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Business Organizations Keyed to Chasalow, 3rd Ed.
Hoover v. Sun Oil Company
Citation:
58 Del. 553, 212 A.2d 214 (1965)Facts
On August 16, 1962, a fire occurred at a service station operated by James F. Barone while the plaintiffs’ car was being filled with gasoline. The fire allegedly resulted from the negligence of John Smilyk, an employee of Barone. Barone operated the station under a lease and dealer’s agreement with Sun Oil Company since October 1960. Sun owned the station and most equipment, while Barone paid rent partially based on gasoline volume. Barone purchased petroleum products from Sun and was required to maintain Sun’s equipment and sell products under the Sunoco label. The station displayed Sunoco signs, and employees wore uniforms with the Sun emblem. Barone attended a Sun training school and received weekly visits from Sun’s sales representative who offered advice, took orders, and implemented Sun’s “competitive allowance system.” Despite these connections, Barone independently determined his business hours, hired and managed his employees, and assumed all profit and loss risks.
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