Why Has the Reaction to the Verdict in Caparo Industries

question 44

Multiple Choice

Why has the reaction to the verdict in Caparo Industries generally been unfavourable?

• A)It is strongly thought that the loss was not quantifiable.
• B)The verdict appears to treat auditors more favourably than it treats other experts on whom third parties rely.
• C)The principle of proximity was not sufficiently established.
• D)It is felt that the auditors were not responsible.

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Definitions:

Statutory Liens

Statutory liens are legal claims against property that are established by statute to secure the payment of a debt or obligation, such as tax liens.

Cosurety

One of two or more individuals or entities jointly responsible for fulfilling the obligation of a surety, sharing liability for ensuring the performance or payment of an obligation.

Right of Contribution

The legal right of a defendant or debtor to collect from co-defendants or co-debtors their share of a common liability or debt.

Right of Subrogation

is a legal right allowing one party to assume another's rights in order to pursue recovery from a third party responsible for a loss.