The Seven-Up Company (Seven-Up) is a franchisor that licenses local bottling companies to manufacture, bottle, and distribute
Question:
The Seven-Up Company (Seven-Up) is a franchisor that licenses local bottling companies to manufacture, bottle, and distribute soft drinks using the 7-Up trademark. The Brooks Bottling Company (Brooks) was a Seven-Up franchisee that bottles and sells 7-Up soft drinks to stores in Michigan. Under the franchise agreement, the franchisee was required to purchase the 7-Up syrup from Seven-Up, but it could purchase its bottles, cartons, and other supplies from independent suppliers if Seven-Up approved the design of these articles. Brooks used cartons designed and manufactured by Olinkraft, Inc., using a design that Seven-Up had approved. Sharon Proos Kosters, a customer at a Meijer Thrifty Acres Store in Holland, Michigan, removed a cardboard carton containing six glass bottles of 7-Up from a grocery store shelf, put it under her arm, and walked toward the checkout counter. As she did so, a bottle slipped out of the carton, fell on the floor, and exploded, causing a piece of glass to strike Kosters in her eye as she looked down; she was blinded in that eye. Evidence showed that the 7-Up carton was designed to be held from the top and was made without a strip on the side of the carton that would prevent a bottle from slipping out if held underneath. Kosters sued Seven-Up to recover damages for her injuries. Is Seven-Up liable? Kosters v. Seven-Up Company, 595 F.2d 347, Web 1979 U.S. ApLexis 15945 (United States Court of Appeals for the Sixth Circuit)
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