Professional Documents
Culture Documents
Section Page #: Table of Content
Section Page #: Table of Content
Section Page #
Executive Summary 3
Key Recommendations 3
Introduction 4-7
Bibliography 42
Executive Summary:
This report will analyze the Terms and Conditions of the service agreement policy for the service
of Uber, or other related services including all the elements associated with its usage subject to
Ontario law. The purpose of this report will be to explain all the application of all the legal
concepts covered in class to the term paper and propose recommendation regarding the legal
issues. The Terms and Condition are roughly eight pages long and are full of technical words
that the average person would not understand without further knowledge. For this reason, the
paper will also aim to better define the consequences and legal applications in the case of
Key Recommendations:
• Uber should put more effort towards informing their customers of the consequences when
• Uber should be more thorough in ensuring the customer is fully aware of the price they
are paying for the Service, especially in the case where the fare surge has been applied.
• Uber should add more barriers to their screening process that can reliably and fairly
• Uber should define the standards for what they believe an adequately clean car is.
Introduction:
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In a world where people are connected with one another almost constantly from anywhere in the
world, one’s image is almost constantly being monitored by someone. Whether it is a friend
recording you embarrassing yourself, or an old Facebook status that was posted years ago, the
way that people act and speak rarely go unnoticed. This statement is even more true when it
comes to the image of a company or organization, especially the larger ones like Uber. It only
takes one simple mistake to ruin the reputation of one of these companies and completely tarnish
whatever status they had in the business world. This is why it is essential to fully understand the
extent to which a person or organization is protected from legal liability in the case of an issue
arising.
The Terms and Conditions of a contract are the rules by which one must agree to abide in order
to use a service. Generally, most people see the Terms and Conditions of a contract and
immediately overlook them and assume that they will never affect their use of the Service.
Unfortunately, this is not the case for everyone as some consumers run into situations where the
clauses of the Terms affect their issue that they are experiencing with the Service. This paper
will be focusing on analyzing the Terms and Condition that all Canadian Uber customers must
agree to when signing up for the Service. The purpose of this paper is to extensively explain all
the legal aspects and find any ethical issues that are within Uber’s Terms and Conditions for
Canada.
Before diving into the Terms of Conditions, let’s take a quick look at the history of Uber and
how it became the company it is today. Uber is a transportation technology company that
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operates in over 600 cities worldwide. They have two main application, Uber (the transportation
and logistics app) and UberEats (the food transportation app). The company uses Third-Party
Providers as there means for getting the desired object or person from one location to the next.
This means that Uber deals with both the Third-Party Provider and the user in order to provide
their service. The use of the Third-Party Provider has made Uber subject to several different
forms of protests and legal actions. For this reason it is extremely important that Uber has clear
Before gaining access to the Service, the consumer is presented with the Terms and Conditions
of the contract. Majority of consumers are simply trying to gain access to the Service
immediately, so they disregard the Terms and simply agree without fully reading and
understanding what they are agreeing to. This paper aims to give a simpler explanation of the
Terms and to also find any ethical or legal issues. When looking at these Terms and Conditions
there are very common aspects that can be found in the Terms and Conditions of other contracts.
This isn’t surprising considering the purpose of these Terms are set out so that all parties
This paper contains a full summary and explanation of every section of the Terms and
Conditions. Each section was extensively read and examined, and then fully summarized in the
section titled “description”. After the description section follows the application of all legal
principles learned in class and where these principles can be found in the agreement. Following
that is the recommendation which covers whatever lessons were learned through the completion
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of this paper. Lastly, the final section will be the application of the agreement with the problem
In business, there are several examples of companies taking advantage of customers and
conducting their business unethically. These companies are able to find flaws in contracts and
legal loopholes in order to find different ways of protecting themselves from paying. Businesses
will do just about anything that has not been declared illegal in order to save money, destroy the
competition, and have the best service or product available. However, in certain cases the
government will intervene and declare or modify a policy that will prohibit set unethical action
by the business. While studying the Terms and conducting research on stories related to
scenarios such as this, a legal and ethical issue regarding a tool Uber produced for its drivers was
identified. The tool that Uber used is referred to as “Greyball” software and it was used to
identify and deny service to certain riders, particularly the ones Uber suspected of violating its
Terms. The Greyball software was also used to help their drivers evade local government
authorities in certain countries where the Service was not legitimized yet. This goes without
saying that this is extremely unethical and put Ubers reputation with local government
authorities at risk.
