1. What is the difference between actual and apparent agency? What tests are used to evaluate whether each is present in a given case?
2. Is it fair to hold McDonald’s Corporation liable when its franchisee cooks the food and is most likely in the best position to control whether foreign objects enter the food?
3. What can a franchisor do to protect itself against liability arising out of the acts of its franchisee?
4. Procedurally, what will happen next in this case?

Plaintiff seeks damages from defendant McDonald’s Corporation for injuries that she suffered when she bit into a heart-shaped sapphire stone while eating a Big Mac sandwich that she had purchased at a McDonald’s restaurant in Tigard. The trial court granted summary judgment to defendant on the ground that it did not own or operate the restaurant; rather, the owner and operator was a non-party, 3K Restaurants (3K) that held a franchise from defendant. Plaintiff appeals and we reverse