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

A company manager sends a defamatory email about a rival firm's financial condition to several clients, stating facts he cannot prove. The main legal risk the manager's firm faces is:

The firm faces liability for defamation because an unproven statement harming the rival's reputation was published to third parties through email. The medium, language used or the size of the rival does not remove this liability.

  1. ALiability for defamation, as the statement was published to third partiesCorrect
  2. BNo liability, as email is not a permanent record
  3. CLiability only if the email was in a foreign language
  4. DNo liability if the rival is a larger firm

Explanation

Defamation requires a false statement harming reputation that is communicated to third parties. Emails sent to several clients satisfy publication, and the sender cannot prove the truth. Medium, language or the rival's size do not remove liability.

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