Fact Pattern 14-A3 (Questions A16-A17 Apply)

question 33

Multiple Choice

Fact Pattern 14-A3 (Questions A16-A17 apply)
Flip,an accountant,certifies an audit for Erstwhile Corporation,Flip's client,knowing that Erstwhile will use the audit to obtain a loan from Deepwater Bank.Flip believes that the audit is true and does not intend to deceive the bank,but does not check the audit before certifying it.
-Refer to Fact Pattern 14-A3.On learning the truth,Deepwater's chief loan officer confronts Flip,who says,"I didn't know." This is

• A)a mistake of value.
• B)innocent misrepresentation.
• C)negligent misrepresentation.
• D)unconscionable.

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Definitions:

Mononitration

The chemical process of introducing one nitro group (-NO2) to a molecule, commonly used in the synthesis of explosives and various organic compounds.

Major Organic Product

The main product produced in the greatest amount when organic compounds undergo a chemical reaction.

Major Organic Product

The primary product formed in greater yield during an organic chemical reaction.

Mononitration Product

A compound resulting from the nitration reaction where only one nitro group is added to a molecule.