Rick Prepared Financial Statements for MegaCorp Knowing That It Was

question 32

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) Rick would be liable under both the foreseeable doctrine and the Restatement doctrine.

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Definitions:

Relationships

Bonds or connections between individuals, groups, or objects, characterized by emotional, social, or other forms of interaction.

Erik Erikson

A developmental psychologist known for his theory on the psychological development of humans in eight stages from infancy to adulthood.

Basic Biological Needs

Fundamental physiological necessities for survival, such as food, water, shelter, and sleep.

Sound Attachments

Emotional bonds between individuals, often formed through verbal communication, speech, and shared musical experiences.