Solved by verified expert :24) Define
ordinary negligence, gross negligence, and constructive fraud.
25) An important
concept in contract law for accountants to understand is the “third-party
beneficiary doctrine.” Explain and give an example.
26)
Distinguish between constructive fraud and fraud.
27)
Distinguish between “joint and several liability” and “separate
and proportionate liability.”
28)
Match seven of the legal terms (a-j) with the definitions provided below (1-7):
a. Common law
b. Constructive fraud
c. Breach of contract
d. Joint and several liability
e. Ordinary negligence
f. Third-party beneficiary
g. Gross negligence
h. Statutory law
i. Fraud
j. Separate and proportionate liability
________
1. Laws that have been passed by the U.S. Congress and other governmental
units.
________
2. Absence of reasonable care that can be expected of a person in a set of
circumstances.
________
3. Lack of even slight care, tantamount to reckless behavior that can be
expected of a person.
________
4. The assessment against a defendant of that portion of the damage caused by
the defendant’s negligence.
________
5. Failure of one or both parties in a contract to fulfill the requirements of
the contract.
________
6. The assessment against a defendant of the full loss suffered by a plaintiff
regardless of the extent to which other parties shared in the wrongdoing.
________ 7.
Existence of extreme or unusual negligence even though there was no intent to
deceive or do harm; also termed recklessness.
29) The standard
of due care to which the auditor is expected to be held is referred to as the
prudent person concept.
A)
True
B)
False
30) In a CPA
firm operating as a limited liability partnership (LLP), the liability for one
partner’s actions does not extend to another partner’s personal assets.
A)
True
B)
False
