The Playboy Club asked its agent to request a reference from a bank about a customer's creditworthiness. When the customer defaulted, the club sued for negligent misstatement.
Why did the claim fail?

Question

The Playboy Club asked its agent to request a reference from a bank about a customer's creditworthiness. When the customer defaulted, the club sued for negligent misstatement.  
 Why did the claim fail?

Answer

Because the club had not relied on the information in making its decision.

Answer

Because the bank's statement was not made negligently.

Answer

Because banks cannot be sued for negligent misstatement in contract-based dealings.

Answer

Because the bank was entitled to rely on the agent's due diligence.

Answer

Because the bank owed no duty to someone it didn't know and was relying on its statement.

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The Playboy Club asked its agent to request a reference from a bank about a cust...

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