Agency Relationships Liability of Principals and Independen

Agency Relationships — Liability of Principals and Independent Contractors

Cora and Caley, CARDWARE’s co-office managers have determined that CARDWARE Inc. is growing so rapidly that they need to hire a part-time advertising manager to market CARDWARE’s latest business, “Designer Car Seat Covers.” Camille has recommended Nicole Marriott to fill the position. Nicole has freelanced with several big agencies and brings with her a wealth of knowledge, integrated advertising software, and a host of media contacts to further the interests of CARDWARE. CARDWARE provides Nicole with an office and use of its telephones and equipment, such as copy machine, fax machine, and computer, although Nicole may use her own computer if she wishes.

While visiting with Z-1, a leading car manufacturer, in an attempt to secure its business, Nicole recognized a former colleague Raquel Dean whom she knew to be sly with business tactics in stealing ideas. Raquel walked by Nicole and accidentally bumped into her causing Nicole to drop a pile of papers with diagrams and profit graphs from Designer Car Seat Covers. Nicole, thinking that Raquel was trying to take her ideas, doubled up her fist and punched Raquel in the face knocking out her two front teeth and bruising her left eye. Raquel filed suit against CARDWARE based on battery.

Determine the following:

Whether or not Nicole is an independent contractor.

Discuss whether or not CARDWARE Inc. would be liable for Nicole’s torts/criminal acts if she is considered to be an independent contractor. Be sure to note the difference in outcome if she is determined to be an employee.

Solution

Facts of the case :

Name of the company : CARDWARE’s

Business is growing

Co-office managers have determined : Need to hire a part-time advertising manager to market CARDWARE’s latest business, “Designer Car Seat Covers.”

Camille has recommended Nicole Marriott to fill the position.

Nicole has freelanced with several big agencies and brings with her a wealth of knowledge, integrated advertising software, and a host of media contacts to further the interests of CARDWARE.

CARDWARE provides Nicole with an office and use of its telephones and equipment, such as copy machine, fax machine, and computer,

Although Nicole may use her own computer if she wishes.

While visiting with Z-1, a leading car manufacturer, in an attempt to secure its business, Nicole recognized a former colleague Raquel Dean

Whom she knew to be sly with business tactics in stealing ideas.

Raquel walked by Nicole and accidentally bumped into her causing Nicole to drop a pile of papers with diagrams and profit graphs from Designer Car Seat Covers.

Nicole, thinking that Raquel was trying to take her ideas, doubled up her fist and punched Raquel in the face knocking out her two front teeth and bruising her left eye. Raquel filed suit against CARDWARE based on battery.

Analysis :

Whether or not Nicole is an independent contractor ?

Yes Nicole is independent contractor .She has taken a project on her name from CARDWARE’s .Nicole handles a project independently , she is very much focused about work.She clearly knows the tactics & business strategy in which she is working.

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Discuss whether or not CARDWARE Inc. would be liable for Nicole’s torts/criminal acts if she is considered to be an independent contractor. Be sure to note the difference in outcome if she is determined to be an employee.

Answer :CARDWARE Inc will not liable for Nicole action.Its being clearly mentioned in questions its third part work.This promotion is handed over to external part.So what ever the actions performed by Nicole company cannot be libbale for their action which is not under their control.

But here the company can make a restriction , define a work scope , & intimate their standards to Nicole , that company can take care.

Its not question whether he is employee or any body else the point here is when a specific work has been allocated as a third party only company can inspect their work but can not control their operations.