Country Burger, Inc. is a franchisor. Joe owns and operates a Country Burger franchise.   Country Burger, Inc. exercises a lot of control over the way their franchisees handle food safety, food preparation and food equipment.  Jess finds a mouse tail in her burger and sues Country Burger, Inc and Joe   a. Both Joe and Country Burger, Inc. will be liable to Jess.   b. only Joe will be liable to Jess.   c. only the employee who prepared the burger will be liable to Jess.   d. Country Burger, Inc will not be liable since this occurred in Joe's restaurant.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
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  1. Country Burger, Inc. is a franchisor. Joe owns and operates a Country Burger franchise.   Country Burger, Inc. exercises a lot of control over the way their franchisees handle food safety, food preparation and food equipment.  Jess finds a mouse tail in her burger and sues Country Burger, Inc and Joe
      a.

    Both Joe and Country Burger, Inc. will be liable to Jess.

      b.

    only Joe will be liable to Jess.

      c.

    only the employee who prepared the burger will be liable to Jess.

      d.

    Country Burger, Inc will not be liable since this occurred in Joe's restaurant. 

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