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

Which of the following best describes the main reason a business must be aware of the legal aspects of its communication?

A business must know the legal aspects of communication because its messages, such as quotations, offers, acceptances and notices, can create rights and obligations or serve as evidence in disputes. Careless wording can therefore expose the organisation to liability, which is the main reason for legal awareness.

  1. AWritten messages can create legal rights and liabilities for the organisationCorrect
  2. BLegal language makes every message shorter
  3. CLaw prescribes one common format for all business letters
  4. DOral messages are never covered by any law

Explanation

Business messages such as quotations, offers, acceptances and notices can bind the firm in law or be used as evidence. Hence awareness of legal aspects is needed. The claim that law prescribes a single letter format is wrong, as formats are matters of business practice, not statute.

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