Doug Is an Accountant Whose Clients Include Everyday Products, Inc

question 23

Multiple Choice

Doug is an accountant whose clients include Everyday Products, Inc. (EPI) . Under the Ultramares rule, if Doug is negligent in his work for EPI, he could be liable to

• A) EPI and any third party.
• B) EPI and third parties who are foreseen users of his work for EPI.
• C) EPI and third parties who are reasonably foresee?able users of his work for EPI.
• D) EPI only.

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Definitions:

Passive Margin

The transition between oceanic and continental crust that is not an active plate boundary, typically characterized by a broad continental shelf and little seismic activity.

Island Arc

An island arc is a type of archipelago, composed predominantly of a series of volcanoes, which arcs roughly parallel to the boundary of oceanic tectonic plates that are being subducted beneath lighter continental plates.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, potentially leading to the formation of a new ocean basin.

Passive Margin

A continental margin that is not associated with plate boundaries and hence experiences little seismic activity.