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

A manager sends an internal circular falsely stating that a named employee stole stock, though no proof exists. The employee's reputation is lowered among colleagues. This communication mainly exposes the company to a claim for:

The company is exposed to a claim for defamation. Circulating a false statement that an identifiable employee stole stock, without proof, publishes damaging content to others and lowers the employee's reputation. Copyright, passing off and anticipatory breach deal with other matters and do not apply to this situation.

  1. ADefamationCorrect
  2. BBreach of copyright
  3. CPassing off
  4. DAnticipatory breach

Explanation

Publishing a false statement that harms a person's reputation to others is defamation. Copyright concerns protection of original works, passing off concerns misuse of goodwill or brand, and anticipatory breach relates to contracts, so none fits.

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