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Item (d) relates to what a plaintiff who purchased securities must prove in a civil liability...

Item (d) relates to what a plaintiff who purchased securities must prove in a civil liability suit against a CPA. d. The plaintiff security purchaser must prove privity with the CPA.

Multiple Choice

A)Only applies to Section 10(b) of the Securities Exchange Act.

B)Only applies to Section 11 of the 1933 Securities Act.

C)Applies to neither of the acts.

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Answer #1

Answer:

C) Applies to neither of the acts.

Explanation:

Privity is when the CPAs and respective clients form a contract where there is agreement to do any services. Here, when plaintiff who purchased securities, is in a civil liability suit against a CPA. According to Section 10(b) of the Securities Exchange Act, there is no need to prove privity with the CPA. Also, under Section 11 of the 1933 Securities Act, there is no need to prove privity with the CPA Hence, plaintiff security purchaser must not need to prove privity with the CPA under either Section 11 of the 1933 Securities Act or Section 10(b) of the Securities Exchange Act. Thus option (A) and (B) are incorrect. So option (C) is correct

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