In an Action Against a CPA in a Jurisdiction That

question 97

Multiple Choice

In an action against a CPA in a jurisdiction that follows the Ultramares doctrine, lack of privity is a viable defense provided the plaintiff:

• A)is the client's creditor who sued the CPA for negligence.
• B)can prove gross negligence.
• C)violated the Securities Act of 1933.
• D)violated the Securities Act of 1934.

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Definitions:

Market Price

The present value at which a good or service may be purchased or sold in a market.

Option Clearing Corporation

An organization that facilitates the clearing and settlement of options contracts, ensuring their performance.

Stock Options

Contracts that grant the holder the right, but not the obligation, to buy or sell a stock at a specified price before a specified date.

Break-Even Price

The price level at which an investment must reach for an investor to recover their initial investment without making a profit or incurring a loss.