Actually, in the Gizzi "You Can Trust Your Car to the Man Who
Wears the Star" case, apparent authority was a distinct possibility, as
ordered by the circuit court.  
	In Gizzi v. Texaco, Inc., 437 F.2d 308 (3d Cir.), cert. denied,
404 U.S. 829 (1971), the Third Circuit Court of Appeals overturned a
directed verdict for franchisor Texaco.  The franchisee negligently had
repaired the brakes on a car that it subsequently sold to the plaintiff,
who was injured
when these brakes failed.   There was no actual agency between Texaco
and its franchisee.   The appellate court, however, held that an
apparent agency may have been manifested by communications directly to
the plaintiff or, indirectly, by signs or other advertising to the
community.  This court found that Texaco insignia as well as its
national advertising slogan, "Trust Your Car to the Man Who Wears the
Star," could have led the plaintiff reasonably to rely on an apparent
agency; the matter was a question of fact for the jury to determine. 
	Feel free to look at my lengthy posting from this morning!
	Robert	 

Robert W. Emerson
Huber Hurst Professor of Business Law 
Warrington College of Business Admin.
University of Florida
[log in to unmask]
 

-----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 3:30 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?