Crucial Exams

Multistate Bar Examination Practice Question

A financial advisor negligently provides incorrect investment advice to a client. The client, relying on the advice, incurs significant financial losses when their investments decrease in value. Additionally, the client’s business partner, who had no direct interaction with the financial advisor, also suffers financial losses because the client’s reduced funds lead to the cancellation of a joint project. Can the business partner recover damages from the financial advisor?

  • Yes, the business partner can recover damages because they were indirectly harmed by the financial advisor’s actions.

  • No, the business partner cannot recover damages because the advisor’s advice did not directly cause their financial loss.

  • Yes, the business partner can recover damages because the losses were caused by the financial advisor’s negligence.

  • No, the business partner cannot recover damages because the financial advisor had no duty of care to them.

Multistate Bar Examination
Torts
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