Rick prepared financial statements for MegaCorp knowing that it was going to use his statements to apply for a loan with Big Bank.When Big Bank turned MegaCorp down,it applied to Fourth Bank for a loan.MegaCorp presented the statements prepared by Rick to Fourth Bank which gave the company a loan.It was discovered that Rick was negligent in preparing the statements,and Fourth Bank sued Rick.Under which of the following tests is Rick liable?
A) Ultramares doctrine.
B) Foreseeable doctrine.
C) Restatement doctrine.
D) Rick would be liable under both the foreseeable doctrine and the Restatement doctrine.

Question

Quizplus · Accepted Answer

Rick would be liable under both the foreseeable doctrine and the Restatement doctrine because he knew that MegaCorp was going to use his statements to apply for a loan, and he was negligent in preparing the statements.

Rick Prepared Financial Statements for MegaCorp Knowing That It Was