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Diana and Earl incorporate their computer technical support business as Fast Aid, Inc. Diana contracts with Gina to respond to Fast Aid’s customer service calls on a commission basis. What are the advantages and disadvantages to Fast Aid of classifying Gina as an independent contractor rather than as an employee? Earl obtains a loan from First National Bank and signs a promissory note for repayment of the amount without indicating that he is doing so on behalf of Fast Aid. Fast Aid does not make enough profit its first year to make payments on the loan. Charging default, the bank files a suit against Earl for the unpaid amount. Earl responds that he was acting on behalf of Fast Aid. Will the bank succeed against Earl? Why or why not?

 

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