Question re first mid-term

Hello Professor Hayes, 

I have a question, in regard to the assignment did Jack sell his own common stock or issue new stock? the facts are not clear and I’m confused. 

Answer, I’m not sure it matters. If you think it does, you should say, “If Jack sold his own stock, then such and such, but if the corp sold new stock, then such and such.”

Study session tomorrow 10-10-20 if anyone is interested

I will hold a study session tomorrow by Zoom from 10:00am to 11:30am if I get at least three people who request it. Send me an email and if I get three, I will send the Zoom instructions.

We can review your answers to the short essay questions if you wish as long as I can give copies of your answers to whoever else is on Zoom so that they can follow along.

We can also review whatever areas we have already studied so far this year.

Let me know. Prof Hayes.

Assignment for Tuesday

We will discuss these seven cases in class on Tuesday.

Three Seventy Leasing Corp 31
Botticello 41
Humble Oil 66
Hoover 68
You have already done the questionnaires for these cases (or should have.  If you have not done them yet, turn them in now).
Partnership cases.
Martin v. Payton 137
Putnam 157
Page v. Page 166
Your case questionnaires for these three cases must be uploaded to dropbox by 6:30pm Tuesday.
Do the short essay as well.  We will begin the class by discussing the short essay.  The short essay question is in dropbox on D2L.

What is an employee under California law?

We are going to spend Tuesday discussing agency law.  The issue comes up in two contexts:  1.  Is a principal liable for the contract entered into by his (or its) agent?  Answer, yes if the agent had authority.  2.  Is a principal liable for the torts of his agents?  Answer, yes if the agent is an employee, maybe (although probably not) if the agent is an independent contractor.

So what is an employee?  That could easily be an entire semester.  The question necessarily includes what is an employer?

The California Supreme Court has recently given us 85 pages of explanation (and history of the issue) of how to figure out whether a person is an employee or independent contractor.

In Dynamex Operations West, Inc., v. Superior Court, 4 Cal.5th 903 (2018), the Supreme Court summarized it with a three part test:

1. Is the worker free from the control and direction of the hiring entity in the performance of the work, both under the contract for the performance of the work and in fact?
2. Does the worker perform work that is outside the usual course of the hiring entity’s business?
3. Is the worker customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity?

It concluded that it is the employer’s burden to establish all three.  “The hiring entity’s failure to prove any one of these three prerequisites will be sufficient in itself to establish that the worker is an included employee, rather than an excluded independent contractor, for purposes of the wage order.”