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). explain whether 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 involvement between the driver and the passenger.One night, a driver who is intoxicated picks up a passenger and then gets into an accident, resulting in the passenger being severely injured.