From our private database of 35,400+ case briefs...
Morris Oil Co. v. Rainbow Oilfield Trucking, Inc.
New Mexico Court of Appeals
741 P.2d 840 (1987)
Rainbow Oilfield Trucking, Inc. (Rainbow) (defendant) and Dawn Enterprises, Inc. (Dawn) (defendant) entered into a series of agreements through which Dawn acquired full control over Rainbow’s operations. Dawn agreed to collect all monies owed to Rainbow, keep a percentage, and return the rest to Rainbow. They further agreed that Rainbow would not function as Dawn’s agent, and that Rainbow was not authorized to incur debt in Dawn’s name outside the ordinary course of business. In the course of its operations, Rainbow agreed to purchase diesel fuel from Morris Oil Company (Morris) (plaintiff). Rainbow did not disclose its relationship with Dawn to Morris. Rainbow’s business then failed and it declared bankruptcy, still owing Morris $25,000. At that time Dawn still held $73,000 which it had collected from Rainbow’s operations. When Morris discovered Dawn’s involvement, Dawn assured Morris that it would pay the debt but later declined to do so. Morris sued Rainbow and Dawn to collect the debt. The trial court found against both defendants, holding that Dawn was vicariously liable because Rainbow acted as Dawn’s agent. Dawn appealed.
Rule of Law
Holding and Reasoning (Garcia, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 618,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 618,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 35,400 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.