This Case Study is based upon the following set of facts. At the end of the Case Study are the questions that you are to address. In evaluating these facts, please note that you have all of the facts that you need for purposes of your analysis. There may be other facts that you wish you had. However, you have all of the information you need for this analysis. Additionally, assume that the parties are able to prove all of the facts as indicated. It is not the purpose of this Case Study that one or more of these facts may be hard to prove. There is no page requirement. However, you should assume that I know nothing about the law. You are explaining this to a civilian. Therefore, your explanations and analysis should require extensive writing. The following rubric will be used to grade your response.

Grammar, spelling, sentence structure, etc. $10$ pts

Organization $15$ pts

TC v$.$ Smith, et al$.,$ ownership of the software $25$ pts

TC v$.$ Smith, et al$.,$ agreement not to compete $25$ pts

IRS v$.$ TC $25$ pts

Toledo Corporation $($TC$)$ is a software engineering company that provides custom software services for the health care industry. The clients of TC are, generally, hospitals, clinics or large doctors offices in Ohio, Michigan and Pennsylvania.

TC entered into a $5-$year contract with William Smith $($Smith$).$ Smith is a software engineer with a degree in Software Engineering from Middle South$-$West State University. The agreement, in writing, between TC and Smith is headed as Independent Contractor Agreement $($the Agreement$).$ The Agreement provides, in pertinent part, that Smith is an Independent Contractor for TC$.$ Smith is to provide Software Engineering Services to TC$.$ Smith will receive a payment of $$50,000$ per year $($divided into $12$ equal monthly installments$)$ for his services. Smith is expected to spend a minimum of $40$ hours per week on TC projects. Under the contract, Smith is not entitled to overtime. TC provides Smith with an office, computer, software development software and tools and administrative staff. The Agreement provides that Smith is responsible for all of his own taxes, insurance and other benefits. The Agreement provides that any software developed by Smith during the term of the Agreement is the property of TC$.$ Finally, the Agreement provides that Smith will not work for another software development company or provide software engineering services for anyone for the term of the Agreement and for another $5$ years following termination of the Agreement, provided that if Smith is terminated for economic reasons, or the Contract is not extended at its expiration, then Smith is only prohibited from working as a software engineer for a period of $1$ year.

While working for TC$,$ Smith$$s best friend, Teddy Jones, approached Smith about helping Teddy develop an app for betting on Cricket games. Smith believed that Teddy$$s idea was very interesting and agreed to help him. On his own time and with his own equipment, Smith wrote the software for Teddy$$s Cricket betting app, Cricket Cash. There were a few instances that, after ending his work for TC for the day, Smith would remotely access his own computer using TC$$s provided computer and internet access.

As it turns out, Cricket Cash was a hit. As a result, Teddy asked Smith to come work for him as the Chief Software Officer for a salary of $$150,000$ plus stock options. Smith$$s primary duties would be to keep the Cricket Cash software operating and develop new components for the app. Smith agreed and turned in his resignation to TC$.$ TC filed suit against Smith, Jones and Cricket Cash. The lawsuit sought a permanent injunction against Smith, prohibiting him from working for Cricket Cash, and for ownership of the Cricket Cash app software.

About the same time, the Internal Revenue Service $($IRS$)$ audited the tax returns of TC$.$ Among other things, the IRS determined that Smith was an employee of TC$,$ not an independent contractor, and assessed TC the sum of $$125,000$ for past due payroll taxes, penalties and interest. It would seem as though while Smith had paid his income taxes, he had not paid anything towards FICA, Medicare, etc. TC appealed the determination of the IRS to the appropriate court within the appropriate time $($in other words, there are no issues to be discussed regarding the appeal process$).$

$1.$ Fully analyze and discuss the lawsuit between TC and Smith, et al$.$ Specifically, I am looking for what law$($s$)$ apply, what each party$$s position would be$,$ and how each law would apply to those positions. If you want to suggest a possible outcome to the suit, that$$s fine. However, I will not be grading your proposed outcome.

$2.$ Fully analyze and discuss the lawsuit between TC and the IRS. Specifically, I am looking for what law$($s$)$ apply, what each party$$s position would be$,$ and how each law would apply to those positions. If you want to suggest a possible outcome to the suit, that$$s fine. However, I will not be grading your proposed outcome. Ignore the amount of t