SOLVED

[Carter’s financials] Kayla works as an accountant. Rudy, an attorney, is working on a case for Carter, who is suing his business partner. Rudy does not have the time or the background to perform a complete analysis of Carter’s financial statements, so Rudy asks Kayla to meet with Carter and assist Rudy with interpreting Carter’s financial statements. Kayla meets with Carter, who provides a lengthy explanation of the financial statements and facts of the case. Afterwards, she prepares a memorandum for Rudy outlining her analysis of the financial issues of the case. Kayla runs into Carter at a baseball game several months later. Carter tells her that the stress is getting to him and he wants to move to Florida because he can no longer tolerate his business partner. A year later, at trial, Kayla is called as a witness by Carter’s business partner to testify against Carter. No accountant-client privilege exists in Kayla’s state, which is also where the trial takes place. 76) If Kayla is called to testify at trial, would she likely be required to reveal information about Carter’s financial statements? A) No, because federal law recognizes the accountant-client privilege. B) No, because of the attorney-client privilege. C) Yes, because no accountant-client privilege exists and the attorney-client privilege does not apply because Kayla is not an attorney. D) Yes, because no accountant-client privilege exists. E) Yes, because the communication was not made in confidence for the purpose of obtaining legal advice from the attorney. 77) Which of the following, if true, would likely persuade a judge to require Kayla to testify about Carter’s financial statements? A) Kayla met with Carter at Rudy’s direction. B) Kayla’s meeting with Carter occurred before Rudy was involved in Carter’s case. C) Carter provided Kayla with a factual background of the case. D) Kayla provided accounting services to Carter. E) Kayla provided legal advice to Carter. 78) If Kayla is called to testify at trial, would she likely be required to reveal information about Carter’s remarks at the baseball game? A) Yes, because no accountant-client privilege exists and the attorney-client privilege does not apply because Kayla is not an attorney. B) Yes, because no accountant-client privilege exists. C) No, because federal law recognizes the accountant-client privilege. D) Yes, because the communication was not made in confidence for the purpose of obtaining legal advice from the attorney. E) No, because of the attorney-client privilege. 79) Which of the following is true about professional indemnity insurance? A) It provides coverage in the event that a professional is sued for failing to live up to his or her professional responsibilities. B) It does not cover malpractice claims. C) Professionals who might be subject to malpractice claims usually do not purchase professional indemnity insurance. D) It provides coverage in the event that a professional is sued for malpractice, but not for failing to live up to his or her professional responsibilities. E) Doctors, lawyers, and accountants may purchase this type of insurance, but not other professionals. 80) Under most professional indemnity insurance policies, which of the following must be true in order for a claim to be covered? A) A policyholder must be insured at the time the claim arose or at the time the claim is filed. B) A policyholder must be insured at the time the claim arose, but does not need to be insured at the time the claim is filed. C) A policyholder must be insured at the time the claim is filed, but does not need to be insured at the time the claim arose. D) A policyholder need only show evidence of current payment of policy premiums. E) A policyholder must be insured at the time the claim arose and at the time the claim is filed. Â Â