions. Obtaining a bank loan is foreseeable. 2. No, she was not liable because the creditors were not known by Roanne as those who would receive the financial statements. 3. Yes, they can recover. The accountant did not inform the Ronsons of the accrued interest and this is malpractice. The accountant would have to pay back the accrued interest that was not divulged to the Ronsons. 4. No, this defense was not valid. Just because Shatterproof was not the accountant's client does not stop Shatterproof from suing. If accountants prepare statements on which third parties are relying upon, those third parties can recover their losses if the statements were false. 5. 6. No, they can not recover. Since the statements were prepared for the
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern