- 22 - TAG's lack of control and lack of right to control the manner and means by which Hathaway solicited sales strongly support a finding that Hathaway was an independent contractor, not an employee of TAG. B. Investment in Facilities and Sales Materials and Equipment Hathaway made a substantial investment in facilities and bore substantially all the expenses of his sales activities. The record is not clear with respect to when the investment was made, but Hathaway spent about $18,500 to build and furnish a dual- purpose office and showroom onto his house. Hathaway spent about $10,000 in 1990 to rent and outfit a showroom in Minneapolis. Hathaway spent $84,763 in 1989 and $84,847 in 1990 for sales material and equipment, his business quarters, apparel shows, and assistants. In addition, Hathaway bought $23,277.56 and $19,219.11 worth of sales material and equipment from TAG in 1989 and 1990, respectively. See table supra p. 11. TAG did not reimburse Hathaway for any of these expenses. TAG provided to Hathaway minimal supplies, specifically order forms, swatch cards, and envelopes preaddressed to TAG. Hathaway’s substantial investment in facilities and sales material and equipment, especially relative to the minimal supplies provided by TAG, supports a finding that Hathaway was an independent contractor, not an employee of TAG.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011