An accountant can defeat the imposition of liability under Section 18(a)if the accountant ________.
A) can show that the misleading statement was made to protect the company from bankruptcy
B) can show that he acted negligently
C) was an employee of the plaintiff
D) can show that the plaintiff had knowledge of the False statement

Question

Quizplus · Accepted Answer

An accountant can defeat the imposition of liability under Section 18(a) if they can show that the plaintiff had knowledge of the false statement, meaning that they knew it was false or misleading but still went through with the transaction. Therefore, option D is the best choice. Option A is incorrect as the motive behind the misleading statement does not excuse liability under Section 18(a). Option B is incorrect as acting negligently is not a defense to liability under Section 18(a). Option C is incorrect as being an employee of the plaintiff does not automatically negate liability under Section 18(a).

An Accountant Can Defeat the Imposition of Liability Under Section