Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 9

When the concluding question in a case problem can be answered simply yes or no, state the legal principle or rule of law that supports your answer.
Teleline Inc ran a telephone gambling game called "Let's Make a Deal" (IMD) 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 or 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 bins so misleading that they constituted fraud?