SQE1 Practice Questions - Solicitors Qualifying Examination Part 1 (Functioning Legal Knowledge) Exam

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A claimant company seeks to establish that a firm of accountants owed it a duty of care for a negligent audit on which it relied to make an investment. Which three-stage test from the House of Lords governs whether a duty of care arises in a novel situation?

The 'but for' test from Barnett v Chelsea & Kensington Hospital The Wednesbury unreasonableness test The eggshell skull rule from Smith v Leech Brain & Co The test of foreseeability, proximity and that it is fair, just and reasonable, from Caparo Industries plc v Dickman

Correct Answer:

The test of foreseeability, proximity and that it is fair, just and reasonable, from Caparo Industries plc v Dickman

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