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

Sunil, a CMA, tells a client in a private meeting, in the presence of no one else, that the client's rival Arun is a cheat. Arun later learns of it. Based on the elements of defamation, what is the position about the statement made to the client?

It can amount to slander of Arun. The words were spoken, so they are slander, and telling the client satisfies publication to a third party. Slander usually needs proof of special damage unless it falls in an exceptional category, so it is not libel and not automatically immune.

  1. AIt is not defamation of Arun, because it was spoken and slander is never actionable
  2. BIt is libel, because the client heard it directly
  3. CIt is not actionable against Sunil for Arun, because the client was a trusted professional contact
  4. DIt can be slander of Arun, because it was published to the client, a third party, though special damage may need to be shown unless an exception appliesCorrect

Explanation

The words were spoken, so slander, and the client is a third party, so publication occurred. In general slander requires proof of special damage, except in categories such as imputation of a crime or unfitness in a profession or trade. The claim that slander is never actionable is wrong.

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