__________ Impose Liability on the Accountant to a Total Stranger

question 39

Multiple Choice

__________ impose liability on the accountant to a total stranger who gets possession of the accountant's work and then sustains a loss because of a false statement in the work.

• A) No courts
• B) A minority of courts
• C) A majority of courts
• D) All courts

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Definitions:

Purchasing

involves the process of acquiring goods or services in exchange for monetary compensation.

Apartment Building

A residential building containing multiple apartments or units meant for separate tenants.

Warranty

A promise, statement, or other representation that an item has certain qualities; also, an insured’s promise to abide by restrictions, especially those written into an insurance policy. Also, an obligation imposed by law that an item will have certain qualities. Warranties made by means of a statement or other affirmation of fact are called express warranties; those imposed by law are implied warranties.

Insured

A party that is protected by an insurer against losses caused by the risks specified in an insurance policy.