________ is a rule that says that an accountant is liable only for negligence to third parties who are in privity of contract or in a privity-like relationship with the accountant.
A)The foreseeability standard
B)The Ultramares doctrine
C)The due diligence defense
D)Section 552 of the Restatement (Second)of Torts

Question

Quizplus · Accepted Answer

This is known as the Ultramares doctrine, named after the landmark case Ultramares Corporation v. Touche, which set the precedent that accountants are only liable for negligence to third parties with whom they have a privity-like relationship or contract. This rule was later modified by Section 552 of the Restatement (Second) of Torts, which extended liability to a broader range of foreseeable third parties who rely on an accountant's work. The due diligence defense refers to the defense that an accountant can use to show that they acted with reasonable care and skill. The foreseeability standard is a general legal principle that applies to many different areas of law, and is not specific to accounting or negligence liability.

________ Is a Rule That Says That an Accountant Is