L&S Case Scenario 1 (Weekly Homework) Instructions:
Your individual assignments are based on an ongoing scenario involving L&S Men’s Clothing company. While the scenario is ongoing, weekly questions relate to chapters assigned in the textbook.
As this is a law class, submissions should be thoroughly researched and documented (i.e., cited), with answers based on fact, not opinion. You should use reputable sources beyond what is provided in the textbook. Only consider US federal law when crafting your answers.
There is no page requirement for submissions, rather they should be long enough to thoroughly answer the questions asked. Assignments should be submitted in a Word or PDF document.
General Background:
Tom Long and Mark Short have formed a business and named it “The Long and the Short of It” (“L&S”). L&S is a men’s clothing store dedicated to large, tall, and short men. These are sizes not generally catered to by department stores and other men’s clothing stores.
Tom and Mark met while working at a well-known men’s clothing store. Their idea for L&S stemmed from their experience of being unable to fulfill requests for clothing from very large, tall, or short customers. Niche marketing had intrigued both of them. They wanted to open their own clothing store and thought it was far better to specialize rather than attempt to be all things to all people.
For the first 8 months of the business, Tom and Mark handle ordering, selling, measuring, and tailoring. Through an effective advertising campaign emphasizing the name of the company and its owners, many customers are attracted to the store. Sales are brisk. Tom and Mark begin to feel overwhelmed by the amount of work. Currently, store hours are Monday through Friday, 10:00 am to 6:00 pm, and Saturday, 12:00 noon through 6:00 pm. The tailoring and paperwork are done after hours.
Tom and Mark make an appointment with Susan North, an employment law specialist. They retain her services and ask her to advise them as employment issues arise with the growth of the business.
Questions
1. Tom and Mark tell Susan that they are considering expanding store hours and advertising. They wish to concentrate their efforts on management and growth. They wish to hire several workers, but they are uncertain whether or not these workers would be designated as employees or independent contractors. Susan asks Tom and Mark to describe the nature of each position, the hours worked, and the control they exercise over each worker.
Jack Walker, Grant Worthington, and Phil Costello are first-rate salespeople who have extensive experience in selling men’s clothing. They would each work 40 hours per week and be paid a base salary plus commission. The salesmen would be prohibited from working elsewhere. They would be required to wear suits, and their work schedules would be set by L&S. Paid vacation and sick leave would be given as well. Jack, Grant, and Phil would have no discretion in deciding whether to attend to a customer’s needs, and they would have no authority to hire assistants.
Nancy Cooke is being employed as an administrative assistant. Her duties will include bookkeeping, ordering, and typing, as well as telephone reception. She will work from 10:00 am to 6:00 pm, Monday through Friday. Martha Winslow, a seamstress by trade, is being hired to perform the necessary alterations on the clothing. She would be available for appointments on Tuesdays and Thursdays from 6:00 to 8:00 pm, and on Saturday afternoons from 2:00 to 4:00 pm. Martha would set her own hours in addition to these, depending on the workload. Martha has set a fee schedule covering the various types of alterations performed on a per item basis.
Stephanie Russo is a web page design specialist with a degree in graphic arts. She is being trained to create a web page for L&S. After that, she will act as a consultant for purposes of web advertising. Lucy Johnson is being hired to clean the store after hours. She will set her own schedule, and she estimates working 1 to 2 hours per night. Stephanie is being paid on a one-time fee basis for the web design work, and then will be retained on an hourly basis as a consultant. Lucy is being paid a flat fee per night, regardless of the length of time is takes for her to clean the store.
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