Question: Business Law
A barbershop was sued by the State for not paying for workers' compensation insurance for the barbers in its business. One of the barbers, Charles, replied that since he and the other two barbers were partners and not employees, there was no requirement to pay into workers' compensation. The partnership agreement had the following provisions:
1) Charles would supply barber chairs, supplies, and licenses; the other two barbers would supply tools of the trade. At the end of the partnership, ownership of items reverted to party providing them.
2) Income was to be divided 70% for Charles and 30% for the other two barbers.
3) Partnership policy would be decided by Charles. Are Charles and the other two barbers partners? Explain your answer with reference to partnership law.