A regional CPA firm has 10 office locations in the New England area. The offices require regular maintenance to maintain a neat and professional appearance. During the past 5 years the CPA firm has used only Mr. Wright to perform the required maintenance. Mr. Wright is self employed and is paid on an hourly basis based upon invoices submitted to the CPA firm. Mr. Wright maintains a business office at his home and uses only his own tools while working and spends approximately 50% of his time working at the various CPA office locations.

Recently, Mr. Wright was demolishing an old building using dynamite to make way for a new building at one of the CPA office locations. During the blasting activity an unrelated 3^rd Party was severely injured. The 3^rd Party sued both the CPA firm and Mr. Wright for monetary damages under the Law of Agency. The CPA firm raised the defense that Mr. Wright was an Independent Contractor.

Required:

1. Explain in detail what the court will consider in making their decision on the CPA firms defense.
2. Will the CPA firm be held liable?
3. Will Mr. Wright be held liable?

Big Bank loaned $100,000 to ABC Corporation. Arthur Apple signed an agreement with Big Bank to act as guarantor for the ABC Corporation loan. Patty Pear signed an agreement with Big Bank to act as surety for the ABC Corporation loan. After a period of one year, ABC Corporation was unable to make the scheduled payment to Big Bank and defaulted on the loan.

Required: Explain, in detail, how Big Bank should proceed to collect on the loan against:

1. Arthur Apple
2. Patty Pear
3. What rights do Arthur Apple and Patty Pear have if they are required to pay Big Bank ?