QUESTION FOUR

There has been a copious amount of criminal activity in the area which has in turn created panic for many shop owners. Jackson has decided that he needs to insure his business premises immediately.

4.1 Advise Jackson as to the various types of insurance which are available, and which type of insurance would be most suited to his needs. (5 Marks)

Jackson approaches an insurance company to indemnify his business. The insurance company requests that Jackson declare that he has all certification regarding the installation of gas cylinders, stoves and all electrical equipment in his shop. Jackson knows that he has not contracted certified gas installers, and has rather cut costs by doing the installation himself. He nonetheless states that he is in possession of the certificates.

4.2 You are required to evaluate the above scenario and discuss Jacksons actions in terms of the legal duties and implications which an insured bears upon taking out insurance. You are also required to cite the applicable case law. (15 Marks)

QUESTION FIVE

Selena works at Jackson s coffee shop as a singer. She performs every day from 5 pm until 7 pm. Selena also received a uniform with Jacksons shop information to wear during her performance. Selena was given a contract from Jackson for a period of 2 years, and she is often invited to join staff parties and social events which are hosted by Jackson. Selena submits invoices and charges VAT as she belongs to a closed corporation which has two (2) other people in it.

5.1 You are required to list the differences between an employee and an independent contractor. (6 Marks)

5.2 Based on the set of facts above determine as to whether Selena is an employee or an independent contractor. Justify your answer fully. You are required to cite the applicable case law.