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Western Rivers Fly Fisher (Western) operates under license of the U.S. Forest Service as an ‘‘outfitter,'' a corporation in the business of arranging fishing expeditions on the Green River, Utah. Michael D. Petragallo, is licensed by the Forest Service as a guide to conduct fishing expeditions but cannot do so by himself, because the Forest Service licenses only outfitters to float patrons down the Green River.

Western and several other licensed outfitters contact Petragallo to guide clients on fishing trips. Because the Forest Service licenses only outfitters to sponsor fishing expeditions, every guide must display on the boat and vehicle he uses the insignia of the outfitter sponsoring the particular trip. Petragallo may agree or refuse to take individuals Western refers to him, and Western does not restrict him from guiding expeditions for other outfitters.

Western pays Petragallo a certain sum per fishing trip and does not make any deductions from his compensation. Petragallo's responsibilities include transporting patrons to the Green River, using his own boat for fishing trips, providing food and overnight needs for patrons, assisting patrons in fly fishing, and transporting them from the river to their vehicles. Robert McMaster contacted Western and arranged for a fishing trip for himself and two others. Jaeger, was a member of McMaster's fishing party. McMaster paid Western, which set the price for the trip, planned the itinerary for the McMaster party, rented fishing rods to them, and arranged for Petragallo to be their guide. When Petragallo met the McMaster party, he answered affirmatively when Jaeger asked him if he worked for Western. While driving the McMaster party back to town at the conclusion of the fishing trip, Petragallo lost control of his vehicle, injuring Jaeger, who brought suit against Western, Petragallo, and others.

Western claims that because Petragallo is an independent contractor and was never its employee, it is not liable for Petragallo's acts in causing Jaeger's injuries. Is Petragallo an independent contractor? Explain.

Management Theories, Management Studies

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