Shelley is a Sydney accountant. She wins $100000 in a lottery. She decides to invest the $100000 in shares in Goldman Bros Bank, a company listed on the Australian Stock Exchange.

Just before she buys the shares, Shelley sees the following advertisement in her morning newspaper:

PHONE-ADVISOR

The Telephone investment Advisors

24 Hours a day - 7 days a week

Qualified Stockbrokers providing market advice

By phone

THIS WEEK ONLY - FREE CONSULTATIONS*

*First five minutes free: then $20 a minute

Tel: (02) 9234 6798

To set her mind at rest, Shelly calls Phone-Advisor and speaks to an unidentified man describing himself as an experienced stockbroker. Shelley asks for his advice on whether she should buy the shares in Goldman Bros. The stockbroker replies that it is a good investment. Most stockbrokers have the same opinion, but only because they are relying on the report made about Goldman Bros by a company named SmartTalk. It is well known that SmartTalk's reports are often wrong.

Shelley goes ahead and buys the shares in Goldman Bros. One week later it is discovered that Goldman Bros has huge debts that it cannot repay. Shelly's shares are now worthless.

Shelley wishes to sue Phone-Advisor for her loss. Advise her regarding the possibility of an action in the tort of negligence. Describe what further information you might need in giving your advice.