Uber developed the Greyball software to identify users of the app who Uber suspected of
improperly using its service. The software was said to be used as early as 2014. Uber claims that
the software can essentially hide the typical app view for riders, allowing Uber to show that rider
a different version (Isaac, M. 2017). It is said that Uber developed and used Greyball to deny
services to consumers who under suspicion of violating the Terms and Conditions of the service,
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such as people ruining the vehicle of the driver, harm the driver, etc. To Uber’s credit it is not
unfair to assume that some people are using the app for the intention of violating the Terms,
especially considering that Uber has almost completely destroyed its competition. Taxi drivers
have lost a considerable amount of business since the launching of Uber, as the company
essentially provides the same service as Taxi-Cab companies except Uber’s service is cheaper,
more efficient, and more reliable. There are multiple cases of taxi drivers displaying their
displeasure with Uber through protests, rallies, and sometimes even harmful acts directed
towards the Third-Party drivers. With that in mind it makes sense that Uber would develop a
software such as the Greyball software in order to protect their Third-Party drivers from any
unnecessary harm or conflict. This however does not give Uber the green light to use this
This paper will look at the legal aspects of the Greyball software and where they land legally and
ethically in the eyes of Ontario law. To do this the Terms and Conditions of the service will be
assessed to see if there is any section that addresses scenarios such as the Greyball software. In
the sections that do address these scenarios we will analyze how Uber protect themselves and the
Third-Party Providers. It will be determined if this scenario is truly a legal issue or if it is simply
an ethical issue.
Description:
In this section, we will examine the specific clauses of the Terms that Uber users consent to once
they decided to use the app, and what each segment means. The Terms is divided into seven
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segments as followed; Contractual Relationships, The Services, Your Use of The Services,
Other Provisions. These clauses are usually glanced over at best, most people don’t even take the
time to read them and simply agree assuming they will not be placed in a situation where these
clauses will apply. It is typically these clauses in Termss where people struggle to understand
exactly what is being said when agreeing to the Terms through using the service. Often, these
sections have hidden meaning, subscripted text, and other means of deceiving individuals who
may not have been trained in examining complex legal documents. The overwhelming amount of
information that is presented to these users of the service deters them from becoming informed
Before being permitted to use the service offered by Uber, the user is presented with a contract
that they must agree to in order to be granted access to the service. The first line that people see
when looking at the Terms is “PLEASE READ THESE TERMS CAREFULLY BEFORE
ACCESSING OR USING THE SERVICES”. This is an extremely key part to the Terms as it
sets the tone for the users to be responsible for what they are agreeing to before using the service.
This is useful for Uber because should a user claim that they did not understand or read the
Terms before agreeing, their argument would become null as Uber has already instructed them to
ensure they understand the Terms. This makes sense seeing as how the Terms is made to protect
Uber from the customers trying to receive compensation if there is an issue that arises with the
service.
Contractual Relationship:
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This segment of the Terms states that if the user choses to use the service provided by Uber than
you are obliged to agreeing to the Terms that Uber has set out. If you do not agree to the Terms
than you are not permitted to using the service. This is a key part to the Terms as it allows Uber
to claim that you have agreed to the Terms through using the service. These Terms take the place
of any previous agreements or arrangements with you and Uber can terminate the Terms or any
service with respect to the user, at any time for any reason. This is to say that Uber is not obliged
to provide the service they offer and that it is a privilege for those who respect their Terms and
Conditions. The Terms that are provided in addition to what is already present can apply to
certain services, such as Events and Promotions. These Events can include any and all different
service options that are offered with relation to the original service. These additional Terms will
be fully disclosed to the user, meaning that the Terms will be available before the user decides
whether to use the service. The additional Terms will be deemed a part of the Terms for the
purpose of the applicable service and will have more power than the current Terms in the event
of a conflict between the two. Meaning that new Terms can be applied when Uber is offering a
different service than the commonly offered one such as Uber Eats, Uber XL, Uber Black, etc.
Uber may change the Terms related to the service from time to time when required. The changes
are made effective once Uber has sent out the updated Terms and Conditions. Once you use the
service after such changes have been posted then you are agreeing to the changed Terms. The
Terms states “Uber may provide to a claims processor or an insurer any necessary information
(including your contact information) if there is a complaint, dispute or conflict, which may
include an accident, involving you and a Third Party Provider (including a transportation
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network company driver) and such information or data is necessary to resolve the complaint,
dispute or conflict”. This is essentially saying that if an issue arises that Uber is obligated to
resolve than they may provide certain personal information that will help resolve set issue. For
example if the Uber driver were to get into an accident, than Uber would have no choice but to
disclose all the necessary information with regards to the accident to the police and the insurance
company.
The Services:
This segment of the Terms discusses what is provided with regards to their service and what they
are and aren’t able to control. This segment is split up into the subsections of License,
Restrictions, Provision of the Services, Third Party Services and Content, and Ownership. The
service offered is a technology platform that allows the users of Uber to arrange and schedule
transportation as well as logistics services with independent third party providers. These third-
party providers are held accountable under the agreement with Uber known as “Third Party
Providers”. One of the specific things that Uber states with regards to their service is that unless
otherwise agreed to by Uber, the service is made available for your own personal use and not for
commercial use. This segment of the Terms states “YOU ACKNOWLEDGE THAT UBER
Meaning you are agreeing that Uber is not a transportation provider and that all transportation
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and logistics services are provided through third party contractors who are not affiliated with
Uber. This allows Uber to not be held to the same standards as transportation companies, such as
taxicab companies.
