Problem:
BSSL had the opportunity to acquire through an assumption of debt/bankruptcy a small telecommunications company that operates several local telephone companies. The telecommunication company is small, but the marketplace and the potential growth made the acquisition price attractive to BSSL. One service that BSSL provides to its commercial customers is the use of "900 numbers" by which third-parties (clients of BSSL customers) receive products & services. Billing for these products and services is delineated as charges owed to BSSL instead of the business provider (e.g. Dudes with Dough, Lonely College Co-Eds, Madame Marie - Psychic to the Stars, etc.) and often blends into the small-print of phone bills and is overlooked by spouses, parents, and persons other than the third party user who might have access to the bill.
BSSL owns and operates Appalachian Bell, the local service provider for the mountain areas of North Carolina and Tennessee. You've just received a letter from Dewey Cheatham, Esq., who represents Ma & Pa Kettle of Mountaintop, NC. About a month ago, an employee in BSSL's accounts receivables department called the Kettle home regarding the $500.00 Delinquency on their phone account and attempted to collect the debt. The Kettles denied any knowledge of anyone using these services and refused to pay the charges.
Further investigation revealed that the phone calls to the dating hotline made from the Kettle phone were made by the Kettle's 12 year old grandson and some of his friends, who often spent weekends with them. What are the public law and private law implications of this scenario? Make a recommendation to the BSSL Board as to policies it should implement to address future problems.