LEG 500# Assignment 2 : The Gig Economy, Uber (Coursework Sample)
Assignment 2: The Gig Economy
Worth 240 points
Uber is largely hailed as the advent of the gig economy, which is the idea that people will not work for any one employer, but instead will work on projects for any variety of companies desiring their services. While creating a new type of entrepreneurship for individuals, it raises a host of new legal questions for companies around the law of agency.
An investment firm has asked you to evaluate Uber’s legal exposure for the conduct of its drivers.
Write an interoffice memo in which you:
1. Summarize the main principles of agency law and the term "scope of employment." How is this term applicable when it comes to Uber and its business and the liability for its drivers?
2. Recently, an Uber driver lost control and killed his passengers. The driver was drunk. Should Uber be liable for the conduct of its driver in this situation? Why or why not? Use the law of Agency to back up your argument.
3. Identify the steps Uber should take to limit its legal exposure for the conduct of its drivers.
4. Use at least three (3) quality resources in this assignment, one being the textbook. Note: Wikipedia is not an acceptable reference and proprietary Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
• Your Memo should include a heading, summary statement, background and recommendations. See the link for information on formatting here:
The Gig Economy
Subject: Evaluation of Uber’s Legal Exposure for the Conduct of Its Drivers
It is crucial that Uber defines and clearly understand the critical issues and legal jargon that pertains to the law of Corporate Governance lest it be deemed to be engaging in illegal conduct. Below is an explanation of the fundamental principles of agency and how they apply to Uber’s situation and its relationship with its drivers.
Principles of Agency Law
First, there is the actual authority which exists as either express authority or implied authority (Sharrock, 2016). Actual express authority applies when a firm, for example, Uber enters into an agreement with its drivers. The employee has been given authority to act on behalf of the principal (Uber). For example, drivers can be asked not to use a particular route by Uber. On the other hand, actual implied authority is one where the employee does not have actual authority but infers to have been given the authority to act on behalf of the principal. In both cases, the principal is held liable.
The second principle is the principle of apparent authority. With this principle, the principal has a formal agreement with a third party. So, the third-party acts with reference to the statement of conduct from the principal. For example, if Uber had agreed with its customers that a certain route was not to be used, then the expectation was that drivers would be acting in accordance and in the
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