Sharon Proos Kosters v. The Seven-Up Company, & Third Party

MERRITT, Circuit Judge.

During the past two decades, franchising has become a common means of marketing products and services, but our legal system has not yet settled the principles that define the liabilities of franchisors for injuries sustained by customers of their franchisees. This diversity case requires us to interpret the theories of tort and contract liability which Michigan law allows a jury to consider when deciding whether an injured purchaser is entitled to recover against the franchisor of a product.

I. STATEMENT OF THE CASE

The defendant, the Seven-Up Company, appeals from a…