Rice Corporation's attorney has provided the following summaries of three lawsuits against Rice: • Lawsuit A: The loss is probable,but the loss cannot be reasonably estimated.
• Lawsuit B: The loss is reasonably possible,but the loss cannot be reasonably estimated.
• Lawsuit C: The loss is reasonably possible and can be reasonably estimated.
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Which of the following statements is correct?
A)A disclosure note is required for each of the three lawsuits.
B)A disclosure note is required only for lawsuits A & C.
C)A disclosure note is required only for lawsuit A.
D)A disclosure note is required only for lawsuits B & C.

Question

Quizplus · Accepted Answer

A disclosure note is required for each of the three lawsuits because for lawsuit A, the loss is probable but cannot be estimated, necessitating disclosure. For lawsuit B, the loss is reasonably possible, which also requires disclosure even without an estimate. For lawsuit C, the loss is both reasonably possible and can be estimated, clearly requiring disclosure.

Rice Corporation's Attorney Has Provided the Following Summaries of Three