Asked by Mahima Nigam on Jul 26, 2024
Verified
Roofing Issues.Sally agrees to roof a house for Bob.After doing his research,Bob chooses Sally based on her great reputation for being conscientious and doing good work.Bob knows little about roofing and stays away from all the noise involved.Sally provides her own tools for herself and other workers,sets her own schedule,and charges a flat rate of $10,000 to be paid when the job is completed.Sally hires Trudy,Glen,and Fred to help with the roofing.She pays them an hourly rate,supervises their work,provides them with tools and materials,and sets their schedules.Curious about what is going on there,Bob's friend Spencer walks by the house while the roofing is being done.Glen absentmindedly throws some old shingles off the roof and hits Spencer in the head,resulting in him going to the local emergency room and receiving a couple of stitches in his scalp.Spencer decides to sue all the roofers,Bob,and Sally for his hospital expenses and for pain and suffering.Which of the following is the most likely characterization of Trudy,Glen,and Fred in relation to Sally?
A) They are both employees and independent contractors.
B) They are employees.
C) They are independent contractors.
D) They are undisclosed principals.
E) They are both employees and disclosed principals.
Independent Contractors
Individuals or companies contracted to perform tasks or services for another entity under terms specified in a contract, not classified as employees.
Employees
Individuals who are hired to perform services for a company or another person in exchange for compensation, typically operating under a contract of employment.
Disclosed Principals
The concept in agency law where an agent's third party is aware of the identity of the principal, thus establishing contractual or legal relationships.
- Differentiate between employees and independent contractors and their implications.
Verified Answer
Learning Objectives
- Differentiate between employees and independent contractors and their implications.
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