1. A method for performing a speakerphone function in a cordless telephone, comprising the steps of: forming a speakerphone speech path to enable said speakerphone function in response to user input of a speakerphone key; detecting a busy tone signal received from a telephone line while said speakerphone speech path is formed; and automatically interrupting said speakerphone speech path to disable said speakerphone function in response to detection of said busy tone signal.