Economic-Realities Test Law and Legal Definition
Economic realities test refers to a method that determines the nature of a business transaction by examining the totality of the commercial circumstances. The test also determines if a particular instrument is an investment contract. Courts use this test in order to ascertain if a person is an employee or an independent contractor. It is also known as common law agency test or common law hybrid test.
In United States v. Bergbauer, 602 F.3d 569 (4th Cir. Md. 2010), the following are the elements of economic realities test:
1.the intent of the parties; and
2.the economic substance of the transaction.
Legal Definition list
- Economic-Harm Rule
- Economic Warfare
- Economic Vacancy
- Economic Territory
- Economic Strike
- Economic-Realities Test
- Economically Disadvantaged
- Economically Disadvantaged Entrepreneur
- Economically Disadvantaged Family or Individual
- Economically Disadvantaged Women‐Owned Small Business [EDWOSB]
- Economically Distressed Area
Related Legal Terms
- Ab Intestato
- ABC Test
- Abstraction-Filtration-Comparison Test
- Abstractions Test
- Acceptance Testing
- Acceptor Supra Protest
- Acid Test Ratio
- Actual-Risk Test
- Actus Inceptus Cujus Perfectio Pendet Ex Voluntate Partium Revocari Potest, Si Autem Pendet Ex Voluntate Tertiae Personae, Vel Ex Contingenti, Revocar
- Ad Testificandum
