BUSINESS LAW – Spotlight on Agency—Independent Contractors. Frank Frausto delivered newspapers

Spotlight on Agency—Independent Contractors. Frank Frausto delivered newspapers for Phoenix Newspapers, Inc., under a renewable six-month contract called a “Delivery Agent Agreement.” The agreement identified Frausto as an independent contractor. Phoenix collected payments from customers and took complaints about delivery. Frausto was assigned the route for his deliveries and was required to deliver the papers within a certain time period each day. Frausto used his own vehicle to deliver the papers and had to provide proof of insurance to Phoenix. Phoenix provided him with health and disability insurance but did not withhold taxes from his weekly income. One morning while delivering papers, Frausto collided with a motorcycle ridden by William Santiago. Santiago filed a negligence action against Frausto and Phoenix. Phoenix argued that it should not be liable because Frausto was an independent contractor. What factors should the court consider in making its ruling?

 

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