N15

Pup & Taco, Inc. is a successful restaurant. Pup & Taco proved to be so successful that the owners decided to sell franchises for $50,000 plus 5% of any profit generated by the franchisee. A franchisee would acquire the right to use the Pup & Taco name on its restaurant but would be responsible for making all of its own business decisions - from what food items to serve, to how they would be prepared, to where and from whom to purchase the ingredients, to what their restaurant would look like and to how their employees would be dressed. Pup & Taco, Inc. would not have any contact or communication with a franchisee except when one fell behind in its franchise payments. Bill purchased a Pup & Taco franchise and opened a restaurant to sell fast food. Unfortunately, a piece of glass found its way into one of its hamburgers and injured one of Bill's patrons. The patron asserted a claim against Pup & Taco, Inc. In this circumstance:

A Pup & Taco, Inc. is liable for the patron's injury because Bill is an agent of Pup & Taco, Inc.

B Pup & Taco, Inc. is liable for the patron's injury because Bill and Pup & Taco, Inc. are partners

C Pup & Taco, Inc. is liable for the patron's injuries because Bill and Pup & Taco, Inc. are joint venturers

D Pup & Taco, Inc. is not liable for the patron's injuries