Author Question: Joint Ventures. Windy City Balloon Port, Ltd., operated a balloon launching facility near Barrington ... (Read 174 times)

jenna1 · **on:** Jun 24, 2018

Joint Ventures. Windy City Balloon Port, Ltd., operated a balloon launching facility near Barrington Hills, Illinois, offering public commercial sightseeing flights in hot-air and helium balloons owned by third parties. Windy City sold tickets for the balloon rides for 100 to 150 per person per ride. The pilot of the balloon would receive 60 to 70 directly from Windy City for each ticket sold but otherwise received no consideration from Windy City. Although Windy City provided refueling and repair facilities for the balloons and canceled balloon flights when the weather conditions were unsafe, Windy City had no control over the balloons after they departed from the balloon launch. On August 15, 1981, a hot-air balloon piloted by James Bickett departed from a launching site at Windy City. It was carrying five passengersKenneth Coleman, Jr., Terry Ritter, Brian Baker, William Keating, and Harry Evans. Shortly after takeoff, the balloon struck power lines and crashed to the ground, killing Bickett, Coleman, Ritter, Baker, and Keating. Evans survived, but sustained severe burns and injuries. In a lawsuit filed by representatives of the deceased passengers and others, one of the issues was whether Windy City and Bickett were involved in a joint venture. How did the court rule? Discuss fully.

Question 2

In Bearden v. Wardley Corp, where real estate agent Gritton cheated Bearden on a house deal, the court held that his employer, Wardley, was not liable because it had no way to know of his actions.
a. True
b. False
Indicate whether the statement is true or false

jaykayy05 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Joint ventures
The court held that Windy City and Bickett were engaged in a joint venture, with Bickett carrying on the usual course of its business when the balloon struck the power lines and crashed to the ground. The court defined a joint venture as an association of two or more persons to carry on a single enterprise for profit. The court explained that a joint venture may be established by such circumstances as whether the parties intended to carry on an enterprise for profit, whether the parties had a joint interest in the enterprise as reflected by the contribution of property, finances, effort, skill or knowledge by each party of the venture, whether there was a joint exercise of control over the enterprise, and whether the parties shared in the profits. From the record, the court concluded, it is plain that Windy City and Bickett were engaged in a joint venture. The court also reiterated that a joint venture is governed by partnership principles and each joint venturer is considered an agent of the joint venture for the purpose of carrying on its usual course of business. Because Bickett was carry-ing on the usual course of business of the joint venture when the balloon he was piloting crashed, we find that the hot air balloon here was an aircraft being used and operated by Windy City, by and through its agent Bickett, when it caused the injuries.

Answer to Question 2

FALSE