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Franklin operates a stereo electronics facility in Stockton, CA. We have contracted with a California company, ABC Logistics, to coordinate deliveries of the finished

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Franklin operates a stereo electronics facility in Stockton, CA. We have contracted with a California company, ABC Logistics, to coordinate deliveries of the finished stereo components. Movement, Inc, delivers the components to various retailers across the state. Recently, ABC told Movement to transport three pallets of parts from Stockton to Sacramento. Movement dispatched its driver, Rita Martin, to Stockton to pick up the shipment. At the loading dock, Rita noticed that the pallets would fit inside the trailer only if they were stacked. She was concerned that the load might shift during transport. However, the Movement dispatcher and the ABC supervisor told her that she would not be liable for any damage. The pallets were then loaded, and Rita drove the load to Sacramento. When she opened the trailer door, the top pallet slipped. As Rita tried to close the door to prevent the pallet from falling, she injured her shoulder and arm. She filed a suit against ABC and Movement, claiming negligence. We are concerned that this lawsuit might impact our ability to get parts delivered on time. However, before we decide whether to sever our relationship with ABC and Movement, we would like you to advise us on their possible liability to Rita. Are either ABC or Movement liable to Rita? Do they have a defense? What do you think will be the outcome of this case?

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