CASE STUDY

Soothing Spa is a successful corporation that has acquired a vast amount of popularity in Los Angeles. Soothing Spa offers the finest in massages, hair styling, nail treatments, as well as amenities that include whirlpools, steam rooms, saunas, misting rooms and cold plunges. Soothing Spa also sells products such as lotions, creams, shampoos, body gels, soaps, conditioners and other hair and body products.
One day, Randy Roller visits a Soothing Spa facility and discusses a potential business adventure with Britney, the receptionist. Randy Roller offers to sell a product called, “Rejuvenate,” and market it by applying it on customers who come to Soothing Spa.
Britney in the past has never hired any employees for Soothing Spa. Randy convinces Britney of this product, and with great enthusiasm, Britney offers the job to Randy.
The manager of Soothing Spa requests for Randy to attend a one week seminar on the company’s policy and procedures. The manager of Soothing Spa also gives Randy a tour of the place. Randy agrees to use his own equipment, except for the cotton balls and the Q-tips that Soothing Spa has readily available. Soothing Spa agrees to pay Randy a weekly check as well as provide him with a 1099 Form. Soothing Spa trains Randy on the application process of the “Rejuvenate” cream. Randy is also scheduled to work Monday through Friday, 9:00 a.m. to 5:00p.m. Randy wears a uniform with the “Rejuvenate” logo on it.
On Randy’s first day at Soothing Spa, he applies the “Rejuvenate” cream on Jessica, a customer who frequently visits Soothing Spa. Unbeknownst to Randy, Jessica is allergic to the components of “Rejuvenate” and her entire face burns.
1. Is Randy an Independent Contractor or an Employee of Soothing Spa? Explain.
2. Could Jessica sue Randy? Explain.
3. Could Jessica sue Soothing Spa for Randy Roller’s actions? Explain.
4. Did Britney have authority to hire Randy on behalf of Soothing Spa? Explain.

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