In Reference to the Case of Credit Alliance Corp

question 61

Multiple Choice

In reference to the case of Credit Alliance Corp.v.Arthur Anderson & Co.,what did the court rule regarding the effort to hold the defendant accounting firm liable on a third-party reliance theory?

• A) The plaintiff was allowed to recover because the Ultramares Rule was applied.
• B) The plaintiff was not allowed to recover because the Carroll Rule was applied.
• C) The plaintiff was allowed to recover because it was a foreseen user.
• D) The plaintiff was allowed to recover because it was in a foreseen class of users.
• E) The plaintiff was not allowed to recover because the court did not find the necessary link between the plaintiff and the accounting firm.

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Definitions:

Marriages

The legally or formally recognized union of two people as partners in a personal relationship.

Primacy Effect

The tendency to remember and give more importance to information that is encountered first in a sequence.

Adult Attachment

Patterns of expectations, needs, and behaviors in interpersonal relationships that result from the internalization of early attachment experiences.

Separation Distress

A psychological phenomenon characterized by emotional distress and anxiety experienced when separated from a significant person or environment.