Quibble Game Company's Liabilities Exceed Its Assets

question 36

Multiple Choice

Quibble Game Company's liabilities exceed its assets.Quibble hires Roo & Slay,an accounting firm,to prepare a balance sheet.Through Roo & Slay's negligent omissions,the sheet shows a positive net worth.Town Bank relies on the balance sheet to make a loan to Quibble.When Quibble defaults,Town files a suit against Roo & Slay.Under the Restatement rule,Roo & Slay is most likely

• A)liable because Roo & Slay owed a duty of care to Quibble.
• B)liable because Roo & Slay owed a duty to any foreseeable user.
• C)liable if Roo & Slay knew that Town would rely on the balance sheet.
• D)not liable because Roo & Slay and Town were not in privity.

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Definitions:

Psychodynamic

An approach in psychology which emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions.

Psychotherapy

A form of therapy involving psychological methods, particularly when based on regular personal interaction, to help a person change behavior and overcome problems in desired ways.

Underlying Drives

Fundamental motivations or impulses that influence behavior and decision-making.

Health Insurance

Financial protection that covers the cost of an individual's medical and surgical expenses based on the type of insurance coverage secured.