If an agent publishes a derogatory article about the funeral condition of an insurer, what might they be guilty of?

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Prepare for the Texas Funeral Prearrangement License Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct answer is defamation because it specifically encompasses the act of making false statements about an individual or entity that can harm their reputation. In this scenario, if an agent publishes a derogatory article about an insurer's funeral conditions, and if the statements made are untrue, it constitutes defamation. This legal concept covers both written (libel) and spoken (slander) communications that damage someone's reputation.

While slander refers explicitly to spoken statements, the context of a published article typically falls under libel, a subtype of defamation that addresses written words. Therefore, defamation is the broader term that accurately captures the legal implication of publishing harmful, false information about someone or a business.

The other terms do not precisely address the nature of the action. Injustice refers more to the general unfair treatment of individuals or groups and does not specifically relate to the reputational harm caused by false statements. Unfair competition deals with business practices that are dishonest or deceptive to gain a competitive advantage but is not specifically relevant to the act of publishing derogatory articles. Thus, defamation is the most comprehensive and accurate term for the situation described.

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