Morris negligently collides with Hudson, who sues (a) Acme and (b) Morris. Who should be held liable?
Morris, a salesperson for Acme, Inc., a manufacturer of household appliances, receives a commission on all sales made and no further compensation. He drives his own automobile, pays his own expenses, and calls on whom he pleases. While driving to make a call on a potential customer, Morris negligently collides with Hudson, who sues (a) Acme and (b) Morris. Who should be held liable?
"Individual M should be held responsible for the accident." is correct
"Company A should not be held responsible for the accident." is incorrect
Liability of the principal arises when its employee performs certain functions but not in case of the independent contractor. Individual M is an independent contractor which gives rise to the fact that Individual M's actions are not in control of Company A.
Individual M uses one's own vehicle for sale purposes and contacts their choice of customers. Company A does not give any order or specification to Individual M on how to perform their duties or whom to contact. For this reason, Individual M will be held responsible for the accident with Individual H.