II. Legal responsibility Partial (or Complete) Definition A federal securities statute covering registration statements for securities to be sold to the public Amathod of allocating damages to aach group that is liable according to that group's pro-cata share of any damage covered by the plaintiff. For example, if the plaintiff was awarded a total of $500,000 and the CPAs were found to bear 30 percent of the responsibility for the damages, the CPAs would be assessed $150,000 c. Damage to another is directly attributable to a wrongdoer's act. This issue may be raised as a defence in litigation--that is the defense may argue that some other factor caused the loss 4. Failure of one or both parties to a contract to perform in accordance with the contract's provisions Intent to deceive, manipulate, or defrand. This concept is used in the 1934 Securities Exchange Act to establish auditor liability Mepresentation by a person of a material fact, known by that person to be untrue or made with reckless indifference as to whether the fact is true, with intent to deceive and with the result that another party is injured. g. Performing duties with such recklessness that persons believing the duties to have been completed carefully are being misled The person performing the duties does not have knowledge of misrepresentations within the financial statements Umritten law that has developed through court decisions; it represents judicial interpretation of a society's concept of faimass Violation of a legal duty to exercise a degree of care that an ordinarily prudent person would exercise under similar circumstances Weinen law created by state or federal legislative bodies Term 1. Breach of contract 2. Common la 3. Constructive frand 4. Defendant 6. Joint and several liability 7. Negligence 8. Ponzi scheme 9. Proportionate liability 10. Proximate cause 11. Scienter 12. Securities Act of 1933 13. Securities Exchange Act of 1934 14 Story la