Cold Case Trucking Essay

833 words - 4 pages

LAW421 Week 4
Individual Assignment - Crusoe and Cold Case Trucking

Individual Assignment - Crusoe and Cold Case Trucking
1. What is Crusoe's agent classification? What factors should CCT analyze in making this determination?

Crusoe’s agent classification is an “independent contractor”. CCT provides only direction for the completion of tasks and does not provide a direct supervisory role of Crusoe. The IRS three-prong test would be the primary way this classification is made. The three components of the test include Behavioral, Financial, and Work Relationship. In regards to behavioral, Crusoe maintains independent freedom on how to perform project tasks. ...view middle of the document...

An employer is responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

4. Suppose that Crusoe learns several important CCT trade secrets in the course of his agency and sells the information to a CCT competitor for $500,000. Which fiduciary duty has Crusoe breached? Explain your analysis. What are CCT's potential remedies against Crusoe?

As an agent, Crusoe has specific fiduciary duties that were violated. In this case, Crusoe violated the duties of loyalty and disclosure with CCT. Selling information to a competitor is obviously damaging to CCT’s business with violates the fiduciary duty of loyalty. Furthermore, Crusoe should be disclosing anything that can materially impact the agent relationship. Potential remedies for this include a termination of the contract with Crusoe and a disgorgement of the profits gained for the $500,000 sale of trade secrets.

5. Assume that part of Crusoe's agreement with CCT allowed Crusoe to use CCT's account at a local office supply store. 0ver a period of three months, Crusoe would order any office machinery or supplies he needed for his work directly from the store. The store billed CCT directly and was paid (along with any other charges by authorized CCT employees) within 30 days of receiving the bill. Suppose that a dispute arises between CCT and Crusoe about the quality of Crusoe's work and CCT terminates the consulting...

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