"Nelson Ovalles worked as a cable installer for Cox Rhode Island Tele-com, LLC, under an agreement with a third party, M&M Communications, Inc. e agree-ment stated that no employer-employee relation-ship existed between Cox and M&Ms technicians, including Ovalles. Ovalles was required to designate his aliation with Cox on his work van, clothing, and identication badge. Cox had minimal contact with him, however, and had limited power to control how he performed his duties. Cox supplied cable wire and similar items, but the equipment was delivered to M&M, not to Ovalles. On a workday, while Ovalles was fullling a work order, his van rear-ended a car driven by Bar-bara Cayer. Is Cox liable to Cayer? Explain."

textbook paragraphs :

"Normally, all employees who deal with third parties are deemed to be agents. A salesperson in a department store, for instance, is an agent of the stores owner (the princi-pal) and acts on the owners behalf. Any sale of goods made by the salesperson to a customer is binding on the principal. Similarly, most representations of fact made by the salesperson with respect to the goods sold are binding on the principal.Because employees who deal with third parties generally are deemed to be agents of their employ-ers, agency law and employment law overlap consider-ably. Agency relationships, however, can exist outside""an employer-employee relationship, so agency law has a broader reach than employment law. Additionally, agency law is based on the common law, whereas much employment law is statutory law.Employment laws (state and federal) apply only to the employer-employee relationship. Statutes govern-ing Social Security, withholding taxes, workers com-pensation, unemployment compensation, workplace safety, and employment discrimination apply only if an employer-employee relationship exists. These laws do not apply to independent contractors"

"Independent contractors are not employees because, by definition, those who hire them have no control over the details of their work performance. Section 2 of the Restatement (Third) of Agency defines an Restatement (Third) of Agency defines an Restatement (Third) of Agencyindependent contractor as follows:contractor as follows:contractor[An independent contractor is] a person who contracts with another to do something for him [or her] but who is not controlled by the other nor subject to the others right to control with respect to his [or her] physical con-duct in the performance of the undertaking. He [or she] may or may not be an agent.Building contractors and subcontractors are indepen-dent contractors. A property owner who hires a contrac-tor and subcontractors to complete a project does not control the details of the way they perform their work. Truck drivers who own their vehicles and hire out on a per-job basis are independent contractors, but truck driv-ers who drive company trucks on a regular basis usually are employees. See this chapters Ethics Today feature for a Ethics Today feature for a Ethics Todaydiscussion of disputes involving the classification of driv-ers working for Uber and Lyft.The relationship between a principal and an inde-pendent contractor may or may not involve an agency relationship. To illustrate: A homeowner who hires a real estate broker to sell her house has contracted with an independent contractor (the broker). The homeowner has also established an agency relationship with the broker for the specific purpose of selling the property. Another example is an insurance agent, who is both an indepen-dent contractor and an agent of the insurance company for which he sells policies. (Note that an insurance broker,in contrast, normally is an agent of the person obtaining insurance and not of the insurance company.)""The courts are frequently asked to determine whether a particular worker is an employee or an independent contractor. How a court decides this issue can have a sig-nificant effect on the rights and liabilities of the parties. Employers are required to pay certain taxes, such as Social Security and unemployment taxes, for employees but not for independent contractors. Therefore, workers may ben-efit from obtaining employee status in some situations.Criteria Used by the CourtsIn deciding whether a worker is categorized as an employee or an independent contractor, courts often consider the following questions:1. How much control does the employer exercise over the details of the work? If the employer exercises consid-erable control over the details of the work and the day-to-day activities of the worker, this indicates employee status. This is perhaps the most impor-tant factor weighed by the courts in determining employee status.2. Is the worker engaged in an occupation or business dis-tinct from that of the employer? If so, this points to tinct from that of the employer? If so, this points to tinct from that of the employer?independent-contractor, not employee, status.3. Is the work usually done under the employers direction or by a specialist without supervision? If the work is usually done under the employers direction, this indicates employee status.4. Does the employer supply the tools at the place of work? If so, this indicates employee status.5. For how long is the person employed?If the person is employed for a long period of time, this indicates employee status.6. What is the method of paymentby time period or at the completion of the job? Payment by time period, such as once every two weeks or once a month, indi-cates employee status.7. What degree of skill is required of the worker?If a great degree of skill is required, this may indicate that the person is an independent contractor hired for a spe-cialized job and not an employee.Whether a worker is an employee or an independent contractor can affect the employers liability for the work-ers actions. An employer normally is not responsible for the actions of an independent contractor. In the following case, the court had to determine the status of an auto ser-vice company and its tow truck driver who assaulted the passenger of a vehicle the company had been hired to tow"