Law and Ethics in the Business Environment [9 ed.] 130597249X, 9781305972490

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TERRY HALBERT ELAINE INGULLI 9E

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From(engage

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■■■ 1 CE.NGAGELEARNING ■■

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LEGALSTUDIES IN 8US1NUS ACADEMICSFRIES

TERRY HALBERT, J.0.

ELAINE IN

Prof..sorof legalS1udies 1empleU11/ve,ity FoxSchoolof Bu.sine$$ '6-Mm111ge11,ef11

~:: CENGAGE

ULLI,

J.D., LL.M.

f'rofessorEmerilaof 8usi11cst I.aw Ri,hard St0lowStitnm LLC, R.apomlcrrr-llltOmconccalledou~ 'J..ct lh•t girl alone," and stvt"r.11lights wtnt on~ But as more than a half hour pas.srd, none of Lhl' witf1,C$5('$ did anything mo~ The killer had time to driYc away, kaving M$. Gwo,~esccollopsedon tho i11; We C\IR i-, Pro&' .. a sodety if .... sron•• 111U h leew•y .. po551bl• 10 private p~fmonc,,. allowmg pt".opl, (and priv01e•ssoclaiions of pt>oplI price t.ia: $6!.6 billion (whkh, oOcrtu dcdu,,,wn •r< factored In, woukl decrease10 S,,1,1 billion), In ,um, .!though we caJtnotforcn t preciscly,the co""'lui.sprr.sa.nunuK the !Iii on th(' surf.ice to

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~,)usalfl G1lUI.~ of Sr•II Unde~mal.N., Sdm!Mt.tSay;1'',w Y«t 1utltniM.-11 I), 2010 .. AJIW~ Thill Mutllttput It oin ,\by 14,1010. '"'\'tt"l'f ~ gnb\JtQ,Ukrl")'fflrarffOflJ 1;.i~It! tht 8owtbcff at 1hfl rolnL It", DOt rdn·.1ont lo the mpnru.r tt'lon. and miptt ~n ildncl fmm 11.•OoogSuttln. IIP COO, Glob.atF..JJ!kirai,tlft, Jit1dol tlu-lnlr. "'Slrw;e tht htJ111rdnp.,. ~ uld lti impo,wt,1,- to~ 1 pR'(W iwmbn*

""Id.Gd&\. •nmWf'bti•nd Ed Pttklnpoa, "\I.S. C"'IJ~""'"~ Conip,:n(• \\'ont"CUC' N~t Timrt Htpff thM V..bb,;EJ111m1~; TINGIIN4l'&tt.. lu.mlO.l:O10.

o(l.t":alc\\"u lO

L.aw,E1hlct.1 & 8uslnu,

form ,maU dropl.aJ>d ""~ opienllng in 100 cou:nlrie~ tn ,~·en yr.ars, under Browne'sJe-,.dcMip,.sh.a..rt va.luchad Jumptd 80 ptrrnttionaliud. And

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Now let's look .&.thow the company was run 111d h.owii ptrforrMd. ln 2005. a 20,fool gtysc-trolrum•ampaiga 11:nd thr company:Sofficial statnne.nts ,~uing: safety and th.t-prott'ct• ing the-environment amount to little more than empty rhetoric. ln te:rmsof virtur l'thic" 1he11.BP h,. moch to do lo do,e tl1• g•p betweand Its of doing bwfoe ,. And glwn t"- miJcecurhypcrsonn•I uS.rdn>ed a11dresol\'tdprior problem,,and wlw m.oft'ii could/shouJddo. pally.

Ubtr, tlrt! world'i la-~t r,ui compalf)\own; 110 ,~liirlts. Mt·d,ook, tltc ..,-or{ll's most pop1Jlarmtdm owntr; crmta 110 c.onunt Alibaba.ti,~ most wJuablt «tailer; lrasno i,,vctlory. And Airbrtf.\. tJ1t world'sln~r acrommodationpn,~id~r,o,wu '"' ~al rst1.1tt. onr,1h/,ig lnlmsllng Is happe11lng,

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T7u~laborq1tt:J.tion is a,Jdfor a kmg ,_;mrmust W tltt!parammml l'amomic quCJ.ao,r in

tl,;scomrlry. -JUSllCE

WUJS BRANDEJS-190-I'

The •gig cconom)•• or •platform capltall.s.m•t •Td«omrnuting,* '"'rcmott employmc-nt• or '"working in place•? \\re h.a e different n:.me,; for h. but "'e J.11understand th;u thert ore,lgnillc.tnL dll u underw-,y In th• 1wenty-llr t mnury econoniy. N.. rly S4 mmion An1e-:rfQns-morclh.llflll ~rc.::.nto(the tntitt U.S.wurkfor,t-participa,ed in someform of indtpmdtnt ..,,'Ork in 201S. In 201.1t.on:Unrfrttl:a.nc, marU1platt lib! Up,vork. Ont Spart', and Pred.anccr hdpcd thrsc \'1-"CJrkc-rs generatt more th.an I. l triJUon dollars in rc,~nu..-. ·rrchnology drive$ thi$ ntw economy, wilh nearly half or1ht millennial gcncration-

