Rick Prepared Financial Statements for MegaCorp Knowing That It Was

question 10

Multiple Choice

Rick prepared financial statements for MegaCorp knowing that it was going to use his statements to apply for a loan with Big Bank.When Big Bank turned MegaCorp down,it applied to Fourth Bank for a loan.MegaCorp presented the statements prepared by Rick to Fourth Bank,which gave the company a loan.It was discovered that Rick was negligent in preparing the statements,and Fourth Bank sued Rick.Under which of the following tests is Rick liable?

• A)Ultramares doctrine
• B)Foreseeable doctrine
• C)Restatement doctrine
• D)Both the foreseeable doctrine and the Restatement doctrine

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