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PEEPLES v. KAWASAKI HEAVY INDUSTRIES, LTD.

No. 75-2950; SC 25430.

603 P.2d 765 (1979)

288 Or. 143

James E. PEEPLES, Respondent, v. KAWASAKI HEAVY INDUSTRIES, LTD., and Kawasaki Motors Corp., U.S.A., Appellants.

Supreme Court of Oregon, In Banc.

Decided December 4, 1979.

Attorney(s) appearing for the Case

Jeffrey M. Batchelor, of Gearin, Landis & Aebi, Portland, argued the cause for appellants. With him on the briefs were John Gordon Gearin, and Davies, Biggs, Strayer, Stoel & Boley, Portland.

John R. Faust, Jr., of Hardy, McEwen, Newman, Faust & Hanna, Portland, argued the cause and filed a brief for respondent.

HOLMAN, Justice.

The issue in this case is whether the manufacturer and the distributor of Kawasaki motorcycles are vicariously liable for the negligence of a local dealer or his employee in performing service work provided for under the terms of a warranty agreement entitled "Selling Dealer's Warranty," which was prepared by the distributor and furnished to the motorcycle purchaser by the dealer. The primary question is whether the dealer while performing that work...

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