Week 7 Assignment LEG500

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Strayer University *

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500

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Jan 9, 2024

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Week 7 Assignment: Legal Liability and the Gig Economy Monique Powell LEG500: Law Ethics and Corporate Governance Professor Lori Baggot November 18 th , 2023
To: Professor Baggot From: Monique Powell Re: Legal Liability and the Gig Economy assignment, Week 7 Date: November 18, 2023 Overview A gig economy is a labor market for short-term contract or freelance work instead of permanent jobs. This is a labor market where employees do not work as permanent employees. Gigs main challenge is the lack of job security. This is inconsistent work. There is no steady stream of income or benefits in the gig economy. This memo will be focused on Widget, a ride- sharing business with over 100 drivers. Agency Law Agency law is common law that controls relationships between an agent and their principals. The principle of this law is for the agent to act in the best interest of the client. The company as a ride-sharing business can have a complex relationship between the company and the driver. The driver can be an independent or employee contractor. In this business as an employee the company can be held responsible and as an independent contractor, the driver can be held responsible because they are not under the company. Drivers should be classified as independent contractors so that the business will not be held liable for the actions of the drivers.
Widgets Responsibility Widget is responsible for the conduct of the drivers that are working under them in contract if the drivers are considered employees. Widget can be liable for hiring employees under negligence. They should properly screen drivers before hiring them under contract for their business. This could include failure to conduct a background check, drug test, and even checking precious driving records. Widget is responsible for supervising all drivers and their driving patterns. If they fail to do so, that would be negligent supervision. Supervision under negligence could be failure to train, failure to monitor driving habits, and failure to act when concerns are raised about driver's safety. Widget could also be held responsible for the conduct of its drivers. Several drivers have had accidents, and one driver was arrested for driving while intoxicated, which indicates that they are not taking sufficient actions to protect their customers and businesses. Policies to Implement Widget should execute a thorough hiring and background check policy for all drivers who wish to drive for them. With this policy in place, it will catch all previous wrongdoings and prevent the company from placing someone behind the wheel of their business and causing safety concerns with customers. When background checks are done, it helps the company learn more about the person's history and identity. If they did background checks they wouldn’t hire someone who has a history of drinking and driving. Safety Measures and Actions
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Training is important when you start any job. Providing adequate training for all drivers, informing them of all safety procedures and precautions. This will cover the supervision negligence by ensuring all employees are trained properly and aware of all rules, regulations, and safety. Keeping a daily monitor on drivers' driving habits and taking immediate action when there are safety concerns will help keep Widget covered. There should be a policy on drug and alcohol use that all employees must follow and sign. Each driver should be responsible for having liability insurance in case of an incident. This takes the liability off the company, places it on the driver, and protects the business. Reputation Reputation is a big key when it comes to businesses as well. Risks arise when you are not represented in a positive way. Customers should be protected in a business and if Widget does not take the proper actions to protect its customers, it can face reputation risk. New customers are less likely to come when a company has a bad reputation. Widget should take all risks seriously and always implement policies to protect their customers.
Sources: 1. Roger L. Miller. 2022. Business Law: Text & Cases – Commercial Law for Accountants, 12th edition. 2. Marianne M. Jennings. 2022. Business: Its Legal, Ethical, and Global Environment. https://strayer.vitalsource.com/reader/books/9780357447789/pageid/16 .