Legal Liability And The Gig Economy

In this assignment you analyze a business scenario to summarize the principles of agency law, recommend steps to limit liability, and determine the circumstances under which a business might be liable for employee conduct.

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 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.

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Widgets operates a ride-sharing business with over 100 drivers. Your boss has asked you to evaluate Widgets’ legal exposure for the conduct of its drivers. Several drivers have had accidents, and one driver was arrested for driving while intoxicated when providing a ride for a company client.Widgets has no policy for hiring or checking backgrounds and, for some drivers, allows the use of four company vehicles for .


Consider the above scenario and complete a 34 page memo in which you do the following:

  1. Summarize the main principles of agency law relevant to the scenario.
  2. Identify and accuratelyexplain the liability to the business in the scenario by considering each of the following factors:
    • The scope of employment.
    • Agentsacting as an employee versus an independent contractor.
    • When agents commit an intentional tort versus negligence.
  3. Recommend 23 significant steps that the business should take to limit its to driver conduct. Support your recommendation.

Note:Remember, you are demonstrating your understanding of the law, so explain the law first and thenanswer the questions of the assignment. Be informative and show what you know! Provide references from credible and .


Your memo should:

  • Be typed, double-spaced, inTimes New Roman font (size 12), with 1-inch margins on all sides.
  • Include a source page (not a part of the page count requirement) and have a cover page that uses the following format:


TO: Boss
FROM: Your Name
RE:Legal Liability and the Gig Economy

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