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Caution undesirable users that your item isn't planned for them. This step conserved Helene Curtis Industries from a civil penalty. check here and Cosmair's L'Oreal Creme designer were offered just to charm parlors and marked clearly "for expert use just." But Ms. Hendren, an amateur, bought some of each at a Terrell, Oklahoma appeal shop to bleach Marjorie Ann Pruitt's hair.

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While she then delighted in an iced tea, the solutions burned Pruitt's scalp. Pruitt took legal action against Helene Curtis and Cosmair, declaring the items were defective. She lost since both companies had plainly made an effort to restrict circulation to experts. Hendren had no training as a beauty therapist and had failed to take the safety measures a beautician usually would.

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However the new corporation needs to be carefully structured. The crucial concern is whether the subsidiary is in fact a distinct corporation empowered to act upon its own initiative. Consider the case of Mr. Wind, owner of One-Hour Dura Cleaning, which served his 6 Dura Clean dry-cleaning shops in the Buffalo, New York location.

Antoni Geletucha, who operated at among them, died after breathing too much perchloroethylene, a cleaning solvent. His widow took legal action against both the store and the parent business. Wind encouraged a lower court to toss out the case on the grounds that given that One-Hour Dura and the shop were different entities, the management business was not liable.

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Every shop was recognized with a similar indication and was listed under "One-Hour Dura Cleaning" in the Buffalo phonebook. Every store gave customers "Dura" invoices and secured their clothing in plastic wrapping marked "Dura." The parent business kept the books and filed tax return for the six corporations; dealt with all repairs, workplace supervision, and clerical work; and bought all supplies, including perchloroethylene.