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

A manager gives an honest, confidential reference about a former employee to a prospective employer who asked for it, stating facts she believes true, though one later proves mistaken. Which defence is most relevant to protect her from a defamation claim?

Qualified privilege applies. A good-faith, non-malicious reference given to a prospective employer with a legitimate interest is protected even if a detail turns out mistaken. Absolute privilege is confined to settings such as parliamentary proceedings, so it does not fit this business reference.

  1. AQualified privilege, since it was made in good faith on a duty basis to a person with a legitimate interestCorrect
  2. BAbsolute privilege, as used in Parliament proceedings
  3. CVolenti non fit injuria, as the employee agreed to the reference
  4. DInevitable accident, since the error was unintended

Explanation

Statements made in good faith, without malice, to someone with a legitimate interest, such as a reference to a prospective employer, attract qualified privilege. Absolute privilege covers limited settings like parliamentary proceedings. The other options do not fit the facts of a good-faith reference.

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