Problems 2 and 6

6. When Perry Olsen died, his children placed his ranch in Vail, Colorado, up for sale. Perry's children retained Vail Associates Real Estate, a real estate broker, to sell the land for them. Vail Associates introduced the children to Magnus Lindholm, who wanted to buy Perry's ranch along with adjacent land owned by Perry's children. The children eventually decided to sell only Perry's ranch and not the children's land. Their asking price for Perry's ranch was $400 per acre. Before committing to buying Perry's ranch (because he needed more land), Lindholm asked Vail Associates to introduce him to Del Rickstrew, whose land also abutted Perry's ranch. Rickstrew refused to negotiate the sale through a real estate agent, so Lindholm negotiated directly with Rickstrew. Vail Associates did, however, introduce Rickstrew to Lindholm and provide a model contract to Lindholm. A month later, Lindholm agreed to buy Rickstrew's land for $6,000 per acre, subject to his buying Perry's ranch also. Vail Associates was not aware that Lindholm and Rickstrew had a contract or that the price was $6,000 per acre. Two months later, with Vail Associates's assistance, the children sold Perry's ranch to Lindholm for $400 per acre. Vail Associates received a commission from the sale. When the children discovered later that Rickstrew received 15 times as much for his acreage as did they for Perry's ranch, they sued Vail Associates for failing to disclose material information-that is, that Lindholm was negotiating with Rickstrew. Did Vail Associates breach a fiduciary duty? `IJniversal unit, Nitrogen's vice president of finance, Babs Grogan, was7. The Work Connection (Connection) was a temporary employment agency that provided workers to customers for a fee. Doyle Olson, a sales representative for Connection, contacted Universal Forest Products (Universal). Olson spoke with Ken Von Bank, Universal's production manager, who had direct supervisory authority over temporary workers. Universal hired some of Connection's employees, including Wayne DeLage, to construct fence panels at its Shakopee plant. Olson gave to Universal work verification forms that were used as employee timecards. Universal filled out and signed the forms, which contained the worker's name, date, and hours worked. Submission of a completed, signed form was required for an employee to be paid, and Connection processed the forms through its payroll department. The work verification forms contained the following language: CUSTOMER AGREES TO THE TERMS AND CONDITIONS SET FORTH ON THE REVERSE SIDE HEREOF AND CERTIFIES THAT THE LISTED EMPLOYEES HAVE SATISFACTORILY PERFORMED SERVICES FOR THE HOURS SHOWN ABOVE. The back of the verification form stated the following: Page 36-17 CONDITIONS OF UNDERTAKING: CUSTOMER agrees to indemnify, hold harmless and defend THE WORK CONNECTION against claims, damages, or penalties from any claims for bodily injury (including death), or loss of, and loss of use of, or damage to, property arising out of the use of or operation of CUSTOMER'S owned, nonowned, or leased vehicles, machinery or equipment by THE WORK CONNECTION employees. The parties never discussed the language on the back of the work verification form. The parties' oral agreement did not include a term that required Universal to provide workers' compensation insurance for Connection's employees. Nonetheless, Von Bank signed the verification forms for Universal from March 1995 through July 1995, when the office manager, Yvonne Kohout, took over signing duties. At some point, Universal ran out of original work verification forms. Kohout simply photocopied the front side of the form and, thereafter, submitted forms that were blank on the back. In August 1995, DeLage severed three of his fingers while operating a radial arm saw. DeLage received $75,000 in workers' compensation benefits from Connection. Connection then asked Universal to indemnify it pursuant to the language on the back of the verification form.9. Gary Mccoy ordered a pizza from a Papa John's restaurant. The restaurant was owned by RWT, a franchisee of Papa John's International. RWT did business as Papa John's Pizza. Wendell Burke, an employee of RWT, delivered the pizza and obtained payment from Mccoy at his place of business. Burke lingered for almost two hours after being paid, asking Mccoy for a job and viewing a hunting videotape. When Burke returned to the Papa John's restaurant, to avoid criticism for being late he concocted the story that Mccoy held him against his will. The police arrested Mccoy for false imprisonment, which charges were eventually dropped. Mccoy sued Burke, RWT, and Papa John's International for malicious prosecution based on Burke's false statements. Does the doctrine of respondeat superior impose liability on the franchisor, Papa John's International, in this case?2. Albert Arillotta, acting for Interstate Demolition and Environmental Corp. (IDEC), sent an e-mail to CSX Transportation, a railroad company, stating an interest in buying rail cars as scrap. Arillotta represented himself to be "from interstate demolition and recovery express." The e-mail address from which Arillotta sent this inquiry was "albert@recoveryexpress.com." The domain name of the e-mail address was assigned to Recovery Express. Arillotta did not work for Recovery Express, but he was allowed to use its offices and e-mail because he had been involved in another venture with it. CSX agreed to sell rail cars to IDEC, and they were delivered to the location specified by Arillotta. Neither Arillotta nor IDEC paid for the rail cars. CSX sued Recovery Express to recover the price of the rail cars. Did the court hold Recovery Express liable to CSX on the grounds that Arillotta had apparent authority to transact for Recovery Express