Legal Liability and the Gig Economy Law Essay Paper

Legal Liability and the Gig Economy
Name
Institutional Affiliation
Legal Liability and the Gig Economy
Uber Technologies
Uber has long been recognized as the leader in the contemporary disruptive technologies as well as the ensuing sharing economy (Penn & Wihbey, 2016). Nevertheless, every business operates in a legal environment and so is the case with Uber. It is up to the management to ensure that they operate within the established legislative environment or else they risk the wrath of extortive legal costs that could impact their net profits. A company’s business model has to integrate the principles of agency and abiding legal instruments that may be unfavorable.
On the other hand, Uber’s business model facilitates the articulation of strange legal relationships with stakeholders implying that there is room for dangerous exposure. For instance, the company avoids employment-related costs by identifying its drivers as independent contractors rather than as employees. Regulatory arbitrage has helped the firm in the reduction of its costs through a curated analysis of social security contributions, unemployment compensation, and workers’ compensation (Loewenstein, 2016). Unfortunately, drivers are subjected to most of these costs.
Primary Principles of the Agency Law
The first principle is that of actual express authority. In this case, express authority refers to the powers that Uber, the principal, has relayed to the agent in this working relationship (the drivers). The conveyance of this explicit agreement could be in writing or oral communication. Uber has explicitly asked its drivers to facilitate the geographical mobility of its clients as they move from one location to another meaning that it is the least-cost-avoider (Rasmusen, 2004). Retrospectively, the company is tasked with ensuring that both parties (drivers and riders) receive fair deals in their transactions. In this case, customers want convenient and affordable rides. On the other hand, the company’s independent contractors acclimate to flexible methods of making money. The express authority principle facilitates the attainment of an agreement where the principal and the agent (Uber and drivers) consent to the clauses in the contract. The expression is fundamental to the realization of the vision thereof.
The second primary principle is referred to as the actual implied authority. It asserts that the agent’s actions are reasonably incidental and more importantly, they endear to guarantee the effective performance of their responsibilities. Nevertheless, the content from this principle is highly dependent upon prevailing facts as well as the usages and customs accompanying a precise profession, business, or trade. The agent infers the acquisition of authority concerning this principle and thus, will relate to the delegation of the precise action from the principal. For instance, even though they are required to conduct their activities in a particular manner, agents bear of initiating a change when an anomaly ensues.
The third principle is that of apparent authority. This principle outlines that the principal has to represent themselves well to the clients (through words or conduct), often referred to as ...