Questions on business law
Course:- Business Law and Ethics
Reference No.:- EM13357

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1. Fred is an electrician. John is a builder who builds a large number of houses each year. John hires Fred to do the wiring of all of his houses. Fred has no time to work for anyone else but John. Is Fred an employee or an independent contractor?

2. If Fred is driving from one of John's houses to another one to do some wiring and he runs over a small child, would John be liable for Fred's actions?

3. Phillip hired Ace to collect a debt from Scott. He told Ace, "I'll leave the methods to you, but make sure you get the money." As it turns out, Ace is a violent person with a history of serious fights. Phillip could have discovered this but failed to check on Ace's background. When trying to collect the debt, Ace beat up Scott and injured him. Scott sued Phillip for damages. What result is likely and why?

4. Sally is an attorney negotiating to purchase a large tract of land for V-Mart. V-Mart is an undisclosed principal in this case. If the seller of the land breaches the contract, can Sally sue them?

5. Margaux and Sabrina were the best of personal friends and met for drinks at the local pub after work. Margaux is a CPA and partner in the M and M CPA firm, and Sabrina works there as a receptionist and is not a CPA. While at the pub, they met Spenser, and Sabrina told Spenser that she could prepare his taxes as a CPA. Margaux winks in acknowledgement of the conversation. Subsequently, Sabrina poorly prepares Spenser's taxes. Spenser now wants to sue M and M CPAs for malpractice. Who is liable?

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