Filtration Products,Inc. ,files a suit against Emmett,its former account?ant,al?leging constructive fraud.Emmett may be held liable

Question

Quizplus · Accepted Answer

Constructive fraud is a type of fraud that does not require proof of fraudulent intent. It refers to situations where a person has a duty to act with care and fails to do so, resulting in harm to another party. In this case, Emmett, as Filtration's accountant, had a duty to perform his duties with care and diligence. If he was grossly negligent in the performance of his duties, then he may be held liable for constructive fraud, even if Filtration cannot prove actual fraud or fraudulent intent. Therefore, option B is the best answer.