Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 18

Driver picked up Friend to accompany him on an outof-town delivery for his employer, Speedy Service. A "No Riders" sign was prominently displayed on the windshield of the truck, and Driver violated specific instructions of his employer by permitting an unauthorized person to ride in the vehicle. While discussing a planned fishing trip with Friend, Driver ran a red light and collided with an automobile driven by Motorist. Both Friend and Motorist were injured. Is Speedy Service liable to either Friend or Motorist for the injuries they sustained?