Crucial Exams

Multistate Bar Examination Practice Question

Alex hires a consulting firm to provide strategic advice for expanding his retail business. The firm negligently provides flawed market analysis, leading Alex to make poor investment decisions that result in substantial financial losses. There is no physical damage to Alex’s property or person. Which of the following is the BEST basis for Alex to recover pure economic loss from the consulting firm?

  • The existence of a professional relationship that creates a duty of care for the consulting firm's advice.

  • A contractual agreement between Alex and the consulting firm specifying liability for certain losses.

  • Demonstrating that the economic loss was foreseeable by the consulting firm at the time of the agreement.

  • Evidence that the consulting firm's negligence caused physical damage to Alex’s business property.

Multistate Bar Examination
Torts
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