On page 406 of the text, read the case entitled Coker v. Pershad. The Appellate Division of the Superior Court of New Jersey reasons that AAA had no control over the independent contractor's work and thus Pershad was an employee of Five Star, but Five Star (and by extension, Pershad) were independent contractors to AAA. This type of arrangement is not uncommon. Neither are situations where trucking companies (among others) employ individuals who are designated as independent contractors but are trained by the company and have a manual of regulations provided to them which, in essence, controls where they drive, how they drive, how long are the drivers' work breaks, and who can ride in the cab of the truck. Additionally, drivers often wear a company uniform. The artifice of calling someone an independent contractor when the driver actually is not, is no more than an effort to avoid liability for the person's actions on the job and certain regulatory (unemployment insurance; workers compensation, etc.) and tax considerations. Consequently, the situations must be carefully examined on a case-by-case basis to discern the actual status of the individual. Do you agree with the courts reasoning? Why?

Coker v. Pershad Superior Court of New Jersey, Appellate Division, 2013 WL 1296271 (2013). FACTS AAA North Jersey, Inc., contracted with Five Star Auto Service to perform towing and auto repair services for AAA REASON "One who hires an independent contractor has n (formerly the American Automobile Association). One night, right of control over the manner in which the work is to be Terence Pershad, a Five Star tow truck driver, responded to an done." AAA did not control Five Star's work-AAA assigned AAA call for assistance by the driver of a car involved in an work to Five Star, and Five Star completed it without AAA's accident in Hoboken, New Jersey. While at the scene, Pershad supervision. Their agreement stated that Five Star was an inde pendent contractor. Five Star bought its own trucks and other got into a fight with Nicholas Coker, a passenger in the dis- equipment, and it chose which employees to send on towing abled car. Pershad assaulted Coker with a knife. eli calls and which trucks and equipment the employees would Coker filed a suit in a New Jersey state court against Per- use. Five Star also hired and fired its own employees. shad, Five Star, and AAA. The court determined that Pershad Additionally, Five Star had provided towing services for was Five Star's employee and that Five Star was an indepen AAA for about eight years, and there was no indication that dent contractor, not AAA's employee. Thus, AAA was "not Five Star lacked the skills to provide those services. Five Star responsible for the alleged negligence of its independent con- also performed auto repair services for customers other than tractor, defendant Five Star, in hiring Mr. Pershad." Five Star AAA, and AAA was not solely in the towing business. Providing entered into a settlement with Coker. Coker appealed the ruling towing and other roadside assistance was part of AAA's regular in AAA's favor. business, but the automobile club provided a variety of services sodasbay snob allover how erdel to its members, and contracted with many businesses-such ISSUE Did Five Star work as an independent contractor free as gas stations, motels, and others-to provide those services. of AAA's control? FOR CRITICAL ANALYSIS-Legal Environment Consideration Under the contract with AAA, Five Star was required to be DECISION Yes. A state intermediate appellate court affirmed available to service AAA members. Does this support Coker's the lower court's ruling. AAA could not be held liable for the argument that Five Star was AAA's employee? Why or why actions of Five Star, its independent contractor, under the cir- not? dron you to com forte cumstances of this case.bonog