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All posts in General Questions

What defense must an accountant establish to be absolved from civil liability under Section 18 of the Securities Exchange Act of 1934 for false or misleading statements made in reports or documents filed under the act?

a) lack of gross negligence
b) exercise of due care
c) good faith and lack of knowledge of the statement’s falsity
d) lack of privity with an injured party

On the one hand, the OSH Act requires that employers provide a safe workplace, free of hazards. On the other hand, there are very real legal and ethical concerns in requiring AIDS tests of employees or potential employees. Discuss this “quagmire” of addressing that OSH Act requirement and employees’ rights of workplace safety, versus one’s right to privacy and due process. What would you, as an employer, recommend? How do other organizations address this?

Eagle Sales Company owns a warehouse, subject to a mortgage obtained from First National Bank. Separately, Eagle and First National obtain insurance policies from Good Hands Insurance, Inc., to cover the warehouse. Later, Eagle sells the property to Interstate Distribution Corporation but keeps the insurance policy. First National agrees to act as Interstate’s mortgagee, and Interstate obtains an insurance policy from Good Hands to cover the property. A fire totally destroys the warehouse.

Who can recover an amount for its loss?