Nelson is properly classified as an independent contractor for FunTime Toys. While driving to a meeting at FunTime's headquarters, Nelson caused a car accident in which a cab driver was hurt. Upon investigation, it was found that Nelson was on the phone with one of the managers at FunTime when he was driving that day. Which of the following may be true in the context of liability for the accident? 1. FunTime has no liability, because Nelson is not a full-time employee. 2. FunTime has vicarious liability. 3. FunTime has no liability, but only if Nelson is a member of a protected class. 4. FunTime has strict liability.

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Answer:

1. FunTime has no liability, because Nelson is not a full-time employee.

Explanation:

In the context, it is given that Nelson works as an independent contractor in FunTime Toys. Nelson met with a car accident while driving to the head quarter of FunTime Toys. He was also on a call speaking to a manager of the FunTime Toys when he met the accident.

But here, FunTime Toys has no liability for the accident because Nelson was not a regular and full time employee at FunTime Toys.

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