Cross Cutting Rule – Foreseeable Harm

The second cross-cutting rule is that a firm must avoid causing foreseeable harm to retail customers. Foreseeable harm is a key concept in the law of negligence, such as misstatements and misinformation.

The actions and omissions of a firm can cause foreseeable harm to customers regardless of whether the firm is in a direct relationship with the customers or elsewhere in the distribution chain.

Whether harm is considered foreseeable will depend on whether a prudent firm acting reasonably would be able to predict or expect the ultimately harmful result of their action . . .

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