If an accounting firm is sued for negligently preparing a faulty financial report for a company, it is likely that the accounting firm is:
a. not liable; a reasonable number of mistakes are expected to occur
b. liable if the mistake is one that an ordinary person (any person off the street) would have not made c. held subject to a special statutory standard of care
d. held to have violated the principles of strict liability e. none of the other choices
Question 2
In Neilsen v. Gold's Gym, where Gold's leased space for a new gym, but got into a dispute with the landlord of a the commercial space before it even moved in, the unclear terms of the lease led to the courts:
a. holding the lease to be unenforceable
b. holding the lease to be legal and binding
c. requiring Neilson to pay damages for breach of contract
d. requiring Gold's Gym to pay damages for breach of contract e. none of the other choices are correct
An example of a typical incident report.
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