When Markus and Carl come home from a cocktail party to a seemingly empty house, take Carl to the main room for a drink. He soon notices the lights in the studio being and tells Markus to call the police. Do so and you can choose to investigate the supposed break-in with or without Carl.
You'll find Leo in there helping himself to some of his father's paintings. When the time comes to make Leo leave, select whatever option you like as they all end up the same.
Leo will then pick a fight to which Carl orders Markus not to defend himself. After taking a few hits, the unfairness of the situation proves enough to make Markus go deviant. Go through the prompts and another choice will soon pop up. Here, you can decide to keep taking the blows without doing anything, or to fight back somewhat and push Leo.
Cross Chapter Impact: Carl will always die regardless of how Markus decides to deal with his son. Only difference being Carl will live a bit longer if you push Leo, instead of dying from a heart attack on the spot. Should Carl live, Markus will have a chance to confide in him one last time near the end of the game. If Carl were to die however, there will a magazine article about him during the chapter Waiting for Hank.