Vicarious liability
Article Abstract:
The 1996 court decisions in the Foodmaker and Ely cases both held that the franchisors were not vicariously liable for franchisees' acts. In Ely, General Motors was not liable for a wrongful death caused by a dealer's employee since GM did not have specific control over the test drive or employee involved in the death. In Foodmaker, the franchisor was not vicariously liable for a franchisee-employee's murder by a coworker; the plaintiffs had alleged liability due to inadequate security or negligent hiring.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1997
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Fraud
Article Abstract:
The Tenth Circuit's decision in the 1996 Konold case affirmed a ruling holding a franchisor's disclaimers barred subsequent claims of fraud. The disclaimers in the franchise agreement and offering circular barred the franchisee from claiming fraud when a Baskin-Robbins store site proved to be less profitable than expected. A similar 1996 Eighth Circuit fraud case is also discussed.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1997
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Antitrust
Article Abstract:
A 1996 antitrust case held the plaintiffs had failed to properly state a claim against McDonald's Corp. under the Sherman Antitrust Act. The plaintiffs failed to allege sufficient facts supporting claims of restraint of trade or monopolization. Two 1996 Seventh Circuit decisions, which concerned vertical price-fixing and the authority to set maximum prices, are also discussed.
Publication Name: Franchise Law Journal
Subject: Law
ISSN: 8756-7962
Year: 1997
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