Memo
To:
From:
Date:
Subject: conducting evaluation of UBER’s legal exposure to the conduct of its drivers.
In this Memo an attempt is made to analyse the legal exposure of Uber due to the behaviour of its drivers. Prior to understanding the basic principles of an agency some light must be thrown on the concept of agency (Ross, 2015). The concept of agency is basically based upon a special relationship or agreement between the principle and the agent. The heart of the agreement is based upon the fact that there are certain actions which the agent can undertake on behalf of the principle. It is one of the most common features that is being increasingly found in today’s commerce. This is because it allows flexibility of operation as one party can act on behalf of the other in his absence or with due delegation of authority. UBER has established similar relationship with its drivers as they can enter into transaction an agreement with the customers on behalf of the company (Davis, 2015).
It is important to note that the level of authority exercised by the agent on behalf of the principle will determine the extent of liability the principle has to bear with respect to the third parties. In general case the principle will be bound by only those actions of the agent which are within his scope of authority (Ross, 2015). The authority may be actual i.e. expressed or implied or apparent which means that the actions or words of the principle are such that a third party may infer that a separate person has a right to act on their behalf.
It must also be noted that only the principle doesn’t have obligations or duties to fulfil rather there are several duties which the agent must fulfil too. Some of the duties of the agents which ensure the sanctity and authencity of the decisions and actions undertaking by him are as follows:
It can be seen and inferred that while UBER make use of the agents or drivers to conduct its overall business it might release itself from obligations towards the third parties in case the agents do not comply or breach their respective duties which are being entrusted on them by the company (Anderson & Huffman, 2017).
Some of the important points relevant to the concept of agency are:
According to this principle the principle (Uber) enters into an explicit agreement with the agent to perform or participate in a certain task for e.g. taking orders from the customers for the drivers about where to pick and drop them.
According to this principle the principle enters into a certain explicit agreement with the agents (drivers) that in certain cases though the authority has not been transferred to the agents specifically they can infer that the authority for that action or transaction has been delegated to them (Gould, 2017).
According to this principle the principle has no agreement with the agents rather the third party in this case the customers. This principle states that though the agreement is between the agents i.e. the drivers and customers to carry the passengers from one place to another there are certain scenarios wherein the driver cannot disobey the principle (Uber). For instance if the company instructs it to take another route due to bad road condition or traffic jams in the route, the driver cannot disobey the instructions as he is under an apparent agreement with the company.
Under this principle the company will be held liable for the actions of the agent or driver for which the authority was not delegated to him but after obtaining the knowledge about his actions they were ratified by the company (Hemel, 2017). For e.g. the driver drops the customer at a particular location without taking due permission from the company but, later on conveys the information to the company and the same is being ratified by the company. In this case the company is binding towards the action of the drivers as it has ratified the same.
It is expected that the above memo has been able to provide a clear understanding of the legal liability of the company.
Thanking You
References
Anderson, M., & Huffman, M. (2017). The Sharing Economy Meets the Sherman Act: Is Uber a Firm, a Cartel, or Something in Between?.
Conk, G. W. (2016). Deadly Dust: Occupational Health and Safety as a Driving Force in Workers’ Compensation Law and the Development of Tort Doctrine and Practice. Rutgers UL Rev., 69, 1139.
Davis, J. (2015). Drive at Your Own Risk: Uber Violates Unfair Competition Laws by Misleading Uberx Drivers about Their Insurance Covergae. BCL Rev., 56, 1097.
Davis, R. W. (2017). U.S. Patent Application No. 14/822,375.
Gould, W. (2017). The Future of the Gig Economy, Labor Law, and the Role of Unions: How Will They Look Going Forward?.
Hemel, D. J. (2017). Pooling and Unpooling in the Uber Economy. U. Chi. Legal F., 265.
Keeton, R. B. (2016). An Uber Dilemma: The Conflict between the Seattle Rideshare Ordinance, the NLRA, and for-Hire Driver Worker Classification. Gonz. L. Rev., 52, 207.
McPeak, A. A. (2016). Regulating Ridesharing Platforms Through Tort Law. U. Haw. L. Rev., 39, 357.
Paul, S. M. (2017). Uber as For-Profit Hiring Hall: A Price-Fixing Paradox and Its Implications. Berkeley J. Emp. & Lab. L., 38, 233.
Qian, X. (2016). How newspapers present Uber’s government relations in three countries: US, UK and China.
Ross, H. (2015). Ridesharing’s House of Cards: O’Connor V. Uber Technologies, Inc. and the viability of Uber’s labor model in Washington. Wash. L. Rev., 90, 1431.
Ross, H. (2015). Ridesharing’s House of Cards: O’Connor V. Uber Technologies, Inc. and the viability of Uber’s labor model in Washington. Wash. L. Rev., 90, 1431
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