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1. A manufacturer claims as a business expense payments made to a parts supplier. The manufacturer claims to have paid the supplier an extra $10,000
1. A manufacturer claims as a business expense payments made to a parts supplier. The manufacturer claims to have paid the supplier an extra $10,000 beyond what it paid. The supplier does not know this, and when it files its federal tax return, the IRS assesses a penalty against the supplier for failing to note the additional $10,000. Will the manufacturer be liable to the supplier? Under what theory of tort law? Why?
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