When the Privity Rule Is Applied, a Bank Lending Money

question 15

True/False

When the privity rule is applied, a bank lending money to the client of an accountant cannot sue the accountant for malpractice.

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Definitions:

Authoritative

Commanding and self-assured; used to describe someone or something that is recognized as being in control or an expert.

Indulgent

Characterized by yielding to the desire to satisfy one's own needs or wishes; often associated with leniency or permissiveness.

Hot

Subjectively experienced or described as having a high temperature or giving off heat.

Induction

A method of reasoning that draws general principles from specific instances, moving from particular to general.