One of the most fundamental issues in business law involves the question of when a company can be held liable for the acts of an individual person, whether this involves a contractual obligation or a personal injury (meaning a tort).Chooseoneof the scenarios below and explain whether or not you think the business is liable for the acts under the principles of agency law.

An entrepreneur decides to open up his own car-for-hire business, and creates an app allowing anyone to connect with people who need a ride.The passengers pay the entrepreneur, who in turn pays a percentage to the driver.Other than the app, the entrepreneur has no other involvement between the driver and the passenger.One night, a driver who is intoxicated picks up a passenger and then gets into an accident, and the passenger is severely injured.