License:
This subsection states that if you are in agreement with these Terms, Uber allows the user a non-
exclusive, non-sublicensable, revocable, non-transferrable license to access and use the app on
their mobile device. As well as access to any information or materials that is made available
through the Services. The license is strictly for personal, non-commercial use, meaning they are
not offering the service to any companies that would gain revenue from the use of Uber’s
service. Lastly this subsection states that any rights not expressly granted herein are reserved by
Restrictions:
This subsection covers all the constraints that are associated with the Service. When using the
Service any of the current copyrights and trademarks are solidified with the service and cannot
be removed under any circumstances. You may not “reproduce, modify, prepare derivative
works based upon, distribute, license, lease, sell, resell, transfer, publicly display, publicly
perform, transmit, stream, broadcast or otherwise exploit the Services except as expressly
permitted by Uber”. This is to say that you may not breakdown the different functions that are
put together to form the Service, and you may not create a service that is similar to that of
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Uber’s. You cannot launch a program that will tamper with the use of the service or hinder the
ability of the service in any way. The Service is the property of Uber and you are not permitted
to gain unauthorized access or impair any aspect of the Services of its related systems or
network.
This subsection covers all the other that portions of the Services that may be made available
under Uber’s various brands or request options associated with transportation or logistics. This is
“UberEXEC,” and “UberLUX” and the logistics request brands currently referred to as
“UberRUSH,” “UberFRESH” and “UberEATS”.” This subsection also states that the Services
may be made available under such brands or request optinos. This include “(i) certain of Uber’s
subsidiaries and affiliates; or (ii) independent Third Party Providers, including transportation
transportation permits, authorizations or licenses”. This allows third party taxi companies to use
Uber’s system in order to gain more business, while still operating in their personally marked
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This subsection states all the different clauses that the user is agreeing to with regards to the
Third-Party Services that is involved. It states that the service can be made available through the
connection of third party services and content that is in control of the respective Third Party. The
user is aware that there are other terms of use and privacy policies that may apply to your use of
Third party services and content. Uber is not responsible for the service and content provided by
Third party services and content. The companies Apple Inc., Google, Inc., Microsoft Corporation
or BlackBerry Limited are all companies that are beneficiaries of the service whenever provided
under their respective product. This is to say that if someone uses the Service on an Iphone, than
Apple would be receiving compensation for making the service accessible on their device. These
third party beneficiaries are not responsible for the upkeep and customer support and each third
party decides how much access you have to the service and the limit of usage of the service.
Ownership:
This subsection states that “the Services and all rights therein are and shall remain Uber’s
property or the property of Uber’s licensors. Neither these Terms nor your use of the Services
convey or grant to you any rights: (i) in or related to the Services except for the limited license
granted above; or (ii) to use or reference in any manner Uber’s company names, logos, product
and service names, trademarks or services marks or those of Uber’s licensors”. This is essentially
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This segment of the Terms discusses what is provided with regards to the Service and what Uber
is unable to control. This segment is split up into the subsections of User Accounts, User
Requirement and Conduct, Text Messaging, Promotional Codes, User Provided Content, and
User Accounts:
This subsection discusses what Uber requires from the users to make an account. First and
foremost, in order to gain access to majority of the Service, Uber requires that you register and
maintain an active personal user account (Account). To make an Account Uber asks that you be
at least 18 years of age, or the age of legal majority in your jurisdiction (if different than 18), to
obtain an Account. This ensures that all users with an account are at the age where they are no
longer considered a minor and can be treated like an adult in the eyes of society. The registration
process requires you to give personal information to Uber, such as your name, address, mobile
phone number and age, as well as at least one valid payment method (this allows Uber to ensure
you are financially capable of paying for the service). Uber asks that you agree to maintain
accurate and up-to-date information in your Account. If the user is unable to meet set request
than it could result in the restriction of accessing the Services or Uber’s termination of these
Terms with the respected user. This is to say that if a user has an expired payment method on file
then they will be denied access to the service. Lastly the respected user is responsible for all
activity under their Account and agree to ensuring the security of the Account’s password and
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User Requirements and Conduct:
This subsection discusses what Uber requires from the user when using the Service. It begins by
stating that the Service is not available for any persons under the age of 18, and that the owner of
the account is not permitted to authorize third parties, or persons under the age of 18 to use of
their account, unless they are accompanied by the account owner. The owner of the account is
not permitted to transfer ownership to any other person or entity. The subsection later states that
the user agrees to comply with all applicable laws when using the Services, and that the user may
not use the Service for the transportation of unlawful or hazardous material. The user will not
cause nuisance, inconvenience or property damage to any party associated with the service. In
certain situation Uber may ask the user to provide proof of identity to access or use the Services,
and you agree that you may be denied access to or use of the Services if you refuse to provide
proof of identity.
Text Messaging:
This subsection states that when you create an Account, you agree that the Service may send you
SMS messages to resolve normal business operations of your use of the Service. Any user has
the ability of opting out of receiving SMS messages from Uber by following the instructions
found on the Uber website. By opting out, you acknowledge that this may impact your use of the
Service.
