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Exam CFE - Law topic 1 question 32 discussion

Actual exam question from ACFE's CFE - Law
Question #: 32
Topic #: 1
[All CFE - Law Questions]

Grant, a fraud examiner, is investigating Beatrice for embezzlement on his employer's behalf. During his investigation, Grant learns that Beatrice has cheated on her spouse, and he tells several of Beatrice's coworkers about it. Beatrice discovers that Grant revealed the unflattering (albeit true) information about her and decides to file a claim of defamation against Grant. Which of the following is the BEST explanation of why Beatrice will not win her defamation case?

  • A. The information was true.
  • B. The communications to the subject's coworkers were privileged.
  • C. The statement was not printed and distributed.
  • D. The news was not communicated to enough people.
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Suggested Answer: B 🗳️
by raochavan at Sept. 3, 2024, 10:01 p.m.

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raochavan
1 month, 2 weeks ago
A. The information was true. Explanation: In a defamation case, a key defense is that the statement made is true. Defamation involves making false statements that harm someone's reputation. Since the information about Beatrice's personal life was true, it does not meet the criterion for defamation, even though it may have been harmful. The truth is a complete defense to defamation claims, meaning Beatrice will not win her case based on the truth of the statements made by Grant.
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