Evaluation of Uber's Legal Exposure for the conduct of its Driver's (Research Paper Sample)
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.
2.Analyze the circumstances under which Uber might be liable for the conduct of its drivers.
3.Identify the steps Uber can take, if any, to limit its legal exposure for the conduct of its drivers.
4.Use at least four (4) quality resources in this assignment. Note: Wikipedia is not an acceptable reference and proprietary Websites do not qualify as academic resources.
Re: Evaluation of Uber's Legal Exposure for the conduct of its Driver's
In good faith and with due respect to the Uber service provider, the agency needs to address some of the pertinent and critical issues with the potential of making the firm perform its operations in line with the law of the Corporate Governance.
The Fundamental Principles of the agency are as below.
Actual express authority. In regards to this principle, there will be an explicit written agreement between Uber and the drivers to participate in a certain activity (Davis, 2015). For instance, giving directives to drivers to pick and drop the customers at a certain designated location.
The principle of apparent authority. This principle occurs when there is an agreement with the third party who is the customer and not the agent. The agent is obliged to respect the directive from the principal because he has an apparent authority (Edelman & Geradin, 2015). For example, if the principal with an apparent authority orders the agent not to take a given route due to dilapidated road condition, the driver has a sole responsibility to obey that directive.
The principle of ratification. This principle is implemented when there is a vacuum in authority, but the principal agrees to contract once he learns about it. This ratification binds the principal (Hall & Krueger, 201
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