a	A partner in a CPA firm has a falling out with the firm and the other partners force him out of the firm. Upon his leaving, the ex-partner takes a stack of the firms letterhead. The expartner does not tell his clients that he is no longer with the firm and the firm does not contact the ex-partners clients to inform them that he is no longer with the firm. The expartner forms his own practice but he still continues to use the old firms letterhead. A claim is subsequently made against the ex-partner and his old firm, based upon work performed by the ex-partner after leaving the old firm. The plaintiff brought the old firm into the suit believing that the ex-partner was still representing the old firm because of the letterhead being used. Is the old CPA firm liable to the plaintiff? Provide the reasoning for your answer
b	Two CPAs, Hudson and Day, share office space owned by Hudson. Day pays rent and overhead to Hudson by giving Hudson a certain percentage of his revenues. Billings to Days clients are sent out on Hudsons letterhead. In addition, Dayuses Hudsons letterhead to send all correspondence to his (Days) clients. One of Days clients subsequently sues Day for alleged theft and professional negligence. In the suit, Hudson is also named as a defendant, with the claim made by the client that Hudson was negligent for not properly supervising the activities of Day, since Day held himself out as part of Hudsons firm and Hudson was paid for services rendered by Day. Is Hudson liable to the plaintiff? Provide the reasoning for your answer
c	The Medium CPA firm purchases Smaller CPA firm. Unknown to Medium CPA firm, one of the partners of Smaller CPA firm handles investments for clients as a side business. The partner recommends specific investments, handles the money, and receives a commission for this service. The investment clients are also accounting clients, and most meetings take place at Smallers office. One of the clients loses money on an investment and sues Medium CPA firm, not the partner that sold the client the investments. The plaintiff alleges that the firm gave the impression, through its marketing literature, that such investment services were within the scope of services provided by the firm and that they believed the investing activities being carried on by this partner were being supervised and approved by Medium. Is Medium liable to the plaintiff? Provide reasoning for your answer.

Discuss the legal liability of CPAs and their firms for the above unrelated situations.