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Assignment 3: Legal Liability and the Gig Economy

Ride sharing companies are 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.

Widgets operates a ride-sharing business in a small town. Your boss at an investment firm has asked you to evaluate Widget’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.

Write a 3–4 page interoffice memo in which you do the following:

1. Summarize the main principles of agency law as they relate to Widgets’ relationship with its drivers.
2. Analyze the circumstances under which Widgets might be liable for the conduct of a driver who, while intoxicated, caused an accident involving personal property damage and bodily injury.
3. Identify the steps Widgets can take, if any, to limit its legal exposure due to the conduct of its drivers.

Use the Strayer Library to conduct your research. Include at least three quality references. Note: Wikipedia and similar websites do not count as quality references.

Your assignment must follow these formatting requirements:

• This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course.
• Your Memo should be typed, double-spaced, using Times New Roman font (size 12), with 1-inch margins on all sides.
• Cite your references following Strayer Writing Standards. The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
• Your Memo should NOT include a cover page. See the format in guide and expectations. Memo must include a Source page which is not part of the page count requirement.

The specific course learning outcome associated with this assignment is as follows:

• Establish what liability concerns exist for a specific business based on agency law.