On August 24, William Garris III and David Billups flew from Raleigh, North Carolina, to Joplin, Missouri,

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On August 24, William Garris III and David Billups flew from Raleigh, North Carolina, to Joplin, Missouri, on a business trip for their employer, Carolina Forge Co. The trip was scheduled to take place from August 24 to August 27, in Joplin. The primary purpose of the trip was to participate in a golf outing at the invitation of F.A.G. Bearings, a Carolina Forge customer. In advance of the trip, Carolina Forge paid for the airline tickets for Garris and Billups and for their rental car. Carolina Forge also paid for hotel rooms for the men. In addition, Carolina Forge gave Garris and Billups $600 in cash to pay for expenses incurred during the trip. The $600 was intended to pay for entertaining customers and for gas in the rental car. Carolina Forge also had a policy of reimbursing employees for additional out-of-pocket expenses during business trips, including meals, snacks, and alcoholic beverages. Carolina Forge was aware that alcohol would likely be consumed on the particular business trip Garris and Billups would be taking. 

Garris and Billups arrived in Joplin on the evening of August 24 and checked into their hotel. The next morning, they visited the F.A.G. Bearings headquarters. Next, Garris and Billups arrived at another F.A.G. facility, where they took a tour and then delivered a presentation to company representatives. Following the presentation, Garris and Billups toured another portion of the facility. Garris and Billups then took three F.A.G. Bearings representatives to lunch in Joplin. After lunch, Garris and Billups played golf with F.A.G. Bearings representatives at a course just outside Joplin. Later, Garris and Billups had dinner and drinks at a Joplin steakhouse. No F.A.G. Bearings representatives joined Garris and Billups for dinner. Garris and Billups then went to a casino located approximately 30 miles west of Joplin. No representatives from F.A.G. Bearings accompanied Garris and Billups to the casino. After spending several hours at the casino (where they used their own money for drinks and for gambling), Garris and Billups decided to return to their hotel in Joplin. Upon leaving the casino, Billups drove the rental car. Because Billups took the wrong appropriate ramp for the relevant interstate highway, he and Garris were going away from Joplin rather than toward it. When Billups attempted to turn around, he negligently caused the rental car to collide with a truck in which Charles and Jennifer Sheffer and their son were riding. All three Sheffers were injured in the collision, as was Garris. Billups died in the accident.

The Sheffers sued Carolina Forge on two theories: respondeat superior, under which an employer is liable for an employee’s tort if it was committed within the scope of employment, and negligent entrustment of a vehicle (the rental car) to Billups and Garris. The trial court granted summary judgment in favor of Carolina Forge on both claims. Was the trial court correct in granting summary judgment to Carolina Forge on the respondeat superior claim? Was the trial court correct in granting summary judgment to Carolina Forge on the negligent entrustment claim?

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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