Murray,a Chartered Accountant,gave Free Financial Advice to Sabrina

question 8

Multiple Choice

Murray,a chartered accountant,gave free financial advice to Sabrina.He told her the Boom company "was sure to make money" and encouraged her to invest in it.In fact,Murray had not properly investigated the company.Sabrina followed Murray's advice and lost all of her investment.If she sued Murray for negligent misstatement which of the following tests would the court apply?

• A)Should Murray have reasonably foreseen that Sabrina would rely on the statement?
• B)Was Murray's statement seriously made in serious circumstances?
• C)Did Sabrina reasonably rely on Murray's advice?
• D)Did Murray fail to exercise reasonable care?
• E)All of the above.

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Definitions:

Cephalocaudal

A pattern of growth and development in organisms where development begins at the head and progresses towards the tail or feet.

Proximodistal

A principle of physical growth that states development proceeds from the center of the body outward.

Independence of Systems

The concept that different systems, whether mechanical, biological, or computational, can operate autonomously without interference from each other.

Cephalocaudal

A pattern of growth where development starts at the head and progresses downwards towards the feet.