Quibble Game Company's Liabilities Exceed Its Assets

question 36

Multiple Choice

Quibble Game Company's liabilities exceed its assets.Quibble hires Roo & Slay,an accounting firm,to prepare a balance sheet.Through Roo & Slay's negligent omissions,the sheet shows a positive net worth.Town Bank relies on the balance sheet to make a loan to Quibble.When Quibble defaults,Town files a suit against Roo & Slay.Under the Restatement rule,Roo & Slay is most likely

• A)liable because Roo & Slay owed a duty of care to Quibble.
• B)liable because Roo & Slay owed a duty to any foreseeable user.
• C)liable if Roo & Slay knew that Town would rely on the balance sheet.
• D)not liable because Roo & Slay and Town were not in privity.

---

Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors, thoughts, and emotions.

Collective Unconscious

A concept in psychoanalysis that suggests there exist universal psychic structures inherent to all human beings.

Commonsense Observations

Commonsense observations are judgments or inferences made based on everyday experience and intuition rather than systematic empirical evidence.

Overly Simple

Lacking in complexity or depth, often to the detriment of understanding or addressing an issue fully.