Bill is the owner of a small computer company. Steve is the…
Bill is the owner of a small computer company. Steve is the owner of another small computer company that is in competition with Bill. Both Bill and Steve are applying to the same bank for a business loan that they will use to expand their businesses. The bank can only afford to give one of them the loan. The bank decides to meet with Bill and Steve together and then decide who to give the loan to. At the meeting, the bank decides to give Bill the loan and Bill excuses himself to go call his partner Paul and tell him the news. While Bill is out of the room, Steve tells the bank officials that Bill is a corrupt businessman who has no intention of repaying the loan. Steve is lying but the bank does not know this. As a result, the bank refuses to give Bill the loan. If Bill sues Steve for defamation, he will be able to prove Steve defamed Bill.
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