Promotional Codes:
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This subsection discusses the creation of promotional codes that are redeemable for Account
credit, or other benefits that are related to the Service. The subsection states all users agree that
Promo Codes: (i) must be used for the intended purpose in a lawful manner, (ii) may not be
transferred, sold, or duplicated in any manner, (iii) may be disabled by Uber at any time for any
reason, (iv) may only be used to the specific terms that Uber establishes for the respective Promo
Code, (v) are not valid for cash, and (vi) may expire prior to use. The subsection is topped off
with the statement “Uber reserves the right to withhold or deduct credits or other features or
benefits obtained through the use of Promo Codes by you or any other user in the event that Uber
determines or believes that the use or redemption of the Promo Code was in error, fraudulent,
illegal, or in violation of the applicable Promo Code terms or these Terms”. This statement
allows Uber to remove a Promo Code if used in a way that goes against what is lawful, fair, and
Uber may permit users from time to time to submit any information through the Services textual,
audio, and/or visual content. This included feedback and commentary related to the Service, the
use of support request, and any form of entries for competitions and promotions. By providing
User Content to Uber, you allow Uber a license to distribute, replicate, copy, publicly display
and otherwise exploit in any manner such User Content in all distribution channel, without
further notice or consent from the user and without the requirement of payment to you or any
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This subsection states that the user is the representative and owner of all User Content or the user
has all rights, licenses, and consent to grant Uber the license to the User Content. Neither the
User Content nor your uploading, or otherwise making available of such User Content will
violate a third party’s intellectual property or proprietary rights, or rights of publicity or privacy,
or result in the violation of any applicable law or regulation. The subsection states “You agree to
not provide User Content that is defamatory, libelous, hateful, violent, obscene, pornographic,
unlawful, or otherwise offensive, as determined by Uber in its sole discretion, whether or not
such material may be protected by law. Uber may, but shall not be obligated to, review, monitor,
or remove User Content, at Uber’s sole discretion and at any time and for any reason, without
notice to you”. This is to say that all User Content must be reasonable and refrain from obscene
information, and that Uber may but is not obliged, to review set User Content and decide what to
This subsection states that the user is responsible for obtaining the data network access necessary
to use the Service. When using the service the user’s mobile network data fees may apply if the
Service is accessed or used from a wireless-enabled device. The user is responsible for set rates
and fees that apply. The user is also responsible for acquiring and updating compatible hardware
or devices necessary to access and use the Services. Finally Uber does not guarantee that the
Services will function on any particular hardware or devices. In addition, the Services may be
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subject to malfunctions and delays inherent in the use of the Internet and electronic
communications.
Payment:
This segment of the Terms discusses the procedure of paying Uber and third-parties, for the
Service. The user is aware that the use of the Services may result in charges to you in proportion
to the service you receive from a Third-Party Provider. After receiving services or goods
obtained through the use of the Service, Uber will act as the middle man between payment from
the user and the receivables of the Third-Party Provider. This means that Uber will receive
payment from the user and then pay the applicable charges on behalf of the Third-Party Provider.
Payment of applicable charges in this manner will be the same as payment directly from the user
to the Third-Party Provider. All charges will have the appropriate applicable tax required by law.
These charges considered to be non-refundable, unless otherwise determined by Uber. The user
has the right to request lower charges from a Third-Party Provider at the time the user is
receiving such services or goods. Uber will respond accordingly to any request from a Third-
Once the Service has been provided to the user all charges are due immediately and payment will
be facilitated by Uber using the defaulted payment method determined by the user’s Account,
after which an email receipt will be delivered to the user’s email which they provided. If the
otherwise not able to be charged, the user agrees that Uber may, as the middle man between the
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user and the Third-Party Provider, use a secondary payment method if available in the user’s
account.
Uber reserves the right to establish, remove and/or revise Charges for any or all services or
goods obtained through the use of the Services at any time in Uber’s sole discretion. The user
also agrees that charges applicable in certain geographical areas that are experiencing a high
demand at the time may increase until demand drops. It is the responsibility of Uber to inform
users of Charges that will apply, provided that the user agrees to be responsible for Charges that
are obtained under the user’s Account regardless of if they are aware of such Charges. Uber may
from time to time provide certain users and geographical areas promotional offers and discounts
that can result in different amounts charged compared to the usual amount for the same service.
The user agrees that these promotional offers and discounts, unless currently being used by the
user, shall have no importance in regards to whether or not you will use the Service or the
Charges applied. You may cancel your request for services from a Third-Party-Provider at any
time prior to such Third-Party Provider’s arrival to the destination specified, in which case you
The payment structure that Uber has in place is meant to compensate, in full, Third-Party
Providers for the Service. Uber does not give any portion of the user’s payment as a tip or
through the Service. Third-Party Providers do not receive any additional amount from Uber
beyond those described above. The user understands and agree that, you can provide additional
payment as a tip to any Third-Party Provider who provides you with the Service, however you
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are under no obligation to do so. Tips and gratuities are completely up to the user’s decision.
After you have received services or goods obtained through the Service, you will have the
opportunity to rate your experience and leave additional feedback about your Third-Party
Provider.
