I recall long ago reading at least one case finding franchisor liability for the negligent property maintenance of an independent franchisee under an "apparent servant" doctrine.  I think I remember that one case involved Dairy Queen.

John

-----Original Message-----
From: Academy of Legal Studies in Business (ALSB) Talk [mailto:[log in to unmask]] On Behalf Of Miller, Carol J
Sent: Wednesday, May 26, 2010 2:30 PM
To: [log in to unmask]
Subject: Re: Frontline: Flying Cheap (PBS)

If it the case I am remembering --Texaco was not liable because the repair shop had a sign on it indicating it was a separate business and the owner of the repair shop had control over and paid the employees.

-----Original Message-----
From: Academy of Legal Studies in Business (ALSB) Talk [mailto:[log in to unmask]] On Behalf Of Bill Shaw
Sent: Tuesday, May 25, 2010 9:33 PM
To: [log in to unmask]
Subject: Frontline: Flying Cheap (PBS)

This documentary centered on a recent air disaster of a Colgan commuter plane
that was aligned with Continental.  You might remember the loss of life as the
flight into Buffalo crashed a few miles from the airport.

The FAA hearing concluded that pilot error was the cause of the 
crash.  Tickets
were purchased at a Continental counter, the planes were painted in 
Continental
colors, the travelers (or most of them) probably thought they were in 
Continental
hands, and so forth.  Plaintiffs were met with contractual firewall 
that stymied their
efforts at recovery.

I got the idea that the documentary was of recent origin, but there 
was no report on
litigation.  Surely there's something cooking out there.  Anyone 
picked up on some
good articles, or maybe written about it?

Centuries ago, there was a case against Texaco for the negligent 
repair of an auto
by one of their independent dealers.  Plaintiff claimed that the 
motto, "You can trust
your car to the man who wears the star," was one that inclined a 
person to trade
there, and that Texaco should be held for the dealer's 
negligence.  Anyone remember
that, or how it came out?