111n.d :;ome 18 pc1'ttnt of older Americnn -u

hig prr,.on11.l u.1,u11)ho:nnrorwork,1

In this hapter,we look ot som• of chewaysthat ""rktn. their o,ganhmtio115, •nd th• C".nlillcsthey \l+-orkfor are bcmg rdmagin~ pn--M!ntingntw ll"g~ and ,thkal chilll,ngA$'f. lt5 01? \Y'()()[)lt.OWWILSON ZlW.l90 (Anh""S.Uflk.cd.,PrltKc1oolmJV,f>f'fff 19..\Jl)(M•ylU, 1919). 'lol lS, 2010by l'.-.l. during whi h limo h• 173 rides, toVerate:sa smartphone app-lication. or ",app: through which pa.s:-54Jngers are matched with neerby drivers who are avalleble t.o transport people in t.he.lr personal automobile-s. Lyft markets itself as •vour friend with a cor: [cite I C.ars lhat tran.spart pns,engers for lyft are easitv recognizable. because lyft gives each driver a •csrstedie" {a big fuuy pink must.ache) to attach to the front of his cer whon U$1ngii 10 give "lyfts."To bee Lyfl driver,• person muo1 download the app, submit his car for lnspcc1lon, undergo some form of background chock, and submil to an in ..person ln.tofView with a lyft roprese.ntative •••• Tho rider uses 11>0 opp 10 hail • ride. LyWssystem lorw,,rds tM request 10 the nearest driv , who Is togged In 10 the app. That driver may t.h n acecpl. d dine, or lgr,ore th ride request.. U 1he driver declines the request or lgnores it ror a sp&c.ried period. Lyft's system sends the r&quast to the next close-st driver who is logged on. II that driver accepts the ride, he is ·mo1ched" wi1h the rider ond gen6rally proceeds to pick het up and drive her to her dos1lt1.al;on.However, the driver may can.eel his ecceptence before picking up the rider~or upon meeting the rider but before commencing the ride. Lvn~s ,elationshlp wlth Its drivers is governed 1n pan by lts Ti rms of Sorvlco, which drlvors must "°""Pt If they wish to givo • Lyfls: Tho Terms of Servlca &ppty 10 both drivers and riders. Under a &action titled -oriver Reprasen1ations and Wamtnties; eac:i, driver agrees that;

• 1,0/$ at I 8$123 roarsold • h.ohas a valid drivers tlc6nsa • ho own, or hM tho'•' right to oparate tha vahiclo and is namod on rh• ltt• suram;a po/fey covaring tho vahrclo • he wfll only use the vahicJo that has ban ror,lsrerod w,'th Lyh

• his vehicle is in good operating condition • ho will nor ..offllr or provide rransporratlon

SfJrvictJs for profit, as a pubUc carrier or taxi service. charge for rides or otherw,'se ssek non-vo,untary compensation fr-om Riders, or engage in any other activity in a manner that is ,nconslstent with such Driver's obliqatfons under thl.sAgreement,. • he ,viii nos offer rides exceeding 60 miles

Elsewhere in the Terms of Service. Lyft dlscJa1mslts '"control over the quality or sare1y of the transporta1ion tha1 occ\Jrs as a result of the Service ... Similarly. in the •umitation of Uability• section. I.heAgreement states that •LYFT HAS NO RESPONSIBILITYWHATSOVERFORTHEACTIONS OR CONDUCT OF DRIVERSOR RIOERS.... •

53

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CHAP'TER2

But 1h Terms of Sorvlco 1 11drfvers 1ha1Lyfl. •rescrvolsl the rlgh, ... to fnves• 1ig '" •nd wmino10Vour portlclpotion In tho Lyft Platform if You .•. behaved in could bo rn that guat8tt• tottd II normal fam wa.smultiplittd rwo or lhro.tt tlmas. The initial draw ro Uber was Iha hexibiliry to create my own schedule. However. earnings are s-lim outside the suggested time frame so I always drove within hour$ proposed by Uber. I couldn"t e11mmoney If I freely organized a $Chedule. In addition, fnc.emiveswere awarded to drivers that worked rho mos, hours, goneraredrho mo.stIncome, a«epuHJ tho moll nu,tte.srs..•nd maim•lntt.d high customer 111,fngs. Compllting for rho bonuso.s was impouJ .. blo w/1hout adhering 10 Ubar recomnt11ndarions. ••• (Tlotal hours worked could be ••• n foctor In evaluating whether a ponlcular wotker was* as a mttuc, of 000r-omlc r ality, on omployeo of a compnny. Tho more a woolders •• these models of the eorporatlon shlft7Whlch sto\el>olde,s benefit and wt,ldl are hamied?

2. What does ha me•n by "tho hopless precariat•? 3. When sued by drivers,. companies lfke Lyfl end Uber have llrgued tl\et tho driv. ers perfor-m 1-erviccs for rlders, bu1 not for 1he company-•en unintcre.sted by1tander orsorts, merely l\.lrnishing e platform that allows drivers end ride,s to connecc: Is tho·t how lyfl and Uber market 1hem1elves1 Is that catogonzation conv-Jnclng7

4. In ii Forbes magazine a:nlcJeabout Airbnb, Tom1o GenJn wrote. •Mllle-nnials, the ascendant economic force in America. llave been culturally programmed to bor• row. rent and share. They don't buy newspapers; they grab al'\d disseminate s:torie-s e la carte vie Facebook andTwftter. Theydon·1 buy OVO sets; they stream shows. Thev don't buy CDs:they •ubrcrlbe to music on servleis right, what impllcetlons does that hove for !ill tho new businus- form1- that Dav;s wrhos about? i ·:

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5. Independent contractors. on-~eallwetters, and workers provided by contracting companies account for 94 percent o·f employmenl growth ovar the past dec.ade. Whet impUcstfons does tha1 have for workeni? i•fi Sourc1t:Eduardo Poner, -rheWOrtersTn.imp forgo,: Now)t)ttT1mo,.1. MaJch 1, 2017.

_•Tom_1o_Got, fromguIperiod r,i,ge from• d•y to might Ube harmful10tho ,tgnor! To • pally conuocd ng , 1h hu? 2. 11,,l