Law, Ethics, and Corporate Governance Paper 2.docx - Running head THE GIG ECONOMY 1 The Gig Economy Jane Solosabal Law Ethic and Corporate Governance

Law, Ethics, and Corporate Governance Paper 2.docx -...

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Running head: THE GIG ECONOMY 1 The Gig Economy Jane Solosabal Law, Ethic, and Corporate Governance – LEG 500 Professor Lateefah A. Muhammad, J.D. Professor Petagaye Fancy, J.D. Strayer University 18 February 2019
THE GIG ECONOMY 2 Memo To: Investment Firm From: Ms. Jane Solosabal Date: 21 February 2019 Re: Uber’s Legal Exposure Principals of an Agency Uber is a principal-agent relationship type of business, which is formed when a person, the principle, authorizes another person to accomplish a task on his or her behalf. The agent’s actions that oblige the principal are a fiduciary in the principal-agent relationship. The law of agency governs the legal relationship, in which an agent deals with a third party for the principal [ CITATION USL16 \l 1033 ]. Normally there are two ways to form this relationship. The first way is express authority, which is where the principal and agent expressly agree to form an agency either verbally or in writing [ CITATION Leg19 \l 1033 ]. The second is implied authority, which results from the agent’s conduct. For instance, an agent is performing a certain task at the time specified; while having a car window placard issued by the principal, may imply that agent is acting on the principal’s authority [ CITATION Leg19 \l 1033 ]. Uber and its
THE GIG ECONOMY 3 drivers use the implied authority. Within the bounds of the relationship, both the principal and agent have duties. The agent’s duties to principal are loyalty, obedience, and care [CITATION Jen16 \p 562-569 \l 1033 ]. The duty of loyalty requires the agent to act only for the principal’s benefit [CITATION Jen16 \p 562-569 \l 1033 ]. In the duty of obedience an agent should follow lawful instructions from the principle [CITATION Jen16 \p 562-569 \l 1033 ]. The duty of care requires agents to act wisely as if they were managing their own affairs [CITATION Jen16 \p 562-569 \l 1033 ]. The principal’s duties to the agent are just as important. Those duties are compensation and indemnification.

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