Under the Restatement Test,as Discussed in the Case in the Text,Bily

question 58

Multiple Choice

Under the Restatement Test,as discussed in the case in the text,Bily v.Arthur Young & Co.,which of the following is true regarding whether XYZ Bank can recover against Selena based upon the loan to Bob?

• A) XYZ Bank will not be able to recover because it was not in privity with Selena.
• B) XYZ Bank will not be able to recover because Selena did not know that Bob planned to get a loan from XYZ Bank.
• C) XYZ Bank will not be able to recover $100,000 from Selena because the transaction went from $10,000 to $100,000, increasing materially the audit risk.
• D) XYZ Bank will be able to recover from Selena because there was privity of contract.
• E) XYZ Bank will be able to recover from Selena only if they have been a client of hers in the past.

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Definitions:

Valence Electrons

Electrons in the outermost shell of an atom that are available for bonding with other atoms.

Atomic Number

The number of protons in the atomic nucleus of an atom, which uniquely identifies the element to which the atom corresponds.

Chemical Behavior

Describes the reactions and interactions of substances based on their chemical properties and the conditions under which they occur.

Neutrons

Particles within an atom's nucleus that carry no electric charge and have a mass marginally greater than that of protons.