Scenario Facts
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 transporting large groups.
Instructions: Consider the above scenario and complete a 3 to 4-page memorandum of law in which you do the following:
1. Summarize the main principles of agency law relevant to the scenario.
2. Identify and accurately explain the liability to the business in the scenario by considering each of the following factors:
The scope of employment.
Agents acting as an employee versus an independent contractor.
When agents commit an intentional tort versus negligence.
3. Recommend 2–3 significant steps that the business should take to limit its legal exposure related to driver conduct. Support your recommendation.
