First Principles of Business Law

11. Defamation

11.1. Liability for wrongfully injuring another person's reputation

Read the example below, and then answer the questions.

A and B operate competing food outlets in a shopping strip. In an effort to gain a business advantage, B tells C that A has been convicted on several occasions for breach of hygiene regulations. He also writes a letter to a local paper saying: "It is difficult to run a successful business in competition with dishonest traders". The letter is published. B tells A that he will object to A's application for a liquor licence. B says privately to A: "You are a crook and shouldn't be allowed to sell liquor".

1. Is B liable for defamation on the grounds of B's statement to C that A has convictions under the hygiene regulations?

2. Is B liable for defamation on the grounds of the letter published in the paper even though the letter does not name A?

3. Is B liable for defamation because of the remarks that B made to A privately, calling A a crook?

4. If A sues B for defamation because B said that A has convictions under the hygiene regulations, could B raise any defence?