Which of the Following Is Not Correct Regarding the Relationship

question 77

Multiple Choice

Which of the following is not correct regarding the relationship between an independent contractor and a principal?

• A) The contractor is liable under respondeat superior .
• B) The contractor generally contracts to perform services but is not controlled by the principal.
• C) The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee.
• D) Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor.

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees.

Offshoring

Moving production outside the home country.

Offset Agreement

An agreement wherein a supplier agrees to buy products from the party to whom it is selling in order to win the buyer as a customer and “offset” the buyer’s production costs.

Import Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries or generate revenue.