Social, Policy, and Ethical Considerations 1. Should James make a point of acquainting himself wit the details of the litigation? Were his preliminary stat ments about the lawsuits justifiable? 2. Is it ethical for Banks & Borre to recruit new partne and to institute a policy that encourages mergers, give the pending litigation? 3. If a merger takes place, could Ken, Richard, and Donald held liable for any judgments arising from the litigation? 4. How might a CPA firm insulate its partners from pe sonal liability? 5. What actions should Jones, Jones, and Frank take investigate Banks & Borre before proceeding with th merger