1.Distinguish Between the Following

question 48

Essay

1.Distinguish between the following:
(a) primary versus other beneficiaries and (b) foreseen group versus foreseeable parties. Identify the principal cases that extended the accountant's liability for ordinary negligence to each of the parties identified in (b) above.

2.Contrast the terms "contributory negligence" and "due diligence defense."

3.Explain the essence of Section 10 and Rule 10b-5 of the Securities Exchange Act of 1934. Indicate the landmark case pertaining to this rule and the findings of the court in the case.

4.Why is it advantageous for a plaintiff to bring suit under the Racketeer Influenced and Corrupt Organization Act (RICO)? May a CPA be liable under RICO for ordinary negligence? Explain.

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Definitions:

Financing Statement

A document filed by a secured party to give public notice of their interest in the property of a debtor, typically used in secured transactions.

Collateral

Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower fails to pay.

Purchase-Money Security Interest

A legal claim or lien on property that secures payment of the price or an obligation incurred for the property's purchase.

Consumer Good

A good used or bought for use primarily for personal, family, or household purposes.