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Richards has filed quarterly reports to the SEC based on information supplied by management. A
potential concern of such reliance is which of the following
Privity only
Liability to 3rd parties.
Liability to foreseen 3rd parties only.
Liability to reasonably foreseen 3rd parties only.
Solution
Answer: Liability to foreseen 3rd parties only.
This is according to the "middle ground" approach followed by most states.

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