Which of the following statements is true about the Ultramares Doctrine?

Question

Quizplus · Accepted Answer

The Ultramares Doctrine was a legal precedent set by the court case Ultramares Corporation v. Touche, in which the court held that accountants could only be held liable to those in a privity-of-contract relationship with the accountant. This means that the accountant can only be sued by their client or someone with whom they have a contractual relationship. The doctrine does not protect accountants against lawsuits, nor does it hold them liable to a limited class of intended users. While the doctrine has been influential in many states, it is not followed by all states in the United States.

Which of the Following Statements Is True About the Ultramares