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Having the contractual right to exercise tight control over the other party’s business can make you vicariously liable for its misdeeds – article
“[A] recent California case delivered a blow to a tax preparation franchisor, finding the franchisor liable for its franchisees’ deceptive advertising and related activities.” Vicarious Liability Risks Continue, by Kimberly L. Sikora Panza and Robert A. Smith (Oct. 29, 2009, accessed Nov. 3, 2009).