Employer vs Independent Contractor - Agency Law

The video explains the differences between employees and independent contractors, focusing on the level of control exercised by employers. Employees are under significant control, while independent contractors operate autonomously. This distinction is crucial for understanding contractual authority, as employees can bind a business in contracts, whereas independent contractors cannot unless explicitly authorized.

What is the primary factor that distinguishes an employee from an independent contractor?

• The location of the workplace

• The type of work performed

• The level of control exercised by the employer

• The amount of salary received

In an employer-employee relationship, what does the employer typically control?

• The employee's work schedule and tasks

• The employee's personal life

• The employee's business investments

• The employee's choice of clients

Why is the distinction between an employee and an independent contractor important for contract performance?

• It determines the level of authority to bind the business in contracts

• It affects the tax obligations of the business

• It influences the business's marketing strategy

• It impacts the business's financial statements

What authority does an employee typically have in a business?

• To change the business's name

• To hire and fire other employees

• To bind the business in contracts related to their duties

• To make personal investments on behalf of the business

Under what condition can an independent contractor bind a business to a contract?

• When they work more than 40 hours a week

• When they have a higher education degree

• When they are expressly granted authority by the business

• When they have a long-term relationship with the business