Scenario 1: Jerry owned Jerry’s Trailer Sales and Repair, Inc., a company that sold and repaired various types of cargo trailers. A large part of the…

Scenario 1:

Jerry owned Jerry’s Trailer Sales and Repair, Inc., a company that sold and repaired various types of cargo trailers. A large part of the repair work was tire replacement. Connor, Jerry’s grandson, worked as an employee for Jerry’s Trailer Inc. while he was in high school, primarily replacing tires. After graduating from college, Connor started his own business called Connor’s Tires. Connor was a wholesale tire business who sold directly to businesses, including Jerry’s Trailer, Inc. Fourteen years after Connor started his business, Jerry offered him work with Jerry’s Trailer, Inc. On his 

first day of work, Jerry told Connor to load certain tires on the trailer but did not tell him how to do it. Would Connor be considered an employee or an independent contractor? Explain your answer applying the law you learned and include any case law reference.

Scenario 2:

Penny was the president and chief executive officer of Penny’s Petunias, a large company that sold petunia plants worldwide. Kevin was Penny’s personal assistant. Kevin took care of all of Penny’s personal and business needs including reviewing and approving all expenditures for the business. In addition, Penny asked that Kevin review all bank and credit-card statements and only bring any problems to Penny’s attention. After working for Penny for five years, Kevin started taking unauthorized cash advances using Penny’s business bank card with First National Bank and charged $16,435 in unauthorized expenditures for Kevin’s personal use on the same card. These charges and advances took place during a four-year period. The charges and advances appeared on at least 37 monthly statements. When Penny discovered Kevin’s fraud, she fired Kevin and closed her account with First National Bank. Who is liable for the charges? Explain your answer applying the law you learned and include any case law reference.

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