Ride sharing companies are largely hailed as the advent of the gig economy, which is the idea that people do not work as permanent employees for one employer but instead work in a labor market characterized by short-term contracts or freelance work.
While creating a new type of entrepreneurship for individuals, a gig economy raises a host of new legal questions about the law of agency for companies utilizing gig workers.
Widgets operates a ride-sharing business in a small town. Your boss at an investment firm has asked you to evaluate Widget’s legal exposure for the conduct of its drivers, given the information below and identify, and to explain the law and legal liability in this vast new gig economy world.
Write a 3 to 4-page interoffice memo in which you do the following:
1. Summarize the main principles of agency law as they relate to Widgets’ relationship with its drivers. (30%)
Consider the issues below when formulating your answer: Foundation from reading Chapter 16. What is meant by the Principal-Agent relationship? What are the duties of each? Are Widgets driver’s agents? What is the law as to deeming one an employee versus an independent contractor?
2. Analyze the circumstances under which Widgets might be liable for the conduct of a driver who, while intoxicated, caused an accident involving personal property damage and bodily injury.
(30%)
Consider the issues below when formulating your answer: What is the law when it comes to liability for a Principal for an agent’s tort? What is drunk driving? What civil remedies are there for an injured passenger today?
3. Identify the steps Widgets should take to limit its legal exposure for the conduct of its drivers. (30%).
Consider the issues below when formulating your answer: This is your recommendation section based on research. How to limit legal exposure and mitigate risks for liability? What is the difference between an employee versus independent contractor and can a driver be both?
4. Use at least three (3) quality resources in this assignment and follow Strayer Writing Standards for citing sources. (5%)
Quality resources are course textbook, published books, academic journal articles, case law and expert reports. Be sure to include a Source Page and follow SWS. Wikipedia is not a valid source for this paper. Failure to cite sources in the text of the paper will result in a zero grade and resubmission. The late penalty policy will apply.
