Paul E. Hathaway and Brenda J. Hathaway - Page 22

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               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.                             








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