CFE – Law — Question 68

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?

Answer options

• 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.

Correct answer: B

Explanation

Beatrice will not win her defamation case primarily because the information shared by Grant was true, and truth is a defense against defamation claims. Additionally, the communication made to her coworkers can be considered privileged, which further protects Grant from liability. Options C and D do not apply here because the nature of the communication and its truthfulness are the central issues in this case.