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11. Brown vs. Board of Education of Topeka a. Establishes that res judicata is not inviolate, b. Was the last case wherein the US Supreme Court approved of the government treating similarly situated differently based on race, religion, national origin, and creed. c. Proves that law evolves to reflect social conditions. d. A and C are correct. 12. The obligation people owe cach other not to cause any unreasonable harm or risk of harm is termed as a. b. c. d. Justice Res ipsa loquitur. Good Samaritan law. Duty of care. Questions 13-14 are based on the following fact pattern: MaryJane's Smoke Shoppe, Inc. has operated for the past six years without the benefit of an accountant or bookkeeper. With the legalization of marijuana, MaryJane's hires the CPA firm Eamest and Whiney to sort out its financial records and books. Six months ago Earnest and Whiney prepared audited financial statements of MaryJane's and rendered an unqualified opinion. Earnest and Whiney's opinion failed to reflect MaryJane's precarious financial position. MaryJane's gave Eamest and Whiney's audit opinion to Last National Bank. The Bank loaned MaryJane's $10 million based on Earnest and Whiney's opinion. The following year MaryJane's went into bankruptcy. There is no evidence that MaryJane's acted improperly before, during, or after the audit. 13. Suppose that Last National Bank sues Earnest and Whiney for negligence in California. What is the likely result? a. Last National Bank must prove that it was in privity or a privity-like relationship, with Earnest and Whiney to prevail. b. Last National Bank wins if it was reasonably foresecable to Earnest and Whiney that it would rely on the financial statements if prepared for MaryJane's. Last National Bank wins if it is amongst a limited class of intended uses for whose The benefit the financial statements were prepared. d. Last National Bank only needs to establish is that its damage was caused by Earnest and Whiney's failure to act as a reasonable CPA firm. c. a. 14. Suppose that MaryJanes's sues Earnest and Whiney's for damages. What is the likely result? Earnest and Whiney win if it proves that it performed the audit in "good faith." b. Earnest and Whiney wins because it did not intentionally fail to discover MaryJane's precarious financial condition. MaryJanes's wins if Earnest and Whiney failed to conduct its audit as a reasonable CPA firm would have acted. d. MaryJane's wins only if Earnest and Whiney acted recklessly. c