Tort Actions Against CPAs Are More Common Than Breach of Contract

question 9

Multiple Choice

Tort actions against CPAs are more common than breach of contract actions because

• A) there are more torts than contracts.
• B) the burden of proof is on the auditor rather than on the person suing.
• C) the person suing need prove only negligence.
• D) the amounts recoverable are normally larger.

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Definitions:

Consumer Taste

The preferences and expectations of consumers regarding products and services, which can influence their buying behavior.

Price Ceilings

A government-imposed limit on the price charged for a product to prevent prices from rising to a certain level above equilibrium.

Price Floors

Government or regulatory-set minimum prices for goods or services, aimed at preventing prices from falling too low.

Price

The cost involved in purchasing a specific good or service.