Business law?
Maria receives two new credit cards on May 1. She had solicited one of them from Midtown Department Store, and the other had arrived unsolicited from the High Flying Airlines. During the month of May, Maria makes numerous a credit card purchases from Midtown Store, but she does not use the High Flying Airlines card. On May 31, a burglar breaks into Maria's home and steals both credit cards, along with other items. Maria notifies the Midtown Department Store of the theft on June 2, but she fails to notify High Flying Airlines. Using the Midtown credit card, the burglar makes a $500 purchase on June 1 and a $200 purchase on June 3. The burglar then charges a vacation flight on the High Flying Airlines card for $1000 on June 5. Maria receives the bills for these charges and refuses to pay them
Answers:
This isn't a real world question, but a law school exam question, and asking it here is distinctly unethical. It also exposes you to incorrect answers, like the one above - which is reasonably close, but still incorrect.
By Law she is responsible for only $50 to each card. Normally though in the event of thief this is waived by the card issuer.
Why is she liable for the High Flying? Because the card was in her possession she did not destroy the card. Holding onto the card for so long, even if she didn’t use it, demonstrates a desire to use the card. Her only out is if she didn’t sign the back, which is similar to signing a contract. If she did not sign the card then she is not responsible for it. Is it ethical for the company to charge her, no, but it is the law. If she didn’t want it she should have destroyed it.
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