Legal Liability and the Gig Economy

By Support

Legal Liability and the Gig Economy

Uber is 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.

Your boss at an investment firm has asked you to evaluate Uber’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.

Cover page (Interoffice Memo Style)

TO:                  Professor Lori Baggot

FROM:            Your Name Here

DATE:            The date here

SUBJECT:      The Gig Economy

Please review the following website for the heading of your Memo

Please note: Your answer must be based on the law, not on your feeling, biases or sympathy.

This is a resource – you are not required to answer all these questions but your answers should reflect an understanding of all these questions.

  1. Summarize the main principles of agency law as they relate to Uber’s relationship with its drivers. (30%)

Foundation from reading Chapter 16 – Jennings, Marianne. (2018). Business: Its Legal, Ethical, and Global Environment (11th ed.). Mason, OH: Cengage Learning.

  • Examine the Principal-Agent relationship in Chapter 16.
  • Discuss the duties and responsibilities of a Principal and an Agent.
  • Are Uber drivers Agents? If yes, why. If no, why not?
  • Review the law regarding Uber drivers as employees and as independent contractors
  1. Analyze the circumstances under which Uber might be liable for the conduct of a driver who, while intoxicated, caused an accident involving personal property damage and bodily injury. (30%)
  • Explain the law and liability of a Principal for an Agent’s tort.
  • Clearly state whether Uber should be held liable for the drunk driver. If yes, why? If no, why not?
  • Use cases in the textbook to establish the type of relationship between Uber and its drivers, and to support the conclusion of liability.
  • Explain the civil remedies the injured passenger could seek in court.
  1. Identify the steps Uber should take to limit its legal exposure for the conduct of its drivers. (30 %)
  • This is your recommendation section.
  • What type of legal exposure is being limited?
  • Identify legal step Uber can take to limit its legal expose.
  • Think about the Principal-Agent relationship, the Employer-Employee relationship and the Independent Contactor relationship. Which relationship would limit Uber’s exposure?
  • Apply cases from your textbook to support your recommendation.

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, and expert report.  Wikipedia is not accepted.

Reference page examples per SWS

  1. Michael Harvey. 2013. The Nuts & Bolts of College Writing. p. 1.
  1. William R. Stanek. 2010. Storyboarding Techniques chapter in Effective Writing for Business, College and Life. http:// ds-live&scope=site&ebv=EB&ppid=pp_23 3.
  1. Zyad Hicham. 2017. Vocabulary Growth in College-Level Students’ Narrative Writing. login?url= aaf81420&site=eds-live&scope=site

Please review how to cite your references per Strayer Writing Standards link in Blackboard. The following citation will not be accepted: citing a website only as:

 Clarity, writing mechanics, and formatting requirements (5%)

Suggestion on Dos and Don’ts


  • Start your Assignment early (Do not wait to start 48 hours before the Assignment is due).
  • Remember to discuss, and elaborate in your paper.
  • Discuss each question equally – for example do not write 2 pages for question 1, and 2 sentences for question 3.
  • Your discussion should be based on your research of the law and facts.
  • I recommend that you put headings in your paper, so that it is clear where the answers to each question starts and stops.
  • Ensure you submitted the correct paper.
  • Use the help provided to you such as Grammarly and the online tutor.


  • Do not write an announcement in your paper, for example, “In this paper I will discuss the law on agency.” This may increase your SafeAssign score.
  • Do not write the questions verbatim in your paper – (this will increase your SafeAssign score)
  • Do not write about your personal experiences in your paper.
  • Do not use irrelevant diagrams, charts or pictures in your paper.