Lucy had been selling her exciting new product for a couple of years when she was approached by her neighbor, Wanda, who asked if she could sell for Lucy, inasmuch as she was a professional salesperson and could help out in the evenings and on weekends. She also said that she had a few thousand dollars that she “would like to put in the business,” as it seemed like it was going to be a “goldmine!”
Lucy thought this was a great idea. She took Wanda’s money, bought some new equipment, and agreed to split the annual profits with Wanda 70%/30%. No documents were created to codify the arrangement, which was nothing more than described. Soon another neighbor advised Lucy that Wanda was talking to lenders about borrowing money for the business, and was seemingly quite cavalier in her driving of the company van while delivering products to customers. She said that she thought Wanda was “an accident waiting to happen.” Further, the neighbor told Lucy to be careful, as she understood that Wanda’s relationship with Lucy might well be that of a partner, and that Lucy might be liable for financial obligations or property damage caused by Wanda. Is the neighbor correct with her statements regarding Wanda’s legal relationship with Lucy? Why or why not? Explain your answer.
Please limit response to 100 words. Thanks!