Legal Definitions - business entry

A business entry refers to a document, record, or piece of information created and maintained by a business or organization in the regular course of its operations. These entries are considered reliable enough to be presented as evidence in court, even though they might otherwise be considered "hearsay."

To understand why a business entry is admissible, it's helpful to briefly explain two legal concepts:

• Hearsay: Generally, courts do not allow "hearsay" evidence. Hearsay is an out-of-court statement offered in court to prove the truth of the matter asserted. The concern is that the person who made the statement isn't present to be questioned under oath, making its reliability questionable.
• Business-Records Exception: However, the law recognizes that certain types of hearsay are inherently reliable. Business records fall under a common exception to the hearsay rule. This is because businesses rely on these records for their day-to-day operations, and they are typically made routinely and accurately, not in anticipation of a lawsuit. Therefore, a "business entry" is a record that qualifies under this exception.

Here are some examples illustrating what constitutes a business entry:

• Example 1: Hospital Patient Chart

  Imagine a patient sues a hospital, claiming they were given the wrong medication. The hospital's defense might rely on the nurse's notes in the patient's electronic health record, which detail the exact time and dosage of medication administered. These notes, made by the nurse during their shift as a routine part of patient care, are a business entry. They are considered reliable because they were created in the ordinary course of the hospital's operations, not specifically for the lawsuit, and the hospital depends on their accuracy for patient safety and treatment. Therefore, they can be admitted as evidence to show what medication was given and when.

• Example 2: Company Sales Ledger

  Consider a dispute between two companies over a large order of goods. Company A claims Company B never paid for a specific shipment. Company A's accounting department can present its sales ledger, which contains entries for all invoices issued, payments received, and outstanding balances. This ledger, routinely updated by the bookkeeper for financial tracking and tax purposes, is a business entry. It's admissible because it's a record kept in the ordinary course of business, relied upon by the company for its financial health, and thus presumed to be accurate regarding the transactions.

• Example 3: Manufacturing Quality Control Log

  Suppose a consumer sues a car manufacturer, alleging a defect in a specific vehicle component. The manufacturer might introduce its quality control log from the assembly line, which includes entries detailing inspections, tests performed, and the results for each component batch. These logs, filled out by technicians as part of the standard manufacturing process to ensure product quality and compliance, are business entries. They are admissible because they are routine operational records, essential for the manufacturer's production standards and safety, and therefore considered trustworthy evidence of the component's condition at the time of manufacture.