Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 1

Consumer Fund Transfers. Stephen Patterson held an account with Suntrust Bank in Tennessee. Juanita Wehrman-with whom Patterson was briefly involved in a romantic relationship-stole his debit card and used it for sixteen months (well beyond the length of their relationship) to make unauthorized purchases in excess of $30,000. When Patterson learned what was happening, he closed his account. The bank refused to reimburse him more than $677.46- the amount of unauthorized transactions that occurred within sixty days of the transmittal of the bank statement that revealed the first unauthorized transaction. Is the bank's refusal justifiable Explain.