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Explain Liability for Negligence
Grumped Company asks Pierce Whippersnapper LLP (PW), a CPA firm, to audit its financial statements. Grumped tells PW that it plans to use the statements to obtain a loan from First Bank. PW prepares the statements. Grumped uses the statements to obtain a loan from Second Bank. The statements falsely state Grumped's financial position due to PW's negligent preparation of them. When Grumped defaults on the loan, Second Bank sues PW under the common law rule of negligence. Does PW have liability for negligence to Second Bank under the Ultramares decision? Does PW have liability for negligence to Second Bank under the Restatement (Second) of Torts? How does UCC Article 3 play into this situation?
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This assignment is about the concept of Business Ethics & Legal Issues. The laws relating to these can be found in Antitrust laws. These laws are concerned with those large corporations which have a majority of market share, mergers and acquisitions.
Prepare the lease agreement
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