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The SlurpeeLand Corpo- ration (SlurpeeLand) owns the 7-Eleven trademark and licenses franchisees to operate convenience stores using this trademark. Each franchise is independently owned and operated. The franchise agreement stipulates that the franchisee is an independent contractor who is authorized to make all inventory, employment, and operational decisions for the franchise.
Milhouse Van Houten, 17 years old, died of respiratory failure. His parents filed a wrongful death action against both the Springfield franchisee and SlurpeeLand, alleging that Milhouse’s death resulted from his consumption of Djarum Specials (clove cigarettes) sold at the Springfield 7-Eleven franchise store. The Springfield 7-Eleven was franchised to Homer and Marge Simpson. SlurpeeLand defended, arguing that it was not liable for the alleged tortious conduct of its franchisee because the franchisee was an independent contractor. The plaintiffs alleged that the franchisee was SlurpeeLand’s agent and therefore SlurpeeLand was liable for its agent’s alleged negligence of selling the clove cigarettes to their son.
Is the Springfield franchisee an agent of SlurpeeLand, thus making SlurpeeLand liable for the alleged tortious conduct of its franchisee? Does the doctrine of apparent agency apply in this case? Who wins? Explain.
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