Running head: THE GIG ECONOMY THE GIG ECONOMY 1 THE GIG ECONOMY 2 INTEROFFICE MEMO To: From: Date: Subject: Uber's legal exposure for the conduct of its drivers. PRINCIPLES OF AGENCY The principal agent relationship is a fiduciary relationship which mainly depends on the trust of the two involved parties where one entity legally appoints another to act on its behalf. In the given case, Uber Company is the principal, and the drivers are he agents acting on behalf of the firm. The agents have an obligation to operate the business with the best interest of the principals while following the general guidance of the set rules and contract by the principal (Bennett, H. N. 2014). The drivers working under Uber, have to abide by the agency principles of discharge of duties with appropriate care and diligence, acting within the scope of authority delegated by the principal and acting with utmost and good faith on behalf of principle. Uber has a contractual relationship with the drivers, and they work under the guidelines of the company, and this shows that the firm is to some extent liable for the actions of the drivers since it might pose as the driver's employer (Dal, P. G. E. 2014). Some of the ways through THE GIG ECONOMY 3 which Uber is directly involved in the running of the business by the drivers include; screening of new drivers, imposing strict standards of conduct and cleanliness to the drivers, dictates the fares charged and payment of the drivers (Uber. n.d.). In an instance where the drivers do not abide by the guidelines set by the company, may result in the driver's termination by Uber. CIRCUMSTANCES UNDER WHICH UBER MIGHT BE LIABLE FOR THE CONDUCT OF ITS DRIVERS. Uber is known for making contention because of its position that it works as a product interface and acknowledges none of the duty regarding occurrences or mishaps that happen when drivers are giving transport to travelers. The Company under no situation acknowledges obligation regarding as well as emerging from the taxi administrations offered by the Service Provider or any demonstrations, activity, conduct, lead, or potentially carelessness concerning the Service Provider Any grievances about the taxi administrations gave by the Service Provider ought to along these lines be submitted to the Service Provider. One of the circumstances under which Uber might be liable for the conduct of its drivers is in a case where the driver acted within the scope of his employment and the wrongful act of the driver occurred while he was performing his job as instructed by the principal (Munday, R. J. C. 2016). Uber signs contract of performance with the drivers and in case the driver's wrongful acts hurt the victim in the line of following the scope of the instructions by the company; then THE GIG ECONOMY 4 Uber will be liable for the wrongful acts of its drivers. This falls under the vicarious tort liability where liability is imposed on an organization or employer in the case where the employee was acting within the scope of their employment (Bermingham, V., & Brennan, C. 2012). STEPS UBER CAN TAKE TO LIMIT ITS LEGAL EXPOSURE FOR THE CONDUCT OF ITS DRIVERS. Thorough screening of drivers to ensure that the drivers recruited to act under the company have the best interest of the company. Through screening of new drivers will help to make sure that the drivers operate with care and have a sense of responsibility which helps to avoid negative behavior which harms the clients. This will help the company to avoid law suits filed by customers who have bad experiences with various Uber drivers. Impose standards of conduct on drivers during their line of duty. The company should ensure that they impose strict standards of conduct for the drivers so that they can remain responsible for their line of duty. The drivers should be aware that they might face harsh consequences for the bad treatment of the clients. The company should introduce the standards on the contracts so that the drivers can agree on them before they take on their duties. THE GIG ECONOMY 5 REFERENCES Bennett, H. N. (2014). Principles of the law of agency. Bermingham, V., & Brennan, C. (2012). Tort law. Oxford: Oxford University Press. Dal, P. G. E. (2014). Law of agency. Chatswood, N.S.W: LexisNexis Butterworths Munday, R. J. C. (2016). Agency: Law and principles Uber. (n.d.). UBER COMMUNITY GUIDELINES. https://www.uber.com/legal/community-guidelines/us-en/ Retrieved from Uber