Sara and Sally Rely on the Statements of Alice, an Accountant

question 10

Essay

Sara and Sally rely on the statements of Alice, an accountant. In a lawsuit brought by Sara and Sally against Alice for fraud, Alice seeks to avoid liability based on the fact that neither Sara nor Sally was in privity of contract with Alice. Alice knew Sara might rely on the financial information provided, but Alice did not know of Sally or anyone in her position. Can Sara and Sally recover against Alice?

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Definitions:

Dividends

A share of profits distributed by a corporation to its shareholders, typically made as a fixed payment per share of stock.

Free Market Ethical Perspective

An ethical viewpoint that emphasizes the importance of allowing markets to operate without undue government interference, advocating for voluntary transactions and individual liberty.

Utilitarianism

A philosophical theory that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Shareholder Well-being

The state of health, happiness, and prosperity of individuals who own shares in a corporation.