Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer this law for commerce question with reference Tom is the CEO of Raise Ltd, a financial services provider with an arm of its

Please answer this law for commerce question with reference

image text in transcribed
Tom is the CEO of Raise Ltd, a financial services provider with an arm of its business specialising in loan products for small and medium sized (SME) businesses in Victoria. Tom is friends with Victor, a director of BigFour Co Ltd, an Australia wide auditing firm with its head office in the Melbourne CBD. Victor tells Tom about Smithlays Group, an up and coming group of businesses in the hospitality industry. Based on the advice from Victor, and an audit report produced by BigFour Co Page 3 of 5 Ltd, Raise decides to provide loans to companies both within the Smithlays Group and some other companies associated with Smithlays, accepting guarantees of repayment by Smithlays for these loans. Several months later, Smithlays goes bankrupt and Raise lose a significant amount of money. BigFour Lid argue that the audit report was only for Smithlays and that Raise should have done its own research about the financial health of the Group before providing the loans. Advise Tom. Discuss whether Victor and/or BigFour owe a duty of care to Raise. Please use case law and/or statute to support your

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

Step: 3

blur-text-image

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

Problems And Materials On Commercial Law

Authors: Douglas J. Whaley, Stephen M. McJohn

12th Edition

1543825907, 978-1543825909

More Books

Students also viewed these Law questions

Question

What is the biggest strength of the program?

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago