Sandra Mahfood is one of 15 Grace distributors in the island. She has contracted with Kerry Foods to supply its chain of supermarkets with various Grace items. Ms. Mahfood’s contract, which is renewed annually, states: "You will be providing Kerry Foods with your services, as and when they are required, during the term of the contract". Ms. Mahfood operates on her own time and is paid a salary of $10,000.00 plus travel expenses. She is responsible to pay for her own statutory taxes and is not covered for damage to her health or damage she might sustain or cause while providing the service to Kerry Foods. While supplying one of the supermarkets in Mainland, Ms. Mahfood failed to stop at a stop sign in the parking lot and hit a pedestrian. This resulted in the pedestrian sustaining injuries. A. Identify the type of Contract between Sandra Mahfood and Kerry Foods. B. Distinguish between Contract of Services and Contract for Services. C. State whether the pedestrian can sue Kerry Foods for the action of Ms. Mahfood (provide reasons for your answer)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 6E
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Sandra Mahfood is one of 15 Grace distributors in the island. She has contracted with Kerry Foods
to supply its chain of supermarkets with various Grace items.
Ms. Mahfood’s contract, which is renewed annually, states: "You will be providing Kerry Foods
with your services, as and when they are required, during the term of the contract". Ms. Mahfood
operates on her own time and is paid a salary of $10,000.00 plus travel expenses. She is responsible
to pay for her own statutory taxes and is not covered for damage to her health or damage she might
sustain or cause while providing the service to Kerry Foods.
While supplying one of the supermarkets in Mainland, Ms. Mahfood failed to stop at a stop sign
in the parking lot and hit a pedestrian. This resulted in the pedestrian sustaining injuries.
A. Identify the type of Contract between Sandra Mahfood and Kerry Foods. 
B. Distinguish between Contract of Services and Contract for Services. 
C. State whether the pedestrian can sue Kerry Foods for the action of Ms. Mahfood
(provide reasons for your answer) 
D. Explain FIVE (5) terms that would be expressed in a Contract of Employment. 

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