The latest Webmaster video is a response to the question:
How does duplicate copy that’s legally required (i.e. Terms & Conditions across multiple offers) affect performance in search?
Matt Cutts clarified that when it comes to legal content like the one we see in terms & conditions and disclaimers, Google does not count on it. However, if there's keyword stuffing, spamming, or anything that is related to the quality issue, Google might take manual or algorithmic action. Google will not even raise a question of duplicate content for legally required pages, unless it is spammy in nature.
He further added, "Google understands that there are places across the web where legal information, disclaimer, and similar sort of stuff is required. Therefore, if we don't rank that stuff, it will not affect the overall search quality. As long as your disclaimers and terms are not spammy & you follow the Google quality guidelines, there's nothing to worry about".
Cutts also noted that there was a follow-up comment to the question and some people from the financial industry are looking for clarification related to legal content. So, it was essential for Google to clarify the related doubts.Matt Cutts on Content Duplicity in Disclaimers, Terms & Conditions, and More!,