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IRAC Analysis Joe and his buddy sam had always been talking about going into business together so they decided to try out a landscaping business,

IRAC Analysis

Joe and his buddy sam had always been talking about going into business together so they decided to try out a landscaping business, joe said he would contribute his old pickup truck for the business and sam said that he would throw in a trailer that he had and that he would advance some n=money to buy the landscaping equipment so they agreed to go forward Joe reserved the trade name friends landscaping w the ohio secretary of state and joe opened a bank account in the company name using joes ss number joe was the only signatory on the account. The plan was that joe would do the work and he would hire and supervise employees to help with the work if necessary and sam would be on the road selling the jobs and attending to customer service in exchange sam would receive and be entitled to 50% of the gross revenue from all the customers that sam found and serviced. Sam agreed toa advance money to pay 50% of the cost for the company garage when Joe could not pay for the company receipts so it turned out one day Joe was cutting the lawn of a customer and he negligently smashed his tractor into the customers house causing several thousands of dollars of damages. The homeowner sued Joe, Sam, and friends landscaping. Is Sam liable to the homeowner for the damages caused by Joe's negligence.

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