Donald is a financial adviser with Australian Bank

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Donald is a financial adviser with Australian Bank. One day as he is coming home from a work party, his neighbour, Patricia, noticed Donald was having trouble walking and asked if he needed help, to which Donald responded by claiming he had too much to drink and not to worry about him. Following a short conversation, Patricia asks him for some advice on superannuation, in particular whether Prime Investa Services Ltd is a 'good' investment. Donald is unsure of the status of Prime Investa Services Ltd, and is unhappy with providing free information outside of work. So he tells Patricia that everything should be all right if she only invests a little sum of money but she should seek professional advise nonetheless as he is not too familiar with Prime Investa. 

Patricia rinvests 75 per cent of her superannuation pay out into Prime Investa Services Ltd. She also tells her sister Jenny, 'My neighbour, who is an investment adviser, says Prime Investa Services Ltd are a solid investment'. Three weeks later, the Prime Investa Services Ltd assets are frozen, pending an investigation. All investors are told that they have probably lost their investments.

 

Advise Donald, (using a minimum of 4 relevant case law) by addressing the following issues:

A. Whether Donad owed a duty of careto Patricia?  

B. Whether Donald owed a duty of careto Jenny?