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Notes 4-09-07 - There was an altercation in the parking...

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4/9/07 Operational Issues - Franchisor and Franchisee as Independent Contractors - Vicarious Liability of Franchisor for act of Franchisee - Actual Agency (Principal/Agent Relationship) - Apparent Agency Cislaw v. Southland - Sue because their son died from clove cigarettes sold to him by a 7-11 store. - Suing Southland Corporation who franchised the 7-11 store. Wrongful death case - New York is very restrictive - California is very open to possible charges for death cases Not vicariously liable 1. Court will examine all facts to see if independent contractor relationship exists. 2. Substantial control over means and manner in which the result is achieved Principal-Agent relationship – principal in control Type, quality, quantity and variety were suggested for products in 7-11 By Franchisor. Very little guidance Holiday Inns v. Shelburne Two groups of people at a Holiday Inn hotel bar had to park in adjacent parking lot
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Unformatted text preview: There was an altercation in the parking lot (off Holiday Inn property) after everyone left the bar. One person pulls out a gun and shoots the other three people. Suing the franchisee and the franchisor Franchisee is directly liable because they knew of the potential risk. The three elements needed to establish apparent agency, often referred to as agency by estoppel, are: (1) a representation by the principal; (2) reliance on that representation by a third person; and (3) a change of position by the third person in reliance upon such representation to his detriment. 1. Representation by Holiday Inn of America-signage, architecture, and color scheme-family friendly 2. Chose that bar over others 3. Death and injury Actual Agency – standardized operating procedures – means and manner result...
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Notes 4-09-07 - There was an altercation in the parking...

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