Agency &Partnership Flashcards
Factors used to determine whether an agent is an employee or independent contractor:
(1) the extent of control the principal may exercise over the details of the work; (2) if the agent is engaged in a distinct occupation or business; (3) the type of work; (4) how the agent is paid (hourly or per project); (5) who supplied the equipment or tools; (6) the degree of supervision; (7) the degree of skill required; (8) whether the job was part of the principal’s regular business; (9) the length of time the agent is engaged by the principal; (10) whether the principal and the agent believe that they are creating an employment relationship; and (11) whether the person was hired for a business purpose.
Factors to determine if conduct is within the scope of employment include whether:
(i) it’s the kind the employee is employed to perform; (ii) it occurs substantially within the authorized time and space limits; and (iii) it is motivated (in whole or part) by a purpose to serve the employer. Additionally, conduct is within the scope of employment if it’s of the same general nature (or incidental) as the conduct authorized. Conduct is NOT outside the scope of employment merely because an employee disregards the employer’s instructions.
