Hauser

Appellants Hauser and Acosta invested in a business venture with two stockbrokers at Rauscher, Pierce, a securities brokerage firm. The venture failed. The appellants sued the stockbrokers and the firm, and obtained a judgment against the stockbrokers based on fraud. The appellants proposed several theories of vicarious liability to hold the brokerage firm liable, but the district court granted summary judgment in favor of the firm on the ground that the business venture was outside Rauscher, Pierce’s control. We affirm.

I. Facts.

The undisputed facts establish the following. The stockbrokers, John Farrell and Alvin Harvey, worked for Rauscher, Pierce between October 1986 and November 1987. They sold the appellants interests in a part *1340 nership, intended to be incorporated, called New Technologies in Energy (NTE), which was promoted as a provider of energy efficient lighting to hotels and casinos. Some of the conversations in which the stockbrokers promoted the business to the customers, and the exchange of the customers’ money for the agreements to sell them interests in NTE, took place at Rauscher, Pierce. NTE was not a Rauscher, Pierce promotion. The two stockbrokers…