Assignment 1 Leshondra Davis Scott Levasseur Leg 100 Business Law I October 15, 2014

Situation 1: Due to the nature of the situation I would advise our leadership to seek an alternative dispute resolution through mediation. Mediation is defined as the process where “the parties agree to try to reach a solution with the assistance of a neutral third party (mediator) who helps them find a mutually satisfactory resolution.” (Managers and the Legal Environment, p.68). Mediation is less hostile and more private than litigation. Eliminating the need for lawyers, judges, and court dates, mediation has proven to be less time consuming and more cost effective than litigation. Also, with the process of litigation, the company would be required to file public documents that may contain sensitive or confidential information that can be leaked through the media. Being that this is a premises liability claim, the complainant would have to prove fault on the stores behalf. “To legally be held responsible for the injuries someone suffered from slipping or tripping and falling on someone else’s property the owner/possessor of a store, restaurant, or other business (or an employee of the business): A) Must have caused the spill, worn or torn spot, or other slippery or dangerous surface or item to be underfoot; B) Must have known of the dangerous surface but did nothing about it; or C) Should have known of the dangerous surface because a “reasonable” person taking care of the property would have discovered and removed or repaired it” (Slip and Fall Accidents Overview, Thomas Reuters 2014).
The fact that she is the anchorwoman for NewsNow, is more than enough reason to settle this matter as expeditiously and quietly as possible. As we prepare to move forward with the mediation process, I would take into consideration all aspects of the alleged accident. The placement of the mat, condition of said banana, circumstances surrounding how the banana ended up on the floor, video evidence of how many, if any, employees walked by and saw the banana on the floor, video evidence of the fall, and her ability to walk in 5 inch heels would all be key defining factors and topics of discussion during the initial joint sessions. I am confident that after reviewing the evidence, (video of the “accident” and eye witness accounts of what happened) we would be able to reach an agreement beneficial to both parties for this case during the closing and formalizing of the settlement, which would include total confidentiality and a non-disclosure agreement.
Situation 2:
There are several determining factors essential to labeling an individual as an independent contractor or an employee. The IRS defines an independent contractor as an individual business owner or contractor who provides services to other businesses. The website goes on to further state that, “the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done,”(irs.gov, October 20014). An employer has control over their employees conduct, what jobs will be done and how they will be done. Even when the employees have freedom of action, they are still considered employees instead of independent contractors.
It is stated in Managers and the Legal Environment that courts and regulatory agencies frequently look at a variety of factors, including: 1. How much control the employer exercise over the details of the work? 2. Is the employed person engaged in an occupation distinct from that of the employer? 3. Is the kind of work being done usually performed under the direction of an employer or by a specialist without supervision? 4. What degree of skill does the work require? 5. Does the employer provide the worker with tools and a place to work? 6. For how long is the worker employed? 7. Is the worker paid on the basis of time or by the job? 8. Does the worker offer his or her services to the public at large?
(Managers and the Legal Environment, p. 130)
In determining whether or not Ms. Greene was an employee or independent contractor hired by Good Grocers, Inc. I used the three categories of control and independence found under the “Common Law Rules” section on the IRS website. The categories are behavioral, financial, and type of relationship.
The permanency of the relationship proves that there was an intent to create an employer-employee relationship. The IRS website states that, “if you hire a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship”(irs.gov, October 2014). It is factual that Ms. Greene comes in on a regular basis for an ongoing period of time. She was also treated as a part time employee when they decided to call her in to work when they were short staffed. It is also stated that if a worker provides services that are key to the business that business would be more likely to direct and control the employee’s activities. Ms. Greene cakes are a service she provides that is passed off as the work of Good Grocers, Inc. Her work is a key aspect of their bakery department and they have the right to direct and control activities.
Based on the type of relationship Ms. Greene has with Good Grocers, Inc. I have determined that she is in fact an employee instead of an independent contractor. Ms. Greene should receive all part time employee benefits and discounts based on her employment with Good Grocers Inc.
References:
“Independent Contractor, (Self-employed) or Employee?” www.irs.gov, October 2014
“Distinguishing Between Employees & Independent Contractors” Managers and the Legal Environment, p. 130-131.
“Mediation”, Managers and the Legal Environment, p. 68-69.
“Slip and Fall Accidents Overview”, http://injury.findlaw.com/torts-and-personal-injuries/slip-and-fall-accidents-overview.html, Thomas Reuters 2014.
“The AAA and Mediation”, www.adr.org/aaa/faces/services/disputeresolutionsercices/mediation, The American Arbitration Association 2014.