The Gig Economy

The Gig Economy

Summary of the Main Principles of Agency

The purpose of this section of the memo is twofold: to serve as your Introduction (include
historical background of Uber); and to test your knowledge of the Principles of Agency law.
The following are the basic Principles of Agency law:
1. Agency is the fiduciary relationship which results from these preconditions:
(a) the manifestation of consent of one person (principal) that
(b) another person (the agent) shall act on behalf and
(c) subject to the control of the principal, and (d) consent by the agent so to act.
Thus note:
(i) Manifestation of the principal that the agent will act on his behalf. Thus, the agent is
given the authority to act on behalf of the principal.
(ii) Consent by the agent to act on behalf of the principal.
(iii) The agent must be subject to the control of the principal.
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2. LIABILITY OF PRINCIPAL TO THIRD PARTIES IN CONTRACT:
BASIC PRINCIPLES:
(a) Principals are liable to third parties for contracts entered into by their agents when acting
with authority, whether or not disclosed, or under estoppel.
(b) Agent’s authority to bind the principal in contract:
ACTUAL Authority:
(i) Express Authority
(ii) Implied Authority
(iii) Apparent Authority – based on Principal’s manifestations to third parties
3. LIABILITY OF PRINCIPAL TO THIRD PARTIES IN TORT
(i) Principals are liable for torts of their agents and servants.
(ii) INDEPENDENT CONTRACTORS
Independent Contractor is not subject to principal’s controls over the physical conduct of
the task. For this reason, the principal and agent relationship does not exist between the
principal and agent relationship does not exist between the principal and independent
contractor. Under such circumstances, the principal is not responsible and held liable for
the alleged negligence for the independent contractor.
Analysis of the Circumstances under which Uber might be liable for the conduct of its
drivers.
In this section use your knowledge of the above main principles of agency law to advise the
investment firm general manager regarding the circumstances under which Uber might be liable
for the conduct of its drivers.
Identification of the steps Uber can take to limit its legal exposure for the conduct of its
drivers.
This is the last section before the reference page of your memo. Again, use the knowledge you
have gained from the agency principles to identify the steps Uber can take to limit its legal
exposure for the conduct of its drivers. Uber would be required to give public notice regarding
steps it can take to limit its legal exposure for the conduct of its drivers.
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Recommendations
Your memo must provide recommendations based on your overall analysis.
References
Follow instructions regarding the number and quality of references

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