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Problem:

Windy City Balloon Port ran a balloon launching facility in Illinois, offering sightseeing flights in hot-air and helium balloons owned by third parties. Windy City sold tickets for the balloon rides for $100 per person per ride. The pilot of the balloon would receive $60 directly from Windy City for each ticket sold. Although Windy City provided refueling and repair facilities for the balloons and canceled flights when weather conditions were unsafe, Windy City had no control over the flights once they left port. One day, a balloon piloted by Stevenson left the launch site carrying 6 passengers. It struck power lines and crashed killing everyone on board. Family members of deceased passengers sued for wrongful deaths. One of the issues that had to be resolved before liability could be assessed was whether Windy City and Stevenson were involved in a joint venture.

Required:

Question 1) What should the court rule on the issue of whether this was a joint venture? Discuss fully.

Solve the problem carefully and show all work.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91147560

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