Business Law Final

Front 1

Principal

Back 1

In agency law, a person who agrees to have another, called the agent, act on his or her behalf.

Front 2

Agents

Back 2

A person who agrees to represent or act for another, called the principal.

Front 3

Independent Contractor

Back 3

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. This person is not an employee but may be an agent.

Front 4

Employee

Back 4

A person who works for an employer for a salary or for wages.

Front 5

Receiver

Back 5

In a corporate dissolution, a court-appointed person who winds up corporate affairs and liquidates corporate assets.

Front 6

Dodge vs. Ford

Back 6

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Front 7

Control Test

Back 7

The control test may be used to establish whether a person is an employee or independent contractor. The criteria that is considered includes the following:
(1) How much control can the employer exercise over the details of the work?
(2) Is the worker engaged in an occupation or business distinct from that of the employer?
(3) Is the work usually done under the employer’s direction or by a specialist without supervision?
(4) Does the worker supply the tools at the place of work?
(5) For how long is the person employed?
(6) What is the method of payment?
(7) What degree of skill is required for the work?
(8) Note: The government presumes that an individual performing services for a hiring party is an employee and not an independent contractor. The reasons for this are twofold, (1) employers collect employment taxes, (2) employers have strong legal responsibilities to employees such as to provide a safe working environment, carry workers compensation insurance, etc.