Walgreen Company planned to open a restaurant in Duluth, Minnesota. A.J. Gatzke, a district manager for Walgreen, was sent to Duluth to supervise the opening. Gatzke obtained a room—paid for by Walgreen—in a motel owned by Edgewater Motels, Inc. One day after work, Gatzke and another Walgreen employee went to a bar near the motel. There Gatzke drank four brandy Manhattans in about one hour. Then Gatzke went back to his motel room where, apparently, he smoked several cigarettes after completing an expense account report. The butt of one cigarette was apparently thrown into a wastebasket in the room. The room caught on fire and the fire spread to the entire motel. Gatzke escaped uninjured, but the damage to the motel was more than $330,000. Edgewater Motels sued both Gatzke and his employer, Walgreen Company. Who is liable? (Edgewater Motels, Inc. v. Gatzke, 277 N.W.2d 11)