Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A land appraiser prepared an appraisal of a property for a real estate development company. The appraiser had been told that the appraisal would be

image text in transcribed
A land appraiser prepared an appraisal of a property for a real estate development company. The appraiser had been told that the appraisal would be used by the company to attract potential Investors. Because the appraiser forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate and the investor, a party unknown to the appraiser, was misled about the value of the land and consequently, suffered a financial loss. On these facts, which of the following is true? Select one: O a. A person cannot be sued for words that cause loss, only for actions that cause physical injury O b. The cause of action that could be taken by the investor is "negligent misstatement causing economic loss." OC. A land appraiser owes a duty of care to his client, the company, but not to any potential investors .d. The investor must suffer his own loss, because an investor takes the risk and so must take care Clear my choice

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Auditing and Other Assurance Services

Authors: Ray Whittington, Kurt Pany

20th edition

77729145, 978-1259295430, 1259295435, 978-0077729141

More Books

Students also viewed these Accounting questions

Question

What medications are used to treat paraphilic disorders?

Answered: 1 week ago

Question

What are the purposes of promotion ?

Answered: 1 week ago