An Exculpatory Clause Most Likely Would Be Held to Limit

question 47

Multiple Choice

An exculpatory clause most likely would be held to limit or disclaim liability for malpractice: ______.

• A) in an action based on fraud.
• B) in a suit brought by a third person.
• C) when the accountant can reasonably be expected to stand behind the information in question.
• D) when the clause is conspicuous, unambiguous, and clear.

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Definitions:

Breach of Duty

A violation or neglect of a responsibility or duty imposed by law which can lead to legal consequences.

Competing Business

A company that offers similar goods or services and operates in the same market segment as another business.

Automotive Repair

The process of fixing or maintaining vehicle machinery and systems to ensure its proper functioning.

Majority Vote

A decision rule used in many organizations, under which any motion or proposal is passed or approved if it receives more than half of the votes cast.