Teleline, Inc. ran a telephone gambling game called “Let’s Make a Deal” (LMD) using a 900 phone number. Playing the game cost $3.88 a minute. People who called were not charged for the phone calls,...

Teleline, Inc. ran a telephone gambling game called “Let’s Make a Deal” (LMD) using a 900 phone number. Playing the game cost $3.88 a minute. People who called were not charged for the phone

calls, but only for the ability to gamble provided by Teleline. AT&T carried the calls over its long-distance lines, and Teleline paid AT&T for the cost of the calls. Felix Kemp’s grandson called the 900 number. AT&T listed Teleline’s charges under the heading “direct-dialed calls,” as long-distance charges mixed in with charges for long-distance calls on phone bills mailed to Kemp. AT&T’s name and logo were displayed on the pages showing the LMD charges. The LMD charges were illegal gambling debts not collectable under state law. Kemp’s local phone company told him he had to pay the charges, or his phone would be disconnected. He paid the phone bill and sued AT&T for violating RICO, claiming mail fraud. Were the bills so misleading that they constituted fraud?

Sep 08, 2022

SOLUTION.PDF

Teleline, Inc. ran a telephone gambling game called “Let’s Make a Deal” (LMD) using a 900 phone number. Playing the game cost $3.88 a minute. People who called were not charged for the phone calls,...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment