Final answer:
Brad, as a business law class instructor, likely has no duty of due care to Stan, Miranda's brother, because Stan is not his student and there is no professional legal advising relationship.
The correct answer is option 1) no duty of due care to Stan, but has to Miranda.
Step-by-step explanation:
The hypothetical scenario presented involves the idea of duty of due care in the context of legal advice given in an educational setting. When Brad, a business law class instructor, gives Miranda an incorrect answer to a legal question, which Miranda then passes to her brother, Stan, who suffers a loss due to acting on that advice, it raises the question of Brad's legal responsibility towards Stan and Miranda.
Generally speaking, in an educational context, the duty of due care that an instructor has is towards his or her students, in this case, Miranda. They do not typically have a professional legal advising relationship with individuals who are not directly their students (such as Miranda's brother, Stan), meaning that Brad most likely has no duty of due care to Stan, but he does have a duty to Miranda, as she is his student.
It's essential to understand that Brad's role as an instructor does not establish a professional client-advisor relationship with Stan, hence there is a limitation to the scope of Brad's duty of due care.