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Special relationship question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Special relationship question

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • November 19, 2017 at 4:25 pm #416680
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Which of the following is not situation where court have established that duty of care exist?

    a) Motorist owes duty of care to pedestrains

    b) Manufacturer of product owes duty of care to ultimate users of those products

    c) Auditor of the company’s accounts owes duty of care to anyone who might read his report based on those accounts

    Correct answer is C. But please explain me all of the 3 options

    November 19, 2017 at 5:08 pm #416690
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    A general duty of care for a motorist to have in mind their legal neighbours … those people that are so directly affected by their acts that they should have them in mind as likely to be affected when they commit those acts

    Manufacturer? Donohue v Stevenson

    Auditor – owes a duty in contract to the client company but not to anyone else – the purpose of an audit report / audit opinion is NOT for people to make investment decisions based on that report / opinion

    OK?

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    Posts
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  • The topic ‘Special relationship question’ is closed to new replies.

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