This subsection of the Terms discusses what the user is responsible if they cause damages to the
vehicle which require repair or cleaning. The user shall be responsible for the cost of repair for
damages and/or cleaning of the Third-Party Providers vehicle and property. This is only if it is a
result from the use of the Service under the respected user’s Account, and if the damage exceeds
the normal “wear and tear” damages or necessary cleaning standards set by Uber. In the instance
where a Third Party Provider reports the requirement for Repair and Cleaning, and such Repair
or Cleaning request is approved by Uber’s reasonable discretion, Uber will ensure that they
finance the payment for the cost of such Repair or Cleaning as a representative of the Third-Party
Provider using the designated payment method defaulted on the user’s Account. This payment
will be transferred by Uber to the applicable Third-Party Provider and are non-refundable.
This segment discusses all the different legal liabilities and responsibilities between Uber, the
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DISCLAIMER:
The Services are provided “as is” and “as available.” The disclaimer states “Uber disclaims all
representations and warranties, express, implied or statutory, not expressly set out in these terms,
including the implied warranties or merchantability, fitness for a particular purpose and non-
reliability, timeliness, quality, suitability or availability of the services or any services or goods
requested through the use of the Services, or that the service will be uninterrupted or error-free.”
The disclaimer also expresses that Uber does not confirm the quality, suitability, safety, or ability
of Third-Party Providers. The user agrees that all risks associated with the use of the Service
remains solely with the user to the maximum extent permitted under applicable law.
LIMITATION OF LIABILITY:
This subsection of the Terms begins with a statement written in all capitals stating “UBER
UBER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. UBER SHALL
NOT BE LIABLE FOR ANY DAMAGES, LIABILITY OR LOSSES ARISING OUT OF: (i)
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YOU AND ANY THIRD PARTY PROVIDER, EVEN IF UBER HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES”. This statement is essentially saying that Uber is
not responsible for any damages, lost profit, and damages related to the use of the Service. The
subsection continues to state that the user is aware that the Third-Party transportation providers
may offer ridesharing transportation and may not be professionally licensed or permitted. In no
case will Uber’s total liability to the user in connection with the Service for all damages and
losses exceed five hundred Euros. The Service may be used by the user to request transportation
or logistics services with the Third-Party Provider so long as the user agrees that Uber has no
liability related to any transportation or logistics services provided by the Third-Party Providers
other than what has been stated in these Terms. Lastly this subsection states “THE
EXCLUDED UNDER APPLICABLE LAW”. This can be interpreted as Uber saying that the
Limitations and Disclaimers in this section will not falsely limit liability or change your
Indemnity:
This subsection of the Terms discusses legal responsibility between Uber, the user, and Third-
Party Provider. The user agrees to secure Uber and its officers, directors, employee and agents
from any legal responsibilities such as claims, demands, losses, liabilities, and expenses. This is
only if it is in connection with the users use of the Service, their breach of any of the stated
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Terms, Uber’s use of your User Content, and/or the user’s violation of the rights of Third-Party
Providers.
Unless otherwise stated in these Terms, these Terms shall be solely governed by you and
interpreted in accordance with the laws of The Netherlands, other than its rules on conflicts of
laws. The Vienna Convention on the International Sale of Goods of 1980 (CISG) shall not apply.
Any issue, complaint, conflict arising out of connection with the Service or the Terms shall be
Mediation Rules (“ICC Mediation Rules”). If a dispute under ICC Mediation Rules has not been
handled with sixty days after a request for mediation has been submitted, the dispute will be
resolved through arbitration under the Rules of Arbitration of the International Chamber of
Commerce (“ICC Arbitration Rules”). The ICC Rules' Emergency Arbitrator provisions are
excluded. The dispute will be remedied by a single arbitrator to be assigned in accordance with
the ICC Rules. The places that conduct both arbitration and mediation are Amsterdam, The
Netherlands, without prejudice to any rights you may have under Article 18 of the Brussels I bis
Regulation (OJ EU 2012 L351/1) and/or Article 6:236n of the Dutch Civil Code. When
performing the mediation and/or arbitration the language to be chosen shall be English, unless
the user does not speak English, in which case the mediation and/or arbitration shall be
performed in both English and the user’s native language. The information (documents and
briefs submitted by both parties, and orders and awards issued) and presence of the mediation
and arbitration proceedings will be kept in strictly confidential and will not be disclosed to any
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Third-Party. The only way one could gain this information is through the expressly written
consent from the other party unless the disclosure is required in the context of the mediation or
Other Provisions:
This subsection states that any claims of copyright infringement should be sent to Uber’s
designated agent. The company asks that you visit their web page
Notice:
This subsection states that Uber may provide the user with a notice through a general notice on
the Services, electronic mail to the email address provided in the user’s Account, or by a written
letter sent to the user’s address provided in their Account. The user may give notice to Uber by
written communication to Uber's address at Vijzelstraat 68, 1017 HL, Amsterdam, The
Netherlands.
