Employee and Contractor Article

п»їLearning Targets

1 . What is the difference among an employee and an independent company? Independent contactor works pertaining to, and obtains payment via, an employer nevertheless whose doing work conditions and methods are not controlled by the company. An independent company is no employee nevertheless may be a realtor. Seven criteria to be a service provider include: Worker can exercise control over information on work.

Worker's occupation can be distinct as a result of employer.

Worker does not follow employer's direction and instead works with no supervision. Worker provides his own tools.

Worker is employed for a short-period of time, usually only for the duration of just one job or perhaps project. Staff member is purchased completion of the task rather than time worked. Employee performs job requiring high skills or significant schooling.

2 . How can agency associations arise?

Agency relationships come up via agreement of the celebrations, by section, by estoppel, or by operations of law. The agreement generally does not need to maintain writing neither does it require consideration. Company relationships formed for a great illegal purpose or contrary to public plan are not enforceable.

several. What responsibilities do agents and rules of sciene owe one another?

Duties of the agent:

Performance- The agent must use reasonable homework and skill in doing her or his duties or use the special abilities that the agent has showed to the main that the agent possesses. Notification- The agent is required to notify the principal coming from all matters that come to his / her attention about the subject matter from the agency. Loyalty- Agent provides a duty to do something solely pertaining to the benefit of the key and not with the intention to the agent or a third party. Obedience- Agent must follow most lawful and clearly explained instructions with the principal. Accounting- The agent has a work to make available towards the principal data of all house and cash received and paid out on behalf of the principal. Tasks of the primary:

Compensation- Besides in gratuitous agency relationship, the principal need to pay the agreed-on benefit for an agent's services. Reimbursement and indemnification- The principal must reimburse the agent for all funds disbursed at the request with the principal and for all money that the agent disburses to get necessary bills in the course of reasonable performance of his or her company duties. Cooperation- Principal need to cooperate with an helper agent in performing her or his duties. Safe working conditions- Principal need to provide safe working circumstances for a realtor.

4. What is a principal liable for the agent's activities with respect to a third party? When is the agent accountable? Principal is likely for intentional torts committed by the agent when: Functions are fully commited within the opportunity of the job (respondent superior). Principal is aware or ought to know agent features propensity for committing tortuous acts. Main allowed a realtor to engage in reckless works that brought on injury to an additional. The agent is liable if he or the girl acts away from the range of specialist or tasks of career.

5. Precisely what are some of the ways an agency interactions be ended? Agency human relationships can be terminated by act of the functions or simply by operation of law. Functions of celebrations:

Lapse of your energy

Purpose attained

Occurrence of your specific function

Mutual arrangement

Termination by simply one get together

Operations of law:

Death or madness


Changed circumstances



Lopez v. El Palmar Taxi, Inc. (pg. 600)


El Palmar Taxi, Incorporation. requires drivers to provide their own cabs that display Un Palmar's logo and pay gas maintenance, insurance charges and a fee to Un Palmar. As long as drivers stick to certain guidelines and conform to the law (i. e. licensing regulations) they can work after they want for as long as they desire. Drivers will consider for a service on their own tend to be at times dispatched by El Palmar. Mario Julaju went a cab for El Palmar within contract...