Vicarious franchisor liability: marketing and public policy implications

Abstract

Reports that franchisors are sometimes found liable for consumer injuries resulting from faulty products that the franchisor neither designed, manufactured, inspected, nor distributed. Examines the legal doctrines by which these outcomes are reached. In addition, reviews and supports the basic public policy arguments underlying vicarious franchisor liability. Finally, provides managerial recommendations for dealing with this aspect of the legal environment to both franchisors and franchisees.

Citation

Morgan, F.W. and Stoltman, J.J. (1997), "Vicarious franchisor liability: marketing and public policy implications", Journal of Business & Industrial Marketing, Vol. 12 No. 5, pp. 297-314. https://doi.org/10.1108/08858629710183266