Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

A defamatory statement can maintain its conditional privilege if it is made in good faith. Conditional privilege typically applies in situations where the speaker has a legitimate interest in conveying the information to a party who has a corresponding interest in receiving it, such as in reports to authorities or in mutual communications regarding job performance. The requirement of good faith helps protect individuals from liability for defamation when they are acting in a way that is considered responsible and appropriate given the circumstances. This includes not having malicious intent or a desire to harm the reputation of the person being discussed.

The other conditions do not align with the principle of conditional privilege. For instance, a statement made with the intent to harm directly contradicts the good faith requirement. Similarly, while sharing defamatory statements publicly could lead to liability, it does not uphold the concept of conditional privilege, which often involves trusted communication rather than public dissemination. Lastly, the truth of a statement, while significant in defamation cases, pertains more to the defenses against defamation claims rather than the conditions that allow for conditional privilege.