Everett is an accountant whose clients include Finance & Capital, Inc. Under the Ultramares rule, if Everett is negligent in his work for Finance & Capital, he could be liable to Finance & Capital and
A) any third party.
B) no third party with whom the accountant is not in privity or "near privity."
C) third parties who are foreseen users of the work.
D) third parties who are reasonably foreseeable users of the work.

Question

Everett is an accountant whose clients include Finance & Capital, Inc. Under the Ultramares rule, if Everett is negligent in his work for Finance & Capital, he could be liable to Finance & Capital and​
A) ​any third party.
B) ​no third party with whom the accountant is not in privity or "near privity."
C) ​third parties who are foreseen users of the work.
D) ​third parties who are reasonably foreseeable users of the work.

Quizplus · Accepted Answer

The Ultramares rule limits an accountant's liability to only those with whom the accountant has privity or near privity, meaning a direct contractual relationship or a relationship that is similar to a contractual relationship. Therefore, the accountant would not be liable to any third party with whom the accountant does not have privity or near privity.

Everett Is an Accountant Whose Clients Include Finance & Capital