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Latin America Potpourri

Your name is Y. Lee Coyote, ACME Tours has asked you to serve as one of their tour conductors this summer. They ask you to sign the contract given below. Read the contract carefully, then answer the questions that follow.
Sample agreement Between a Tour Operator and a Tour Manager
This professional services agreement is entered into by and between ACME Tours, a company incorporated in the State of Delaware and based in New York City, Hereafter referred to as the tour Operator, and Y. Lee Coyote, and Independent contractor operating his business based in Burbank, California, hereafter referred to as the tour Conductor. This agreement will be in effect from June 1, 2001, to September 4, 2001.
The tour Conductor shall travel with ACME's preformed groups as specified in ACME's tour itinerary and shall perform, to his best efforts, all typical tour conducting functions, including but not limited to the management and coordination of the group's activities at airports, hotels, cruise ships, train, restaurants, attractions, motorcoaches and other such locations, as specified in the tour departure's itinerary, as well as give sightseeing commentary, as needed. As an independent contractor, the tour Conductor reserves the right to exercise his judgment with regard to commentary content, routings, scheduling, problem resolution, and the like, provided that such judgments' are consistent with the passengers' expectations, such expectations being the result of the Tour Operator's tour itinerary and promotional materials, as well as the Tour Operator's expectations with regard to the tour's cost, legal requirements, and the like.
the Tour Operator shall treat the Tour Conductor's expenses as part of the group's normal expenses. As a result, the Tour Operator shall pay for any and all transportation, accommodation, dining, baggage handling, and similar expenses that would normally be included as part of a passenger's paid for tour package and that are incurred by the Tour Conductor, including as part of a passenger's paid for tour package and that are incurred by the Tour operator shall also pay the Tour Conductor to the tour's starting point and from the tour's end point. the Tour Operator shall also pay the Tour Conductor $120 per calendar day for his rendered services, beginning with the first day he meets his group through the last day he will be with the group.
Both parties to this agreement acknowledge that the Tour Conductor, as a self employed independent contractor, reserves the right to accept or refuse each assignment offered by the Tour Operator during the duration of this agreement, according to his circumstances and schedule. The Tour Conductor also reserves the right to accept assignments from other tour operators. Once a tour management assignment is offered and accepted by the Tour Conductor, he must not accept any other assignment from another company for the same time period unless the Tour Operator cancels the tour or release, in writing the Tour Conductor from his agreed upon assignment. The Tour Operator cancels the tour or releases, in writing, the Tour Conductor from his agreed upon assignment. The Tour Conductor agrees to not accept commissions, fees, and the like from hotels, restaurants, attractions, stores, and the relationship, stated or implied, between the tour Operator and the passengers and/or suppliers.
The tour Conductor represents and warrants that he is an independent contractor for purposes of federal, state and local employment taxes, including, but not limited to , income tax withholding and social security contributions, for the tour Conductor. Any and all taxes, interest, or penalties, including, but not limited to, any federal, state, or withheld by the Tour Conductor upon demand by the Tour Operator.
The Tour Conductor also acknowledges that, as an independent contractor, he is in no matter entitled to health insurance coverage, profit sharing plans, health plans, unemployment benefits, paid sick leave, paid vacation leave. The Agreement shall be governed by and construed in accordance with the laws of the State of New York. The Tour Conductor hereby consents and submits to the jurisdiction of the courts in the State of New York in all questions and controversies arising out of this Agreement. This Agreement constitutes the entire agreement between the parties.
Executed on the dates set forth below to be effective as of the date first above written by the Tour Operator and the tour Conductor.
1. If another company ask you to conduct a tour for the week of July 4 at a rate of $150, can you accept the assignment?
2. Can you accept gratuities from passengers?
3. Will ACME reimburse you for phone calls that you make a reconfirm restaurant or hotel reservations?
4. Will ACME withhold social security from your paycheck?
5. How far in advance must ACME inform you that a tour you've been booked to conduct has been canceled?
6. Your tour arrives in Boston. Will you or a step-on guide give the city tour?
7. The itinerary shows no rest stop scheduled during a three-hour motorcoach ride. Can you schedule one?
8. Can you set up a nightclub tour for your passengers on an evening when ACME has not scheduled anything?
9. You go to a restaurant where the passengers must pay for their meal the lunch is not include in the tour package price. Will ACME reimburse you for the cost of your meal?
10. You travel on June 15 from Burbank to New York City. You will meet the group on June 16 for a seven day tour of New England. but on the morning of June 16, you wake up sick and cannot take the group. Will you still be paid for the New England tour? Will you be paid for your June 15 travel day?

Solution Preview

1. If another company ask you to conduct a tour for the week of July 4 at a rate of $150, can you accept the assignment? It would depend on whether ACME Tours had a scheduled assignment for that time period and I accepted. If I had not yet accepted, then yes, I would be able to take the higher paying position, but only upon a written release from ACME.

The Tour Conductor also reserves the right to accept assignments from other tour operators. Once a tour management assignment is offered and accepted by the Tour Conductor, he must not accept any other assignment from another company for the same time period unless the Tour Operator cancels the tour or release, in writing the Tour Conductor from his agreed upon assignment. The Tour Operator cancels the tour or releases, in writing, the Tour Conductor from his agreed upon assignment

2. Can you accept gratuities from passengers? No.

The Tour Conductor agrees to not accept commissions, fees, and the like from hotels, restaurants, attractions, stores, and the relationship, stated or implied, between the tour Operator and the passengers and/or suppliers.

3. Will ACME reimburse you for phone calls that you make a reconfirm restaurant or hotel reservations? Yes.

As an independent contractor, the tour Conductor reserves the right to exercise his judgment with regard to commentary content, routings, scheduling, problem resolution, and the like, provided that such judgments' are consistent with the passengers' expectations, such expectations being the result of the Tour Operator's tour itinerary and promotional materials, as well as the Tour Operator's expectations with regard to the tour's cost, legal requirements, and the like. ...

Solution Summary

The expert examines Latin America Potpourri for Y. Lee Coyote. ACME tours conductors contracts are examined.

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