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Herman hires Juanita as his accountant. Juanita commits negligence in preparing
financial statements for a business Herman owns. Several investors rely on the financial
statements and purchase shares of stock in the business. In a state that has adopted the
privity rule, what result?
Recording statutes provide that a person purchasing land from the last holder of record
will take title free of any unrecorded claim to the land of which the purchaser does not
have notice or knowledge.
A corporation is a separate legal entity capable of owning property, contracting, and
being sued in its own name.
A trustee is not permitted to profit personally from the position of trustee, other than to
receive the compensation allowed by contract or law.
The notice of a special meeting of shareholders must include a statement of the nature
of the business to be transacted and no other business may be transacted at such a
meeting.
Time honored rules of the community are called the common law.
