In a Common Law Action Against an Accountant in a State

question 18

Multiple Choice

In a common law action against an accountant in a state following the Ultramares doctrine, lack of privity is a viable defense if the plaintiff

• A) Can prove the presence of gross negligence which amounts to a reckless disregard for the truth.
• B) Bases the action upon fraud.
• C) Is the client's creditor who sues the accountant for negligence.
• D) Is the accountant's client.

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Definitions:

Drive

An aroused state that occurs because of a physiological need.

Optimum Arousal Theory

The theory that individuals perform best and are most productive at a moderate level of arousal, rather than at lower or higher levels.

Moderate Arousal

An optimal level of alertness or activation that enhances performance on tasks or activities, according to Yerkes-Dodson Law.

Biological Deprivation

A lack of essential biological needs, such as food, water, and sleep, that can lead to severe physical and psychological consequences.