General:
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This subsection states that the user may not transfer or assign these Terms without Uber’s prior
written approval. The User consents to approving Uber for it to transfer or assign these Terms in
whole or part
You give your approval to Uber for it to assign or transfer these Terms in whole or in part,
including to: (i) a subsidiary or affiliate; (ii) an acquirer of Uber’s equity, business or assets; or
exists between you, Uber or any Third Party Provider as a result of the Terms between you and
If any provision of these Terms is held to be illegal, invalid or unenforceable, in whole or in part,
under any law, such provision or part thereof shall to that extent be deemed not to form part of
these Terms but the legality, validity and enforceability of the other provisions in these Terms
shall not be affected. In that event, the parties shall replace the illegal, invalid or unenforceable
provision or part thereof with a provision or part thereof that is legal, valid and enforceable and
that has, to the greatest extent possible, a similar effect as the illegal, invalid or unenforceable
provision or part thereof, given the contents and purpose of these Terms. These Terms constitute
the entire agreement and understanding of the parties with respect to its subject matter and
replaces and supersedes all prior or contemporaneous agreements or undertakings regarding such
subject matter. In these Terms, the words “including” and “include” mean “including, but not
limited to.”
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In Canada the body of law which governs the country is known as the common law system. The
common law system is a systematically organized collection of rules of legislation. This body of
law uses case law and legal precedent to reach conclusions regarding conflicts, disputes, or other
legal issues. There are general principles of law which are used to explain what the common law
is stating. These general principles evolve over time to cover all aspects of the law as more and
In order to better understand how the Terms that Uber uses to protect themselves works, it is
crucial that the user understands what a legal principle is, and what that means in the common
law system.
In the Business Law class with Gilles Levasseur, we discussed several examples in class that
relate to many of the issues that have been discussed above. One of the main themes that was
covered in class is the concept of protecting one’s self from any and all legal liability. The legal
document provided by Uber is a great example of this concept. This concept is probably one of
the very first things a company would put in place before launching their Service. It is clear
when looking at the Terms that Uber is trying to protect themselves as the first thing when
reading the terms is “PLEASE READ THESE TERMS CAREFULLY BEFORE ACCESSING
OR USING THE SERVICES”. This first statement of the Terms puts the onus on the user to
make sure that they did their duty to read through the Terms of the Service that is being
provided. This protects Uber from consumers claiming that they were not made aware of the
Terms and Conditions, and ensures that everyone is held accountable. This is an important aspect
for the Service to succeed, because if those working for Uber were not legally protected from
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any legal proceedings, fewer people would look at Uber for their choice of job. If someone were
asked to do something that is not within a person’s responsibilities than that person should reject
the assignment. The reason behind this is because if someone were to cause an error that results
in someone being negatively affected than that person is liable for the error. It may be
unfortunate but there are reasons that employees are meant to handle certain tasks because they
One of the most crucial legal principles covered in Uber’s Terms is liability. Liability refers to
the legal responsibility for someone or something. For example as a person in day-to-day life, he
or she is responsible for knowing the way the street signs and lights work, meaning if someone
were to be hit by a car when set person wasn’t supposed to be crossing then the person crossing
is legal liable for the accident. Liability is one of the more important aspects in legal language
because one of the sole reasons of Terms are to protect one’s self, and in order to fulfill that
objective one must know exactly what and who they are responsible for. For this contract Uber is
ensuring that they have no liability when consumers are using the Service in terms of
transportation and logistical services. There are three forms of liabilities in law being legal
liability (legal obligation to pay debts), public liability (the tort which focuses on civil wrong
doing), and product liability (the liability that manufacturers and suppliers take on in the case
When looking at this contract, Uber is focusing on protecting themselves from both legal and
product liability. This is the case because these two forms of liability are the predominant types
of claims that a consumer can make towards the company. For example, it could be predicted
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that a consumer would claim that they experienced emotional or compensatory damages as a
result of not being driven to their destination in a timely manner which made the user miss
something important. The user may feel as though Uber is responsible for this mistake and
should compensate for whatever distress was caused. It is for that reason that the ride sharing
company must ensure that the Terms completely covers them of all damages.
The concept of damages also applies heavily to the Terms that Uber provides. There are four
types of damages that were discussed in class: punitive damages, (damages exceeding simple
compensation and awarded to punish the defendant), aggravated damages (when a person’s
conduct amounts to tortious conduct subjecting the plaintiff to humiliating and malicious
circumstances), pecuniary damages (loss of future income), and non-pecuniary damages (pain
and suffering or loss of life). Uber uses their Terms as a way of ensuring that they are legal
covered for all of these types of damages. For example, a consumer gets injured through the
reckless acts of another driver on the road while using the Service. Clearly people can be
physically injured while being a passenger in a car as there are many different factors that affect
the conditions of a drive. There could be extreme weather conditions, reckless drivers, destroyed
roads etc. The importance of the Terms comes to light when understanding that these factors
could lead to any one of the types of damages listed above. Another common example of Uber
needing to protect themselves against aggravated damages is when a customer gets into a car
accident and they claim that they are forever afraid of getting into an automobile due to the
incident. Uber’s Terms will protect them as well as the Third-Party Provider from a consumer
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When looking at how the Terms protects Uber from punitive damages (malicious behavior) there
is not much that Uber could add to the Terms to protect themselves. Punitive damages only apply
if the company were to do something aggressive and or malicious, meaning that if they were to
be found accountable for their actions than they are subject to whatever compensation is
determined appropriate.
