Corporate Law – Draft indemnity agreement, assignment help
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Jennifer Jones owns a business called Maid4U, which provides
residential cleaning services. Two women, Grace and Hope, hand out
fliers for Maid4U to prospective customers. They choose where and when
to distribute the fliers, which have a coupon entitling the customer to a
50% discount for their first cleaning service. Each flier contains a
code indicating whether it was received from Faith and Hope. The only
compensation that Faith and Hope receive from Maid4U is a flat fee of
$20 for each coupon that a new customer redeems for their first house
cleaning service.
When a new customer calls Maid4U to arrange for cleaning services,
Jennifer goes out to see their home and gives them a price quote for
weekly cleaning services. If the price is acceptable, the client signs a
contract for weekly cleaning services. Jennifer then contacts April,
Mae, or June and schedules one of them to clean the house each week at
the requested dates and times. Each week that the house is cleaned,
Jennifer splits the fee collected with the cleaner (April, Mae, or June)
50-50. Each cleaner was trained by Jennifer and must clean the homes
according to the instructions of the owner and Jennifer. Jennifer
usually stops by the home at the end of each cleaning to inspect it and
make sure that work is performed in a satisfactory manner. Each cleaner
uses their own supplies and equipment, as well as their own personal
vehicle or public transportation for traveling to and from the clients’
homes.
Jennifer has come to your law firm after receiving notice from the
Internal Revenue Service that she is being audited for failing to
withhold and pay Social Security taxes for Grace, Hope, April, Mae, and
June. Your supervising partner has requested that you draft a memo that
(1) explains the criteria that the IRS uses to determine whether or not
someone is considered an employee for purposes of taxation, (2) analyzes
whether Grace, Hope, April, Mae, and June meet the criteria for
employee status, and (3) predicts the likely outcome of the audit.
Your memo should be 3-4 pages in length. Incorporate at least 5
different law review journal articles and/or primary legal sources
(statutes, court opinions) within your work. Format citations and
references per Harvard Blue Book rules.
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