Which of the Following Is True Regarding States Adhering to the Privity

question 37

Multiple Choice

Which of the following is true regarding states adhering to the privity or near-privity rule for third party liability of accountants?

• A) All the states utilize it.
• B) All states except one utilize it.
• C) Three-quarters of the states utilize it.
• D) One-half of the states utilize it.
• E) Only a few states utilize it.

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Definitions:

Private Law

The branch of law that deals with relationships between individuals or institutions, as opposed to public law which concerns itself with the state and individuals.

Damages

Financial compensation ordered to be paid as a remedy for harm caused by a breach of duty or negligence.

Civil Law

A legal system based on written codes and statutes, as opposed to common law, which is based on judicial precedents and interpretations.

Criminal Law

The body of law that relates to crime and punishment, defining offenses and setting penalties for violations.