Certain damages are sometimes endured at the same time. For example, a consumer could
realistically claim to pecuniary damages (loss of future income) and non-pecuniary damages at
the same time. If a customer were to be physically injured due to negligence by the company
than set customer would be able to sue for pecuniary and non-pecuniary damages. The user could
claim that the time it took for them to heal due to the accident, has kept them from working their
job. There are also possible damages of the customer entering the public spotlight and damaging
one’s personal reputation. These are the reasons that Uber should take every necessary step to
When using the Service provided by Uber there are a few pieces of personal information that
must be disclosed before being granted access to the Service. Uber requires that you provide
them with your full name, telephone number, email address, valid payment information, and
billing address. Clearly this information is not something that a customer wants to be made
public. This brings us to a crucially important legal concept that is known as confidentiality.
Confidentiality is the idea of having certain facets of a person’s life a secret or private. This legal
concept is put in place for the benefit of both parties of the Terms (Uber and the user). The user
is protected because they do not want their personal information being disclosed to anyone in the
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company that wishes to access it. Uber has added a clause that allows them to access this
information in the case of a legal issue that requires set information. The clause states “Uber may
provide to a claims processor or an insurer any necessary information (including your contact
involving you and a Third Party Provider (including a transportation network company driver)
and such information or data is necessary to resolve the complaint, dispute or conflict”. If there is
no reason for Uber to look at the customers’ personal information than their information will
remain private.
Uber benefits from this legal concept in the case of the user learning about certain policies and
procedures and disclosing this information to the competition. Uber states in their terms “You
may not: (i) remove any copyright, trademark or other proprietary notices from any portion of
the Services; (ii) reproduce, modify, prepare derivative works based upon, distribute, license,
lease, sell, resell, transfer, publicly display, publicly perform, transmit, stream, broadcast or
otherwise exploit the Services except as expressly permitted by Uber; (iii) decompile, reverse
engineer or disassemble the Services except as may be permitted by applicable law; (iv) link to,
mirror or frame any portion of the Services; (v) cause or launch any programs or scripts for the
purpose of scraping, indexing, surveying, or otherwise data mining any portion of the Services or
unduly burdening or hindering the operation and/or functionality of any aspect of the Services; or
(vi) attempt to gain unauthorized access to or impair any aspect of the Services or its related
systems or networks.” This means that anything that the user learns from using the Service
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An agency is another legal principle that is relevant to the Terms that consumers agree to in the
Terms. Agency theory is a relationship that exists between a principle and an agent in their
dealings with outsiders in the formation of legal relationships. These agents speak on behalf of
the principle in creating a relationship with a third party. These agents are responsible for their
fiduciary duty, which is someone entrusted to act in the best interest of one or more parties.
1. Agency by Estoppel: The principle behave in a way that the third party reasonably
2. Agency by Ratification: There is an agency created but the agent exceeded the actual
authority.
3. Agency by Necessity: In a specific crisis where there may be a requirement that someone
As an agent for a certain party, there are a number of responsibilities that he or she must meet. If
these responsibilities aren’t met then the agent could be subject to legal punishment. Some of the
• Fiduciary duty (special relationship of trust where you must work in good faith for the
principle)
• Full disclosure of material information (meaning if it affects the principal you are
obligated to do it.
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In agency theory, there are two parties involved the agent and the principle. The principle is
generally the person or organization who hires the agent and entrusts them with the responsibility
to make decisions in the interest of the principle. There are multiple duties that the principle has,
The most important aspect of the relationship between the agent and the principle is the
responsibility of the principle to ensure that the agent is protected against possible legal issues.
This makes sense as the agent should not have to worry about having liability while making the
decisions in the best interest of the principle. Any circumstance where the agent would take on
liability is one that the agent should distance themselves from as they are not capable of dealing
with the duty. If there is separation between the party that hired you and yourself that it is much
Another significant legal concept that was covered in class, is how the Canadian Charter of
Rights and Freedoms applies to all Canadians and what its intended purpose is. We will
examine all the clauses in the Terms that are affected by the Charter of Rights and Freedoms.
The Canadian Charter of Rights and Freedoms is a bill of rights entrenched in the Constitution of
Canada. The Charter guarantees certain political rights to Canadian citizens and civil rights to
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everyone of in Canada from policies and actions of different governments. The Charter can
affect any Terms that applies to Canadian Law. Uber, a company that conducts a large portion of
business in Canada, has separate Terms and Conditions for certain countries including Canada.
Mobility rights would be a clause in the charter that applies to the Terms being discussed.
