The concentration level of carbon dioxide has significantly increased with the rise in temperature. Scientists believe that both of the trends are somewhere interrelated because the release of carbon dioxide results into a greenhouse effect that traps solar heat. The EPA under CAA has the authority to regulate air pollutants that are the cause of air pollution. The EPA was requested to regulate the various greenhouse gases emitted from the motor vehicles by a group of private organizations. The request was denied by the EPA stating that the Congress amended the CAA without the authorization to new and binding limits of emission. To explain: The authority of EPA to regulate the greenhouse gas emission which is caused by new motor vehicles.

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ETHICS Pete, an accountant, recommended that several of his clients invest in Competition Aircraft. These clients passed this recommendation on to Arlene, who did invest. Unfortunately, Competition was a fraudulent company that pretended to sell airplanes. After the company went bankrupt, she sought to recover from Pete. Is Pete liable to Arlene? Whether or not Pete faces legal liability, is it a good idea for accountants to recommend investments to clients? Does that practice create any potential conflicts of interest?

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Question

Chapter 23, Problem 4BCP

Summary Introduction

Case summary: The concentration level of carbon dioxide has significantly increased with the rise in temperature. Scientists believe that both of the trends are somewhere interrelated because the release of carbon dioxide results into a greenhouse effect that traps solar heat. The EPA under CAA has the authority to regulate air pollutants that are the cause of air pollution. The EPA was requested to regulate the various greenhouse gases emitted from the motor vehicles by a group of private organizations. The request was denied by the EPA stating that the Congress amended the CAA without the authorization to new and binding limits of emission.

To explain: The authority of EPA to regulate the greenhouse gas emission which is caused by new motor vehicles.

Summary Introduction

Case summary: The concentration level of carbon dioxide has significantly increased with the rise in temperature. Scientists believe that both of the trends are somewhere interrelated because the release of carbon dioxide results into a greenhouse effect that traps solar heat. The EPA under CAA has the authority to regulate air pollutants that are the cause of air pollution. The EPA was requested to regulate the various greenhouse gases emitted from the motor vehicles by a group of private organizations. The request was denied by the EPA stating that the Congress amended the CAA without the authorization to new and binding limits of emission.

To explain: Whether the reason to refuse is consistent with the authority.

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