Accounting/Business Law

Ch. 46 (1)

Diversified Graphics, Ltd., hired Ernst & Whinney to assist it in obtaining a computer system to fit its data processing needs. DG had a long-standing relationship with E&W and developed great trust and reliance on E&Ws services. Because DG lacked computer expertise, it decided to entrust E&W with the selection and implementation of an in-house computer data processing system. E&W promised to locate a turnkey system, which would be fully operational without the need for extensive employee training. Instead, DG received a system that was difficult to operate and failed to meet its needs. Is E&W liable to DG?