Please answer the following questions. This is an open book exam. There is no time limit.
Ivan has been running trucks on these rivers for years and, while it is one of the most dangerous occupations on earth, it pays very well. The problem is no one knows for sure how thick the ice is and if a truck gets stopped for any period of time, the heat from the engine melts the ice.
Consequently, Ivan is looking for a way to get out of the dangerous end of the business and stay in the profitable end. To accomplish this, Ivan calls Flash and Daring, his two best truckers and tells them that they are going to become independent contractors. Happily the three sign an agreement to that effect. Essentially the agreement provides that Ivan is going to book deliveries, lease his trucks to Flash and Daring, and pay them a percentage of the Company’s total profits.
All goes well until Ivan books a job for delivery of $50,000 of grain to Grace. While transporting the grain to Grace’s ranch, a blizzard strikes. Unfortunately, during the blizzard Flash gets a flat tire. To keep from freezing to death, she needs to keep her engine running to operate the heater. When she does, the ice beneath her truck melts and the truck sinks into the river, destroying the entire $50,000 worth of the grain she was transporting to Grace. To make matters worse, when Flash is being rescued, one of the rescuers makes a joke that Flash doesn’t think is too funny. Consistent with her temper, Flash breaks the rescuer’s jaw.
Discuss the potential rights and liabilities of Ivan, Flash, Daring, Grace and the rescuer.
Discuss your answers in a very full narrative IRAC essay with much detail.
