Opinion ID: 1451217
Heading Depth: 2
Heading Rank: 2

Heading: Whether PST is a business

Text: The next factor to consider is whether or not the one employed is or is not a business. See Restatement Second of Agency § 220(2)(j). ConAgra asserts that this factor favors its argument that PST was an independent contractor because PST was a separate corporation engaged in a distinct business. ConAgra asserts that PST was a trucking company, while ConAgra was a vertically integrated poultry company. The Drapers argue that PST was not a separate business because its sole function was to supply equipment and drivers to ConAgra. In Arkansas Transit, supra, we affirmed the circuit court's ruling that contract drivers who did not engage in work other than hauling mobile homes for the appellant's business were not engaged in a distinct occupation or business. Here, Patterson testified that the purpose of creating PST was to provide trucks and drivers to Banquet Foods, which later became ConAgra. PST did not have any customers other than ConAgra. In fact, PST was so dependent upon maintaining its deal with ConAgra that PST went out of business when its agreement with ConAgra was terminated. Therefore, fair-minded people could come to the conclusion that PST was not engaged in a distinct occupation or business because PST's sole purpose was to provide trucks to ConAgra, its only customer. See McMickle, supra .