The primary principles of agency mostly when the establishment or agreement between two parties

The primary principles of agency mostly when the establishment or agreement between two parties. One party is an agent who acts in favor of the other party which is called the principal. (Jennings, 2018) An agent has rights and responsibilities for allowing the principal duties such as loyalty, obedience, and reasonable care. Duty of Loyalty means that purpose of the agent is to act in the role of the principal. In addition, to prevent any forms of secret profits and other conflicts of interest. Duty of Obedience is where the agent has a duty to accept direction from the principal. Duty of Care, meaning the agent must invest the amount of care like they would manage their own affairs. A principal has agreement with the agent as well, which means that principal gives the compensation, reimbursement of any expenses, and communicate with the agent’s achievements. The principal is also requiring corporation with the agent, so the overall objective is complete.
In Uber’s position, they are declared the principal, and their drivers are nominated as the agents, because agents act on behalf of Uber. Drivers take the role as the agent the principles obligates them to complete their task under the principal. Uber may be liable for the conduct of its drivers. According to the San Francisco Chronicle, Uber may be liable for the accidents that is cause by the drivers who work under the organization, even their contractors. There are certain cases where uber drivers are involves in accidents that leads to injury or death. Even though the agent was the driver, the principal gave the responsibility to work under the organization. In addition, makes uber responsible for any life-threatening event that takes place. Under the circumstances of harming the customers, uber is fully liable for the conduct of their drivers who caused the accident.
Uber can be liable for the conduct of the uber drivers if they do not meet the qualifications and requirements of driving an automobile. There shall be no implied or apparent authority situations. The employee must meet the requirements and qualifications for the organization to succeed in their brand. In my opinion, I think it is best to have a document or electronic agreement for both parties to be aware of the what’s expected from the agent and principal. Uber must obey and address state laws that requires a ride distribution companies to offer insurance, and an option to the driver’s primary insurance coverage. This insurance coverage is enforced when the Uber app is turned on and not just when the drivers are transporting passengers (Vauhini, 2014). Another way uber can limit legal exposure for the conduct for its drivers by conducting a properly training that gives drivers a navigation throughout the city. In addition, take an anger management course whenever the driver is confronted by a distraught customer.

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