Our client, Leo Makow, is seeking counsel regarding his potential credit card liability for charges made by his mother, Patty Makow. Leo owns a landscaping business in Queens, NY. Leo has retained the firm to help him with a credit card problem he is having with the bank that issued one of his credit cards, Chase Bank. The problem revolves around a series of charges made by Leo’s mother, Patty Makow, using Leo’s account. Leo wants the firm’s legal advice about his potential liability for each of the charges. When Leo’s father died late last year, his mother, Patty Makow faced some financial hardship. Several months ago, Patty came to Leo after her van broke down. The repair estimate was $1,500, and Patty did not have the ability to pay for the repairs. Leo gave Patty one of his credit cards that had a zero balance and told Patty that she could charge the van repairs, but Leo told Patty that the repair bill was the only thing for which she should use the credit card. Leo also gave his mother a note that stated that he was giving his mother permission to use his credit card: “I, Leo Makow, give my mother, Patty Makow, permission to use my Chase State Bank credit card [etc].” The note was signed and dated, and it included the credit card’s account number and the card’s expiration date.
The note did not limit the use of the credit card to a particular merchant, nor did it indicate an expiration date for the authorization. Patty Makow did in fact use Leo’s credit card at Martin’s Auto Repair. However, the final bill was $1,850 due to an additional $350 part that was needed. Patty charged the entire $1,850 to Leo’s account. Upon receiving the billing statement with this charge, Leo paid the statement in full on April 29, 2020. Over the following months, Leo’s mother charged gasoline twice at Friendly’s Gas Station, groceries at the Grim’s Corner Store, and books at Rendell’s Book Store. At the time of these purchases, Patty Makow still had physical possession of the credit card and Leo’s note; Leo had forgotten to retrieve them from his mother. Leo did not review his credit card statements carefully and had already paid these gas, grocery, and book charges in full before he called the law firm for advice. About six weeks ago, Leo asked his mother to return his Chase Bank credit card and the note that he had written.
Patty returned both, but without telling Leo about the gas, grocery, and book purchases she had made before returning the card. Nor did Patty tell Leo that she had written down Leo’s account information on a piece of paper that she had retained. Most recently, Patty Makow purchased an expensive set of power tools to do household and outdoor chores from the Franklin Hardware Store using Leo’s account. At the time of this final purchase, Patty no longer had in her possession the actual credit card or the note from Leo. Instead, she merely presented the hardware store clerk with the account name, number, and expiration date, and the clerk allowed the purchase. The credit card statement for June came, and this time Leo reviewed the statement and noticed the $1,200 power tools purchase.
Knowing that he had not bought any power tools, Leo asked his mother if she knew anything about it. His mother confessed that she had purchased the tools and apologized. She also told Leo about the gas, groceries, and books she had charged. These other charges have already been paid in full; only the Franklin Hardware Store charge remains unpaid. After talking to his mother, Leo immediately contacted Chase Bank, the card issuer, and disputed all the charges. The bank has notified Leo that it has rejected his position and contends that he is fully responsible for all charges.
Base the legal memo only on the two legal authorities and the two cases BAK Aviation System Inc v. World Airways Inc and Transmutual Insurance Co. v. Green Oil Co. ( only cite the information about the cases in the document; no outside sources) sections to include: 1. question presented 2. brief answer 3. A statements of facts 4. Discussion (analysis) – have subsections here 5. Conclusion as for the answer