Tony is a sophisticated business person.Tony's stock broker advises him to buy 1000 shares of Q-Tel at the current market price of $10 per share.The broker's advice is based on a careful assessment of the market and Tony's advice to the broker about his risk tolerance.Tony takes the advice and directs his broker to buy the shares.The shares turn out to be a very bad investment and, after six months, are worthless.Tony has no claim against his broker.

Question

Quizplus · Accepted Answer

Tony has no claim against his broker because the broker's advice was based on a careful assessment and Tony's own risk tolerance. Investments inherently carry risk, and the broker is not liable for market performance unless there was negligence or misconduct.

Tony Is a Sophisticated Business Person