---
title: "Business Records Exception (FRE 803-6)"
type: Legal Rule
source: https://casebriefly.com/legal-rules/business-records-exception-fre-803-6
---

# Business Records Exception (FRE 803-6)

Records of a regularly conducted business activity are admissible as a hearsay exception if made at or near the time of the event, by a person with knowledge, as part of a regular practice, and authenticated by a qualified witness or certification.

## Definition

Federal Rule of Evidence 803(6) provides one of the most practically important hearsay exceptions — the business records exception. It allows the admission of records of a regularly conducted activity (commonly called business records) because such records carry inherent guarantees of trustworthiness. The systematic nature of regular record-keeping, the reliance placed on these records in conducting business, and the routine duty of accuracy combine to make business records generally reliable.

To qualify under FRE 803(6), several foundation elements must be established. The record must have been made at or near the time of the event recorded. It must have been made by, or from information transmitted by, a person with knowledge of the matters recorded. The record must have been kept in the course of a regularly conducted business activity. And making the record must have been a regular practice of that business activity. These foundation requirements can be established through the testimony of a qualified custodian or other qualified witness, or by certification that complies with FRE 902(11) or 902(12).

The rule contains an important escape valve: the record is inadmissible if the source of information or the method or circumstances of preparation indicate a lack of trustworthiness. This allows courts to exclude records that were prepared in anticipation of litigation, records based on information from outsiders with no business duty to report accurately, or records kept by entities with a motive to falsify. The business records exception applies broadly — 'business' includes every kind of regular activity, whether conducted by a for-profit corporation, nonprofit, government agency, or other institution. The absence of a business record entry may also be admissible under FRE 803(7) to prove that a matter did not occur.

## Elements

- The record was made at or near the time of the event
- The record was made by, or from information transmitted by, a person with knowledge
- The record was kept in the course of a regularly conducted business activity
- Making the record was a regular practice of that business activity
- The foundation is established by a custodian, qualified witness, or compliant certification
- The source of information and circumstances of preparation do not indicate a lack of trustworthiness

## Key Case

Palmer v. Hoffman, 318 U.S. 109 (1943)

## Landmark Cases

| Name | Citation | Significance |
| --- | --- | --- |
| Palmer v. Hoffman | 318 U.S. 109 (1943) | Held that an accident report prepared primarily for litigation rather than in the regular course of business did not qualify as a business record, establishing the 'litigation motivation' limitation. |
| Johnson v. Lutz | 253 N.Y. 124 (1930) | Foundational case holding that a police report containing statements from bystanders was inadmissible because the bystanders had no business duty to report accurately. |
| United States v. Vigneau | 187 F.3d 70 (1st Cir. 1999) | Addressed the requirement that each person in the chain of information must be acting within the regular course of business — outside informants' statements embedded in business records remain hearsay. |
| Petrocelli v. Gallison | 679 F.2d 286 (1st Cir. 1982) | Discussed the trustworthiness requirement and the court's discretion to exclude records prepared in connection with anticipated litigation. |

## Exam Tips

- Watch for the 'outsider problem' — if the information in the record comes from someone outside the business who has no duty to report accurately, that information is still hearsay within the record.
- Records prepared primarily for litigation (like accident reports for insurance) may fail the trustworthiness requirement even if they meet all other elements.
- A custodian or qualified witness must lay the foundation, but that person need not have personal knowledge of the specific entry — they must know the business's record-keeping practices.
- Remember that the absence of an entry in business records (FRE 803(7)) can be just as important as the presence of one.

## Common Mistakes

- Assuming that any document created by a business is a 'business record' — the record must have been made as a regular practice of the business, not just by someone who works there.
- Ignoring the outsider information problem — information provided by someone outside the business (e.g., a bystander's statement in a police report) is not covered by the business records exception and requires its own hearsay exception.
- Forgetting the trustworthiness escape valve — even if all foundational elements are met, the court can exclude the record if circumstances suggest it is untrustworthy.

## Mnemonic Or Memory Aid

Business Records need TRACK: Timely, Regular practice, Authorized person with Knowledge, Course of business, Trustworthy.

## Related Rules

- hearsay-rule-and-definition-fre-801
- authentication-fre-901
- best-evidence-rule-fre-1002
- present-sense-impression-fre-803-1

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Source: [Business Records Exception (FRE 803-6) — CaseBriefly](https://casebriefly.com/legal-rules/business-records-exception-fre-803-6)