The court decision in Rosenblum establishes a standard for legal liability to third parties when each of the following elements are proven: a. Ordinary negligence b. The statements were used for routine business purposes c. Reasonably foreseeable third parties d. Third parties relied on the statements e. Gross negligence can be proven f. Third parties were recipients of the financial statements

Ordinary negligence Reasonably forseeable third parties Third parties were recipients of the financial statements The statements were used for routine business purposes

Explanation:

The court decision in Rosenblum was made regarding the situation where it was necessary to know whether accountants should take full responsibility for their negligence in financial statement audits, or whether third parties should be held responsible as well. Based on this, the court ruling has established a standard of legal liability for third parties when each of the following elements is proven:

Ordinary negligence Reasonably forseeable third parties Third parties were recipients of the financial statements The statements were used for routine business purposes

a. Ordinary negligence

b. The statements were used for routine business purposes

c. Reasonably forseeable third parties

d. Third parties were recipients of the financial statements

Explanation:

Expansive liablity indicates that a third party is criminally liable for a crime that another person has committed if he/she conspires with the criminal on purpose. It became an important element of the law in 1983 with the case of Rosenblum, in which New Jersey's Court completely disregarded Ultramare and claimed that auditors could be legally responsible for logically predictable negligence.