Answer “Business Scenarios and Case Problems” 17-1 on page 512. Just analyze whe

Question

Answer “Business Scenarios and Case Problems” 17-1 on page 512. Just analyze whether Stephen is an employee or whether he is an independent contractor. (30). (26 points for analysis of the facts of the case with the criterial for employee/independent contractor; 4 points for grammar).

2. How do agency relationships arise? 3. What duties do agents and principals owe to each other? 4. When is a principal liable for the agents actions with respect to third parties? When is the agent liable? 5. What are sorme of the ways in which an agency relationship can be terminated? Business Scenarios and Case Problems 17-5 17-1 Employee versus Independent Contractor. Stephen Hem- merling was a driver for the Happy Cab Co. Hemmerling paid certain fixed expenses and abided by a variety of rules relating to the use of the cab, the hours that could be worked, and the solicitation of fares, among other things. Rates were set by the sate. Happy Cab did not withhold taxes from Hemmerlings pay While driving the cab, Hemmerling was injured in an accident and filed a claim against Happy Cab in a Nebraska state court for workers' compensation benefits Such benefits are noc available to independent constractors On what basits might the court hold that Hemmerling is an employee? Explain. (See pages 489-492.) Question with Sample Answer Formation o an Agency. Paul Gett is a well-known, wealthy financial expert living in the city of Toms. Adam Wade, Gett's fnend tells Timothy Brown that he is Geti's agent for the purchase of rare coins. Wade even shows Brown a local newspaper clipping mentioning Gett's interest in coin collecring 17-2

Explanation / Answer

Stephen is an independent contractor of the Happy Cab Co. The reason behind this are as follows:

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