Shane ran a liquid fertilizer business. As part of the operation of the business

Question

Shane ran a liquid fertilizer business. As part of the operation of the business, Shane paid Svoboda a specified amount per acre to spread the fertilizer on his client's crops. Svoboda's per acre payments remained steady, despite Shane's profits or losses. Frisch was injured while filling a tank truck that was supposed to haul the fertilizer to Svoboda's tractor. Frisch sued both Shane and Svoboda, claiming that Svoboda was sharing in Shane's profits and was therefore a partner. Was Frisch correct? Explain 1/2 page

Explanation / Answer

Hi,

Please find the answer as follows:

No, Frisch was not correct as there was no evidence as to the existence of a joint venture between Shane and Svoboda. Further, there is no evidence that Svoboda is an employee of Shane. A joint ventures exists when the parties have a common interest and equal say in the performance of the business activities and the control of the agencies used. As it is clear, that there is no mutual interest, it can be concluded that Svoboda has no right to share profits with Shane and cannot be considered as a partner.

Thanks.

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