Is a statement considered defamatory if it is made in a business setting?

Yes, a statement can be considered defamatory even if it is made in a business setting. According to North Carolina law, a statement is considered defamatory if it tends to expose the person to hatred, ridicule, or contempt, or causes them to be avoided or shunned. Additionally, a statement can be considered defamatory if it imputes the person to have committed a crime or to have a loathsome disease, or lowers the person in the estimation of the community or people generally. The North Carolina Supreme Court has determined that defamatory statements made in a business setting, such as during a business meeting or on a company memo, can be actionable. Business owners, managers, or employees could be sued for making false or disparaging statements about someone in a business setting, and potentially be liable for damages if the statement is found to be defamatory. The law also recognizes that certain business contexts will have different standards of truth and accuracy. For example, a competitor’s statement about their own product or services may be considered opinion rather than fact, and thus not be actionable. As a result, it is important for business owners and employees to be aware of the potential consequences of making defamatory statements in a business setting. Businesses should strive to never make false or disparaging statements about someone, as the legal risks can be substantial.

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