Stars in His Eyes

Under normal circumstances, Madison Avenue would love Augustine Gizzi, a New Jersey truck driver and a true believer in advertising slogans. Trouble is, Gizzi not only believes, he goes out and acts on his beliefs. As a result, he has cast a legal pall over scores of sloganeers ranging from Avis ("We try harder") to Westinghouse ("You can be sure if . . .").

Gizzi had no qualms when he bought a supposedly overhauled 1958 Volkswagen van from Russell Hinman, who operates a Texaco service station in Westville, NJ. Though Hinman made the $400 sale on his own as an individual, Gizzi claimed that Texaco's advertising led him to believe that it stood behind the sale. Besides, Hinman seemed to be the paradigm of skill that Texaco proudly refers to in its slogan, "Trust your car to the man who wears the Texaco star."

Soon after Gizzi trustingly drove away, though, he discovered a flaw in his newly purchased van: the brakes failed. Gizzi hit the rear end of a trailer truck, seriously injuring himself and a passenger. When he recovered, Gizzi turned his old faith into a claim of liability. Instead of suing Hinman, the obvious target, Gizzi went after Texaco on the ground that it had clothed Hinman with "apparent authority." As he saw it, Texaco's promotional slogan suggests that its various dealers are skilled mechanics. The company, he claimed, was thus liable for Hinman's defective repairs and Gizzi's injuries.

A lower court threw out Gizzi's claim. But the U.S. Court of Appeals for the Third Circuit has just reversed the decision and ordered a jury trial to decide the facts. If Gizzi eventually collects from Texaco, the company may have to hire more skillful dealers--or revamp its advertising.

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