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Question: Sam was attending a Christmas party, when she happened upon an employee (Ashley) of the CIH insurance Company. Sam asked Ashley his opinion about investing in CIS Company which is a co-subsidiary of the CIH insurance Company. Ashley stated that he thought this should be a sound investment. Based on Ashley's advice Sam invested in CIS Company, but it turned out that CIS Company was not a sound investment, so Sam lost all of her money.
Required:
Comment on whether Ashley and the CIH insurance Company owed Sam a duty of care to take reasonable care when advising the soundness of investing with CIS Company.
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