In a State That Has Adopted the Ultramares Rule and Uses

question 54

Multiple Choice

In a state that has adopted the Ultramares rule and uses the primary benefit test,who amongst the following may hold an accountant liable for common law negligence?

• A)Only the client.
• B)Only the client and a third party that the accountant knew would rely on the accountant's work for a particular purpose.
• C)Only a third party that the accountant knew would rely on the accountant's work for a particular purpose,and others who are in the same limited class as that third party.
• D)Any third party that is a foreseeable user of the accountant's work may hold him/her liable if that third party suffers a loss as a direct result of the accountant's negligence.

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Definitions:

Electrical Currents

The flow of electric charge through a conductor, measured in amperes.

Ohms

A unit of electrical resistance defining the electrical opposition to current flow.

Linear Inequalities

Equations that involve inequalities (like <, ≤, >, ≥) between variables that, when graphed, form lines that split the plane into half-spaces.

System

A collection of rules or methods that dictate how something is executed; a structured plan or approach.