Genuine Motors advertises itself as an authorized dealer of pre-owned Ford automobiles. In fact, Genuine Motors is not an authorized dealer, but Ford Motors internally decided not to pursue any legal remedies against Genuine Motors and similar companies, because it concluded that such litigation would be too expensive, and dealers would simply open up under a new name.

Genuine Motors begins to provide its customers warranty agreements, under which customers promise to pay Genuine Motors $1000 annually for five years for full warranty coverage backed by Ford Motors. Additionally, Genuine Motors offers full warranty purchasers a complimentary Ford Motors lifetime car washing deal which gives customers a monthly free car wash at Genuine Motors. When Ford Motors finds out about these unauthorized warranties, it sues Genuine Motors, which promptly shuts down and files for bankruptcy.

Is Ford Motors liable to Genuine Motors customers? If so, please explain the extent of Ford Motors liability and what the basis for Ford Motors liability would be?