Critical Legal Thinking. In cases involving third parties who have suffered losses in reliance on negligent misrepresentations in accountants’ fi nancial reports, the courts apply different standards to assess liability. Some courts impose liability only when there is privity between the accountant and the party seeking recovery. Other courts impose liability under a foreseeability rule. What are the implications of imposing liability on accountants for losses suffered by third parties on the basis of foreseeability rather than privity?