Owen оwns Peаk Adventures, аn оutdоor recreаtion company that offers guided hiking tours. He hired Dan as a tour guide, paying him a monthly salary and providing him with company uniforms, equipment, and a company vehicle for transporting clients. During Dan's initial training, Owen mentioned that while Peak Adventures focuses primarily on hiking, he was "generally cautious about climbing activities" and told Dan to "use good judgment about what's safe for clients." One Saturday, Dan was leading a scheduled hiking tour with a group of eight clients. After completing the planned hike, three clients asked Dan if he could take them rock climbing at a nearby cliff. Dan, an experienced climber who had previously worked as a climbing instructor, believed he could safely guide the clients. He agreed and drove them in the company vehicle to the climbing site. During the climb, Dan was demonstrating a technique when he accidentally dislodged a large rock that struck James, one of the clients below. James suffered serious injuries requiring surgery and months of rehabilitation. James has now filed a lawsuit against Peak Adventures seeking $500,000 in damages. Owen claims Peak Adventures should not be held liable because climbing was not an authorized service and Dan was negligent in dislodging the rock. Dan argues that he was acting within his role as a tour guide and was trying to provide excellent customer service consistent with Owen's instruction to "use good judgment." Additionally, Peak Adventures' website includes a page titled "Our Expert Guides" featuring Dan's profile, which mentions his "extensive outdoor recreation experience" without specifying which activities he is authorized to lead. What claims might James assert against Peak Adventures, and what is the likely outcome? Discuss all relevant issues in IRAC form.
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