I can think of two good responses:
A). Admission of party-opponent
B) Not an assertion of fact, but a verbal act. The words have independent legal significance. They constitute the act of defamation complained of in the counterclaim.

Now turn to Problem 11-1, p. 600. This is a criminal case (State v. Dealer), on a charge of conspiracy to distribute drugs. The State's first witness is the undercover cop, Clean Cut. At the top of page 601, the cop says "I was sitting in bar talking to Middle Man. We were talking about the sale of drugs."

If defendant objects and moves to strike this testimony as hearsay, how should the prosecutor respond?

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