This report analyzes the extent to which an employer, in this case, Widget Corporation, can be held liable for the actions of an independent contractor, Lyle, whose negligence resulted in injury to a Texas customer. The report delves into the principles of vicarious liability, exploring the circumstances under which an employer can be held responsible for the torts of an independent contractor. It examines the application of business ethics, considering the corporation's duty of care and reasonableness in its dealings. The report assesses the specific issues faced by Widget Corporation, including the level of control exerted over the contractor and the potential defenses available. By reviewing legal precedents and ethical considerations, the report evaluates the extent of the corporation's liability and explores potential remedies, such as alternative dispute resolution methods, to resolve the issue equitably.