law435 law of torts i skill about investments

QUESTION: Don inherits RM200,000 from his late aunt and decides to invest some of the money. Since he has no knowledge or skill about investments, he decides to seek advice from Rodney Jones, an investment and financial adviser. Don strictly follows Rodneys written advice and invests half of his funds in Miracle Films Bhd. However, six months later, the company went broke. Don discovers that the poor financial health of Miracle Films Bhd. is well known. It has even been the subject of a television programme dealing with financial matters and an article has been written about the company in the financial sections of several major newspapers. As a result of the poor financial advice, Don loses RM100,000. Based on relevant authorities, advise Don. Would your advice be different if Rodneys written advice contains the following statement:All care has been taken on the suggested investments, but no responsibility will be accepted for the advice contained herein?Malaysia Law – subject Law of Torts I. Structure you approach along the following lines: – Unintentional false statement? – Claim of special skill of knowledge? – Serious circumstances? – Reliance on advice? – Loss resulted? – Is Reliance reasonably foreseeable

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