Arguello (P) and others on three different incidents patronized a Conoco gas station. P tried to pay for the items with a credit card and was asked for I.D. P was told an out of state driver’s license was not acceptable. P disagreed with the clerk, and the clerk eventually began to insult P with profanity and racial insults. The clerk also knocked a six-pack off the counter towards P. P left the store and called Conoco’s management and had to get the clerk’s name. When another P attempted to go back into the store, the clerk and another employee locked the doors. Management reviewed the store tape which had no audio and determined that the clerk had acted improperly. The clerk admitted the profanity and was merely counseled by Connoco. Other plaintiffs met with similar type disdain at other stores when they were told “we don’t have to serve you people” and “ you people are always acting like this.” That employee refused to serve them until the police were called and they ordered the employee to serve them. Other incidents were of a similar nature. In March 1997, Ps sued under 42 USC 1981 and 2000a for D’s failure to serve Hispanic and African-American customers. The district court dismissed some of the claims on disparate impact and eventually granted summary judgment to D on all the remaining claims. Ps appealed; the district court erred when it found no agency relationship between D and its Conoco-branded stores, and it erred when it held that the clerk acted outside the scope of her employment.