Under the Ultramares rule,to which of the following parties will an accountant be liable for ordinary negligence? $$\begin{array} {c}
& \text { Parties in privity} & \text { Foreseen parties} \
\text { A) } & \text { Yes } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { No } & \text { Yes } \
\text { D) } & \text { No } & \text { No }
\end{array}$$

Question

Under the Ultramares rule,to which of the following parties will an accountant be liable for ordinary negligence? $$\begin{array} {c} 
& \text { Parties in privity} & \text { Foreseen parties} \
\text { A) } & \text { Yes } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { No } & \text { Yes } \
\text { D) } & \text { No } & \text { No }
\end{array}$$

Quizplus · Accepted Answer

Under the Ultramares rule, an accountant is only liable to parties in privity, meaning those with whom the accountant has a contractual relationship. Foreseen parties, or those who may have relied on the accountant's work but with whom the accountant does not have a direct contractual relationship, cannot hold the accountant liable for ordinary negligence. Option B correctly states that an accountant is liable to parties in privity but not to foreseen parties.

Under the Ultramares Rule,to Which of the Following Parties Will