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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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- Spring '07
- Holiday Inn, apparent agency, franchisor Franchisee, Actual Agency