Identify the areas of most significant legal liability for T3 (private law liability only).

Select one or more:

a. Property law

b. Contractual liability

c. Criminal or regulatory offense

d. None of the above

e. Tort liability

Choose the areas of private law that are likely to apply in this case.

Select one or more:

a. breach of contract

b. Intellectual Property

c. tort of nuisance

d. the tort of trespass

e. tort of defamation

f. real property - caveat emptor

g. the tort of passing off

h. tort of negligence / negligent misrepresentation

What are the potential consequences of private law?

Select one or more:

a. Fines

b. Imprisonment

c. Termination of contract

d. Specific Performance

e. Payment of Damages

T3 is only vicariously liable if the accountant is an employee; the accountant isn't an employee if he didn't have a written employment contract with T3.

Select one:

True

False

The software that authenticates source documents is protected:

Select one:

a. By trademark

b. By an industrial design

c. By copyright

d. As confidential business information

e. By a patent

The accountant is vicariously liable for the actions of T3.

Select one:

True

False

T3 prepares audited financial statements for its clients. The investors of its client companies may be able to sue T3 for negligent misrepresentation.

Select one:

a. True - as the financial statements were prepared by a professional accounting firm

b. True - as the audited financial statements are meant to be reliable to third parties and the investors relied upon them

c. False - T3's actions have no bearing on investment decisions

d. False - audited financial statements are only for the directors of a company and investors shouldn't rely on them

Transcribed Image Text:

Toad, Toad, and Turtle LLP (T3) is an accounting firm with 25 accountants and over 50 staff. The professional employees (accountants) are all hired in accordance with their professional designations. T3 handles the taxes and books for several mid to large businesses; they have a written contract with each of their clients. They are very conscious of the professional obligations of the firm, especially with respect to the accuracy of their work. T3 has developed software for authenticating source documents for clients' corporate expenses. Unfortunately, one of the accountants has found a way to mis-use the software to produce false documentation; the accountant has created $500,000 of false receipts which he has used to defraud Canada Revenue Agency. Toad, Toad, and Turtle LLP (T3) is an accounting firm with 25 accountants and over 50 staff. The professional employees (accountants) are all hired in accordance with their professional designations. T3 handles the taxes and books for several mid to large businesses; they have a written contract with each of their clients. They are very conscious of the professional obligations of the firm, especially with respect to the accuracy of their work. T3 has developed software for authenticating source documents for clients' corporate expenses. Unfortunately, one of the accountants has found a way to mis-use the software to produce false documentation; the accountant has created $500,000 of false receipts which he has used to defraud Canada Revenue Agency.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Correct Answer c Criminal or regulatory offense Explanation T3 faces significant legal li... View the full answer