Dashboard X Case Study 4 X Mail - Haley K - Outlook x 1+ structure.com/courses/1493743/assignments/7498462 3130-03Z > Assignments > Case Study 4 Case Study 4 + Start Assignment Due Sunday by 11:59pm Points 100 Submitting a text entry box or a file upload File Types doc, docx, and pdf Available until Mar 17 at 11:59pm Read Case 10.3 Toms v. Links Sport Management and answer questions 1-3 posed at the end of the case prompt. Support your answers thoroughly and cite any sources you use. **If case 10.3 in your text is not Toms v Links complete case 10.1 instead** Previous Next > Q Search ASUS VivoBook f11 Pgup f12Pgdn prt sc delete F7 f9 home floend backspace % 5 8 9 4 E RCASE 10.1 Avanti Press v. Employment Department Tax Section, 274 P.3d 190 (Or. Ct. App. 2012) FACT SUMMARY Waiau was an employee of One Coast, a company that represented various During the relevant time, Waiau maintained a businesses, including Avanti. In early 2009, One home office with a desk, chair, fax machine, scan- Coast dissolved. Waiau, who had nearly 30 years ner, printer, telephone, computer, travel case, and of experience as a product sales representative in sample bags. She used the office equipment almost the greeting card and gift industries, then entered exclusively for business and deducted home office into a written Service Agreement (Agreement) expenses on her personal income tax return. She also with Avanti to sell the company's greeting cards, used her personal vehicle for business travel. Avanti journals, and calendars. The Agreement provided, did not reimburse Waiau for postage, travel, meals, among other things, that or lodging expenses. Waiau set her own work sched- ule and decided how frequently to visit customers. Waiau would be Avanti's exclusive sales rep- Her commissions were based entirely on her sales, resentative for retail outlets in southwestern and not on the number of hours that she worked. Oregon and would personally visit Avanti However, Waiau did not register a business customers at their retail outlets at least once name, nor did she carry liability insurance or per- every 12 weeks for purposes of soliciting formance bonds, and she did not advertise or market orders in accordance with the services Agree- her services as a product sales representative. Dur- ment and Avanti's policies, catalogs, supple- ing that period, she passed out business cards that stated, "Andrea Waiau, Avanti Greeting Cards." ments, and price information furnished to After Waiau sought unemployment insurance Waiau by Avanti. benefits claiming that she was an employee rather Waiau had no authority to bind Avanti to any than an independent contractor, the state's labor sales and had no authority to accept orders or agency determined that Waiau was, in fact, an receive payments on Avanti's behalf. employee of Avanti, thereby making Avanti liable Avanti reserved the right to establish and change for unemployment taxes. An administrative law prices, products, ways, methods, or terms of judge (ALJ) ruled that Waiau was an employee, and payment or shipment and any other conditions Avanti appealed. or terms of sale. SYNOPSIS OF DECISION AND OPINION The Waiau had the authority to hire, fire, and train Oregon Court of Appeals reversed the findings of her own sales associates. Waiau would pay all the ALJ and ruled in favor of Avanti. The court rea- employee taxes and all her own expenses. soned that Avanti did not have a sufficient amount of direction and control over Waiau and that she In exchange for her services, Avanti would pay should be classified as an independent contractor. Waiau a commission based on a percentage of the The court concluded that Waiau controlled when product invoice price less cash discounts, taxes, and how often she worked. Specifically, the court shipping, insurance, and other deductions. The pointed to the fact that Waiau set her own schedule Agreement would automatically renew for one-year and that Waiau could decide how frequently to visit terms, unless earlier terminated by 30 days' written customers. The court also found that Waiau worked (continued) notice from either party. 331 CHAPTER TEN | Agencystrictly as a commissioned salesperson and worked directly to Avanti as an independent contractor. The as frequently or infrequently as she liked and that terms of that agreement and the parties' conduct a commission sales representative who works on a are consistent with their express understanding that part-time basis, selling only at her convenience or Waiau would be working as an independent contrac- when the opportunity presents itself, is typically an tor, not an employee subject to the company's direc- independent contractor. They rejected the assertion tion and control." that managerial control existed because the com- pany expected her to make a certain amount of sales Case Questions per month because such an expectation has to do 1. If Waiau had been paid a salary in addition to her solely with end results rather than with method. commission, how might that impact the court's analysis? WORDS OF THE COURT: Direction and Control "Waiau had her own home office and vehicle; set 2. Although the Agreement did not prohibit Waiau her own hours and visited customers as frequently or from working for another company, as a practi- infrequently as she desired; was compensated solely cal matter she was working full time for Avanti. based on commission; communicated with Avanti Shouldn't that be a factor in the court's analysis? concerning only the results of her efforts; and could Why or why not? simultaneously perform the same services for other 3. Focus on Critical Thinking: Is there a danger that greeting card companies. Those facts, too, must be employers will opt to create independent con- considered in the context of the agreement itself. tractor positions rather than employee positions As noted, Waiau had been performing the same in order to avoid liability and taxes? Is it ethi- services for Avanti while she was employed by cal to generate revenue based on the efforts of a another company, One Coast; after One Coast dis- sales representative, but not provide them with solved, Waiau and Avanti entered into an agreement benefits available to employees such as managers by which she agreed to provide the same services and clerical workers? California