The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
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Chapter 19, Problem 5BCP
Summary Introduction

Case summary: Person N is an employee of company CR under a third-party agreement with company M&M. CR did not exercise any control over N and the performance of his duties. While fulfilling a work order, N’s van collided with a car driven by person B.

To find: The liability of company CR in the above case.

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Business Case Problem with Sample Answer—Determining Employee Status. Nelson Ovalles workedas a cable installer for Cox Rhode Island Telecom,LLC, under an agreement with a third party,M&M Communications, Inc. the agreementstated that no employer-employee relationshipexisted between Cox and M&M’s technicians, includingOvalles. Ovalles was required to designate his aliation withCox on his work van, clothing, and identication badge. Coxhad minimal contact with him, however, and had limitedpower to control how he performed his duties. Cox suppliedcable wire and similar items, but the equipment was delivered to M&M, not to Ovalles. On a workday, while Ovalleswas fullling a work order, his van rear-ended a car driven byBarbara Cayer. Is Cox liable to Cayer? Explain. [Cayer v. CoxRhode Island Telecom, LLC, 85 A.3d 1140 (R.I. 2014)] (SeeAgency Law.)
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The Client: Darius Williams, 44, is a single father with three-year old twin boys, who just lost his job as a Finance Analyst. He was employed for nine (9) years with Vroom Finance, a vehicle financing company. Management decided to restructure the company to cut costs and stay competitive. As a result, Darius, along with seven (7) other employees were made redundant. On his exit from Vroom, he received a severance package that included the following: USD $45,496 in cash in accordance with the severance laws in the country Proceeds of USD $19,775 from the company pension plan. If he decides to take cash, he will be taxed 25% by the government. The other alternative is to roll the funds into a new pension plan without penalties or taxes. He now has one month to decide. Three (3) months of health insurance. There are two weeks of coverage left. Three months of life insurance, with the option to continue the plan as an individual. He now has one (1) month to decide. Although losing his…
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