This section contains the nature of the case and procedural background.

Fenwick (D) commenced operation of a beauty shop in Newark in 1936. In 1936 he employed Mrs. Chesire as a cashier and reception clerk. Her duties were to receive customers, take their orders for the services to be performed by the operators and collect the charges thereof. Mrs. Chesire worked for a salary of $15 per week. The shop was a first come first serve shop. An agreement was reached in 1939 that the parties would associate themselves into a partnership named the United Beauty Shoppe. Mrs. Chesire was to make a salary of $15 per week and 20% of the net at the end of the year. Only D was liable for capital investment and the debts of the partnership and took all assets upon dissolution. The relationship was eventually terminated in 1942 as Mrs. Chesire wanted to stay home with her children. The Commission (P) held that the agreement was merely for compensation. The Supreme Court held it was a partnership agreement.

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