The court's holding in Ultramares Corporation v.Touche:

Question

Quizplus · Accepted Answer

The court's holding in Ultramares Corporation v. Touche established that an accountant's liability for negligence is limited to cases in which there is privity of contract. This means that accountants are not liable for negligence to third parties who are not in privity of contract with them. The court did not completely relieve accountants from liability for reckless misstatement or fraud, but did limit their liability to only cases where there is privity of contract. The court did express concern about the exposure of accountants to liability in an indeterminate amount for an indeterminate time to an indeterminate class, but this did not change the court's ruling on privity of contract as the basis for accountant liability.

The Court's Holding in Ultramares Corporation V.Touche