Xander believes that the CEO of his company,Trish,has been negligent,breaching her duty of care to the shareholders.As the company's accountant,he has noticed that Trish gives him records that seem incomplete.After confronting her,Xander finds out that she didn't know about any incomplete records,but that it might be because she just throws out transactions that are less than $200 because she thinks it doesn't really affect anything.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The court will look at reasonable foreseeability, proximity, and policy to determine if there is a duty of care. In this scenario, Xander believes that Trish has been negligent and breached her duty of care to the shareholders by giving him incomplete records. Therefore, the court may look at these factors to determine if a duty of care exists. Choice A is not true as the court can determine duty of care in situations that do not fall into traditional categories. Choice C is not applicable as there is no evidence of deceit in the scenario. Choice D is incorrect as Donoghue v Stevenson established the general concept of negligence and is not limited to manufacturers and their customers. Choice E is incorrect as the amount of the transaction should not determine whether it is important enough to be recorded for financial reporting purposes.

Xander Believes That the CEO of His Company,Trish,has Been Negligent,breaching