Frank Frausto delivered newspapers under a renew-able six- month contract called a Delivery Agent Agreement. The agreement
Question:
Frank Frausto delivered newspapers under a renew-able six- month contract called a “Delivery Agent Agreement.” The agreement identified Frausto as an independent contractor. The company collected payment from customers and took complaints about delivery. Frausto was given the route for his paper delivery and was required to deliver the paper within a certain time period each day. Frausto delivered the papers using his own vehicle and had to provide proof of insurance to the company. The company provided health and disability insurance but did not withhold taxes from Frausto’s weekly income. One morning, Frausto was delivering papers and collided with Santiago on his motor-cycle. Santiago filed a negligence action against Frausto and the newspaper company. The newspaper company argued that it should not be liable because Frausto was an independent contractor. What was the result? Why?
Step by Step Answer:
Business Law Text and Cases
ISBN: 978-1285185248
13th edition
Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross