Vicarious franchisor liability: marketing and public policy implications

Reports that franchisors are sometimes found liable for consumer injuries resulting from faulty products that the franchisor neither designed, manufactured, inspected, nor distributed. Examines the legal doctrines by which these outcomes are reached. In addition, reviews and supports the basic publi...

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Bibliographic Details
Published in:The Journal of business & industrial marketing 1997-10, Vol.12 (5), p.297-314
Main Authors: Morgan, Fred W., Stoltman, Jeffrey J.
Format: Article
Language:English
Subjects:
Case law
Consumers
Criminal liability
Distribution channels
Franchisees
Franchises
Franchising
Injuries
Laws, regulations and rules
Legal matters
Liability
Liability insurance
Litigation
Marketing
Product liability
Products liability
Public policy
State court decisions
Studies
Trademarks
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Description
Summary:Reports that franchisors are sometimes found liable for consumer injuries resulting from faulty products that the franchisor neither designed, manufactured, inspected, nor distributed. Examines the legal doctrines by which these outcomes are reached. In addition, reviews and supports the basic public policy arguments underlying vicarious franchisor liability. Finally, provides managerial recommendations for dealing with this aspect of the legal environment to both franchisors and franchisees.
ISSN:0885-8624
2052-1189
DOI:10.1108/08858629710183266