[CPA2BEE]

I’m a bit confused about whether or not RELIANCE is necessary to be proven when it comes to Negligence. See the following two questions:

1) A client suing a CPA for negligence must prove each of the following factors except:

A.

breach of duty of care.

B.

proximate cause.

C.

reliance.

D.

injury.

The answer is C. The client does not have to prove reliance on the CPA’s advice

2) Which of the following facts must be proven for a plaintiff to prevail in a common-law negligent misrepre­sentation action?

A.

The defendant made the misrepresentations with a reckless disregard for the truth.

B.

The plaintiff justifiably relied on the misrepresentations.

C.

The misrepresentations were in writing.

D.

The misrepresentations concerned opinion.

The answer is B. The plaintiff RELIED on the misrepresentations.

I guess my questions is there a difference between “suing a CPA for negligence” and “common law negligent misrepresentation action”? There must be. Perhaps the second question implies Gross Negligence, in which case you do need to prove reliance? If anyone can clear this up for me, I would greatly appreciate it.

FAR - 80
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REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Spartans92]

I am not on BLAW yet, however, based on what I learned in my business law courses the first one seems to be contract law (perhaps governed by the UCC?) so it is different than common law. The key difference between the 1st and 2nd Question is the 2nd one is misrepresentation. If you have misrepresented the information and the client relied on that information to make their decision this constitutes negligence. That is why products all have a disclaimer etc on the box. Sorry if this wasn't too helpful.

BEC- PASS

[CPA2BEE]

@Spartans thanks for the reply. So contract law negligence does not require reliance, but common law negligence does?

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Author]

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