Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Three Benny wants to buy some shares now that he is working and earning money. Benny decides to catch up for lunch with Mandy,

Question Three Benny wants to buy some shares now that he is working and earning money. Benny decides to catch up for lunch with Mandy, a friend from University. Mandy and Benny both did a business degree and graduated in December 2020, but Mandy majored in accounting and finance, so Benny considers her an expert on such matters. Over lunch, Mandy advises Benny to purchase shares in Red Sky Mining Ltd. Benny trusts Mandy and purchases $20000 worth of shares. Benny does not know that Red Sky Mining Ltd is currently in voluntary administration and that Mandys parents and herself are the three directors of Red Sky Mining Ltd. a) Does Mandy owe Benny a common law duty of care? Can Benny get his money back for the advice Mandy gave him? (4 marks) b) Would your answer in a) be different if Mandy and Benny shared two bottles of wine over lunch? (2 mark)

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

Contemporary Financial Management

Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan

8th Edition

0324065914, 9780324065916

More Books

Students also viewed these Finance questions