MEE Agency

Question 1

Independent Contractor Status

Answer 1

The primary factor in determining whether an individual is an employee or independent contractor is whether the principal has a right to control the method and manner of the individual’s work

Question 2

Actual Authority

Answer 2

Is authority that the agent reasonably believes he has based on their dealings with the principal

Question 3

Apparent Authority

Answer 3

Is authority that a third party reasonably believes the agent has based on the principal’s holding out the agent as having such authority

Question 4

Estoppel for Independent contractor liability

Answer 4

Ordinarily a principal is not liable for an independent contractor’s torts. However, estoppel can be raised when the principal creates the appearance that an employer-employee relationship exists, and a third party relies on that relationship