1-2 Discussion- Agency
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Southern New Hampshire University *
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Law
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Jan 9, 2024
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Uploaded by BaronNeutron3360
In Chapter 34, read Case 34-2
Doe v. Uber
and discuss the following:
What facts would support the victims' claim there is an agency/employment
relationship between Uber and its drivers? Why does it matter whether the drivers
are considered legal agents instead of independent contractors? Do you believe
that drivers for companies such as Uber are truly independent contractors? Why
or why not. Be sure to define all relevant terms and legal concepts in your
discussion.
Hi Professor and fellow classmates,
In the Doe v. Uber case, rules and regulations established by Uber for the drivers support the
victims' assertion that an agency/employment relationship exists between the company and the
workers. The victims state that the Uber service sets the drivers' prices, and the fares are non-
negotiable. In addition, Uber has the ability to modify charges for a customer, retains control
over all of the customer contact information, and can terminate drivers at will. Furthermore,
Uber requires that drivers accept all ride requests received when logged into the application or
face potential discipline. A principal-agent relationship "typically exists when an employer hires
an employee to enter into contracts on its behalf" (Kubasek et al., 2020). An employer-employee
relationship is established if and when "the employee is subject to the employer's control"
(Kubasek et al., 2020). An independent contractor is "a person who contracts with another to do
something for him but who is not controlled by the other nor subject to the other's right to control
with respect to his physical conduct in the performance of the undertaking" (Kubasek et al.,
2020).
According to Kubasek et al., (2020), exhibit 33-4 indicates that Uber drivers are employees by
the worker being involved in a distinct occupation, are not required to have a special skill, and
are a regular part of the business. When the length of employment varies and payment upon job
completion are material facts, the Uber driver can be considered an independent contractor. After
reading the case details, I believe that the employer is supplying the tools to their drivers;
therefore, it can go either way. The company supplies the Uber application for drivers to pick up
their customers but doesn't supply the car or insurance. Also, the Uber driver doesn't require
supervision, but the service can change the charges to the customer if the driver takes a circuitous
route.
It matters whether the drivers are considered legal agents instead of independent contractors
because if the Uber driver is an independent contractor, then this means that they are not
employees. Therefore, the company is not liable for any damages caused by the contractor's
actions. Instead, the independent contractor would be solely responsible for the damages.
However, the company would be legally liable for said damages if the drivers were employees.
Therefore, I do not believe Uber drivers are independent contractors because even though they
set their own hours, they are still getting paid by Uber and must follow the rules set by the
company.
Regards,
*****
Reference:
Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (2020).
Dynamic
Business Law
(5th ed.). McGraw-Hill Education.
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