Cargill loaned money to elevator operator Warren Grain and Seed Co., which operated a grain elevator. Cargill
subsequently took more and more control and loaned more money to Warren as its financial condition deteriorated.
Eventually, Warren went bankrupt, causing many farmers to lose money owed them by Warren. The farmers sued
Cargill, claiming Warren was its agent. Farmers won case because Restatement (Second) of Agency § 14 O (1958)
says that a security holder who takes over the management of the debtor’s business either in person or through an
agent, and directs what contracts may or may not be made, becomes a principal, liable as a principal for the obligations
incurred thereafter in the normal course of business by the debtor who has now become his principal agent. Cargill
exercised too much control over the business to deny the relationship was more than a normal debtor-creditor situation.