Legal Question in Business Law in Pennsylvania

I work for a company that sells products via internet & telephone orders. Recently, my co-worker fulfilled a telephone order for about $900 that wound up being credit card fraud. The card owner was forgiven payment from her credit card, so our company had to repay the charge. Unfortunately, the items purchased had very little mark-up so the actual cost to replace was very close to the charged amount. My boss is making my co-worker pay him the full amount of the charge thru monthly deductions from his paycheck. We are in PA. Is this legal? Isn't there business insurance or some other recourse? My co-worker was following normal protocol, even though the delivery address did not match the address connected to the card. (We have many good, long-time customers who may sometimes use a personal CC that is not connected to the business.) All other aspects of card info was correct, including the 3-digit cvv code. It was an honest mistake. Please advise?


Asked on 6/09/10, 3:43 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

An attorney will say to consult with your state's labor department about this issue. In most states, this is not a legal practice. Consult with an attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 6/10/10, 6:15 am


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