Melinda D. Rivera - Page 13

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               Compensation on a commission basis is entirely consistent              
          with an employer-employee relationship.  Texas Carbonate Co. v.             
          Phinney, 307 F.2d 289, 292 (5th Cir. 1962); Capital Life & Health           
          Ins. Co. v. Bowers, 186 F.2d 943 (4th Cir. 1951).                           
               While petitioner could conceivably have suffered some loss             
          as a result of her sales activities, she may still be an employee           
          under the common law test if her risk of loss was negligible.               
          Lewis v. Commissioner, supra; Radovich v. Commissioner, T.C.                
          Memo. 1954-220.                                                             
               Petitioner did not purchase or own the products she sold.              
          Given her guaranteed base salaries from her employers,                      
          petitioner's risk of loss from her sales activities was                     
          negligible at best.                                                         
               D.   Permanency of Relationship                                        
               There is no information in the record with respect to this             
               E.   Principal's Right To Discharge                                    
               There is no information in the record with respect to this             
          factor as it pertains to Peerless; however, petitioner was                  
          subject to a 90-day probationary period at the beginning of her             
          employment with the company.  Petitioner's employment with Big              
          Train, however, was terminated by Big Train in August 2000.  This           
          is consistent with employee status.                                         

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