Question

Ace Corporation engaged Kosier, CPA, to perform a consulting engagement. While driving to Ace's office, Kosier was involved in an automobile accident in which Norton was injured. The accident was solely Kosiers fault. If Norton sues both Ace and Kosier for the injuries Norton sustained, what will be the result?

Answer 1

Answer:

The correct answer is B. Correct! Since Ace is not in control of the actions of Kosier (an independent contractor), Ace would  generally not be responsible for Kosier's torts.

Explanation:

An independent contractor is a person who is hired to do a specific job. It is said that she is her own boss because she controls how and where the work is done.

These people have greater freedom and only undertake to perform the specific function they agreed with the person owning a company. For example, the independent contractor agrees that he will serve clients at a 9 a.m. store. at 1 p.m. or that he will go to the meetings and prepare a report on the subject assigned to him. Outside these specific functions, the independent contractor controls how he manages his time.