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Business & Marketing
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Assignment 2: The Gig Economy. Business & Marketing Essay

Essay Instructions:

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. Your boss has asked you to evaluate Uber’s legal exposure for the conduct of its drivers.
Write an interoffice memo in which you:
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? (Remember to consider liability as to Uber employees and as independent contractors)
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.
Identify the steps Uber should take to limit its legal exposure for the conduct of its drivers.
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 this Memo AND the attachment. https://owl(dot)purdue(dot)edu/owl/subject_specific_writing/professional_technical_writing/memos/index.html

Essay Sample Content Preview:

Interoffice Memo
Student’s Name
Institutional Affiliation

Interoffice Memo
To:
From:
Date: March 2, 2020.
Subject: Principles of Agency Law and How They Relate to Uber and Its Drivers.
The gig economy has made it possible for companies such as Uber to operate by inviting relevant stakeholders to offer services to its customers without relying on a single employer. However, Uber should understand the critical issues that pertain to the agency law to maintain a good relationship with its agents. The company acts as the principal while drivers are agents. An agency relationship occurs when a party, drivers, is given the legal authority to represent the principal, Uber.
Agents are required to be obedient, loyal, and have reasonable care to their principal. In other words, they should act in the best interest of their principal by avoiding conflicts of interest and behaving professionally when handling customers. The scope of employment refers to the legal consideration of activities that occurs in an individual’s performance at work and relate to one’s job description. The first primary principle of agency law is known as the actual authority. Indeed, it exists as implied or express authority. Express authority occurs when a company enters into a contract with agents. For example, an agreement between Uber and its drivers (Jennings, 2018). Express authority permits agents to act on behalf of their principal. In implied authority, agents are inferred by the principal to act in a particular way. In both ways, the principal is liable for agents’ behaviors. The other main principle is apparent authority. In this law of agency, the principal makes a formal agreement with third parties. For instance, Uber can inform its clients not to use a specific route. In this case, drivers are expected to act in accordance with the order given by the principal through customers. The third principle is the ratified authority, where the principal approves agents’ acts if they were done with the best interest of the firm at heart.
Based on the principles of the agency law discussed above, the principal is liable for agents’ behaviors. Once an agreement occurs between Uber and its drivers, the latter shou...
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