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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication

A business magazine publishes a true report, based on court records, that a named trader was convicted of cheating. The trader sues for libel claiming loss of reputation. Which statement is correct?

The trader fails. Truth, also called justification, is a recognised defence to defamation, so a true report of a conviction from court records does not give rise to damages even though it harms reputation. Consent of the person and absence of profit motive are irrelevant.

  1. AThe trader succeeds because any reputation loss gives a right to damages
  2. BThe trader succeeds because the magazine did not take his permission
  3. CThe trader fails because truth, when established, is a defence to defamationCorrect
  4. DThe trader fails only if the magazine proves it acted without profit motive

Explanation

Justification, that is truth of the statement, is a recognised defence to a defamation claim. The magazine's report is true and from court records, so reputation loss is no ground for damages. Permission and profit motive are irrelevant to the defence.

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