This section contains the nature of the case and procedural background.

Apex (P) entered into a security contract with Burn (D) for guarding P's plant. The contract was performed properly from February 1943 until September 8, 1946, wherein one of the guards decided to start a fire. P sued D for $20,000 from the ensuing damages. D moved to dismiss the action in that it did not charge any negligence against D in any manner or even any breach of contract. That was denied. D answered and denied that the guard's actions were within the scope of their employment. After the presentation of evidence, D moved for a directed verdict. It was granted, and P appealed.

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