Jack works as a financial planning consultant for Adco Ltd., a company that provides financial advice to its clients. At a three-martini lunch with Benson, one of Adco's clients, and Carson, a friend of Benson, Jack mistakenly advised Benson to buy shares of Moose Jaw Mining because he thought that Adco had investigated the prospects of the company. In fact, Adco had investigated Goose Jaw Mining and was recommending it to its clients. As it turned out, Benson ignored Jack's advice but Carson bought a lot of Moose Jaw shares and lost all of his money when the mining operation went broke. Which one of the following statements accurately describes Carson's legal situation?
◦ Jack cannot be held responsible for Carson's loss because someone who is incapacitated at all by alcohol cannot be held liable in tort for actions while incapacitated.
◦ Jack can be held liable only if Carson can establish that Jack owed him a duty to be careful.
◦ Carson will have to sue Benson and then Benson can turn around and sue Jack under the principles of vicarious liability.
◦ Because there was no contractual connection between Carson and anyone else, he has no legal right to compensation.
◦ Jack cannot be held liable for Carson's loss, but Adco can be because it employed Jack.
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