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

question 2

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 the effort by XYZ Bank to recover against Selena based upon Alice's default?

• A) The bank will be able to recover because it was in privity with Selena.
• B) The bank will be able to recover because it was in privity with Alice, and Alice was in privity with Selena.
• C) The bank will be able to recover because Selena was aware that her audit would be used to obtain a loan.
• D) The bank will not be able to recover because it cannot establish reliance upon Selena's work.
• E) The bank will not be able to recover because Selena and Alice had specifically agreed that the audit would only be used to obtain a loan from Alice's uncle.