Read the question twice. During the second time identify the material/relevant facts as you read. 6 Business Law - Unit 4: Tort of Negligence Negligent Misstatement Question 5 Mr Lee is 54 years old and has, for many years, worked in the construction industry. Mr Lee recently inherited a sum of $100,000 from his deceased father and he has no other significant assets. Mr Lee is planning his retirement and he has decided to invest in some shares using the inheritance money. Mr Lee has no prior experience in shares investment and financial planning. Mr Lee approached Mrs Smith who works for Smart Investments Pty Ltd, a well-known investment advisory company. Mr Lee makes an appointment with Mrs Smith and during the meeting in her office, Mr Lee asks Mrs Smith whether she thinks Essette Airlines is a good investment. Mr Lee made it very clear to Mrs Smith that he will only be able to retire if the investment is successful. Due to having many other clients demanding her time, Mrs Smith advised Mr Lee in writing that Essette Airlines had good financial performance based on a newspaper paper article she had read and without doing further research. Mrs Smith provided this advice with a disclaimer. A simple further research by Mrs Smith would have indicated that Essette Airlines was not a good investment. Mr Lee was nervous and told Mrs Smith that he was reluctant to invest the whole of $100,000 in one company. Mrs Smith assures Mr Lee that it is a good investment. Acting on this advice, Mr Lee invested his inheritance in Essette Airlines. Soon after Mr Lee invested, the share price of Essette Airlines fell significantly. As a result, Mr Lee lost half of his inheritance money. Discuss Mr Lee's case in terms of all the elements he needs to establish to be successful in a negligence action against Smart Investments. Advise Mr Lee of any possible defences that Smart Investments may use. In your answer, you must consider and apply any relevant statutory provisions and decisions from any relevant cases you have studied. Read the question twice. During the second time identify the material/relevant facts as you read. Using IPAC, answer the question above. (Issue/Principle/Application/Conclusion)