Mobility rights covers some of the fundamental travel rights that Canadians are allowed such as
traveling within the country to different provinces and allowing Canadians the right to enter and
leave the country on their own free will. These rights allow any permanent resident or Canadian
citizen to travel to any province with the intention of finding some form of work. Both rights are
subject to any law or practice in another province that would deny entry to set province. This is
important in the case of the Terms because certain cities such as Ottawa are very close to the
border of two provinces meaning in certain cases a customer could be looking to travel to a
different province. This is crucial to allow Uber the ability to offer their service to any Canadian
or permanent resident in between provinces so long as they do not impose on any other law or
regulation passed in both provinces. Not only is this important in order to serve the user but it is
also important for the Third-Party Provider as these rights allow him or her to work in between
This section essentially states that all permanent Canadian residents have the ability to enter
Canada, and travel within the boundaries of the country for work pleasure, or both. This is
important in the case of the Terms because it would mean that regardless of where Wipeout was
being filmed, any permanent Canadian resident would have the legal right to go work in that
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province, and earn compensation. The purpose of the section is to protect the “unity” that is
In addition to travel rights for Canadians, section 2 of the Canadian Charter of Rights and
Freedoms covers Fundamental Freedoms. This is relevant to Uber’s Terms as they state that the
Third-Party Provider cannot deny the Service to anyone based on their appearance, thought,
belief, opinion, religion, etc. Essentially Uber ensures that both parties of the Terms are not able
to deny or accept the service based on discriminatory reason. This is in clear relation to the
Fundamental Freedoms section of the Charter as it states that everyone has the following
2. Freedom of thought, belief, opinion and expression, including freedom of the press and
4. Freedom of association
Another significant legal concept is the concept of torts. A tort is a wrongful act or an
infringement of a right that unfairly causes a party to suffer loss or harm resulting in civil legal
liability. Legal injuries can also be classified as emotional, financial, and mental distress they are
not simply physical harm. People often mistake tort law for criminal law, the major difference
between the two is the proof for conviction. There are two forms of torts, being intentional and
unintentional torts. Intentional torts include assault, battery, false arrest, trespassing, etc.
Unintentional torts include duty of care, standard of care, causation, and negligence. This is very
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important to Uber in case of a situation where a user claims to have physical or mental distress as
a result of the Service. These situations can come about more often than not when taking into
account that humans make errors on a regular basis, thankfully less often then when given keys
to an automobile. Unfortunately, although these accidents may happen less than your common
spelling mistake the potential damage dealt when one occurs can be tremendous. Therefore, it is
significantly important that the Terms that Uber has protects them from being exposed in tort
law. Without this protection from tort law Uber would be facing several users who are looking to
sue the company to show that they have face some sort of wrongdoing.
Recommendations:
As mentioned throughout this paper most people do not read the Terms of service before gaining
access to the Service. The Terms and Condition are roughly eight pages long and are full of
technical words that the average person would not understand without further knowledge.
Humans tend to follow the same way of thinking when it comes situations like this and that is
why it is safe to say that majority of the users of the service do not understand what they are
agreeing to before using the service as they did not read the Terms. After reading through the
Terms it is evident that it is crucial to understand exactly what the document contains. Some
people may not even use the Service once they learn and understand all the different clauses in
the Terms. This is why the recommendation that may be the most important is for Uber to put
more effort towards informing their customers of the consequences when violating the Terms
and conditions. If someone wants to use the Service provided by Uber, they must be absolutely
certain that they have fully read and understood the rights and privileges that users waive and the
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responsibilities they take on. If there is an issue with understanding the complicated document
then it is recommended that one should go and seek legal counsel in order to fully understand
what the contract is stating. Although it may be costly to acquire legal counsel, it can be even
more costly if you fall into a situation where you are responsible for financial liability. This is
very plausible especially when dealing with expensive equipment such as cars that are roughly
A company like Uber has a strong position in their respective competitive market because they
were able to enter the market with disruptive innovation technology. A disruptive innovation
technology refers to an innovation that creates a new market and eventually disrupts an existing
market, and in turn shifts established market leading firms, services, and products. In the case of
Uber, it was the ability to ensure payment for the driver, taking payment information from the
customer before providing the Service. This can cause problems in a situation where a customer
has not fully understood how much they are expected to pay for. For this reason, Uber should do
a better job of ensuring the customer is fully aware of the price they are paying for the Service,
especially in the case where the fare surge has been applied. Uber should add a second checking
system, where the customers receives a text and must respond with their acceptance of the surge
In the Terms for service, Uber places all liability regarding an accident with the transportation on
to the Third-Party Provider. In certain cases, the argument can be made that Uber did not screen
the Third-Party Provider effectively enough. A person may be able to get a driver’s license and
be over the age of 21 but this is not a thorough enough screening process to determine the
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driver’s ability. Uber should add more barriers to their screening process that can reliably and
fairly distinguish the aptitude for driving. This will show that Uber has done far more than the
minimal requirement for ensuring the driver’s ability to operate safely as well as their ability to
As a driver you are using your own vehicle when working for Uber as the company does not
provide you one. Since it is the driver’s car he or she will have their own definition of what a
reasonably clean car is considered to be. Uber would ideally want every car that picks up a
customer to be as clean as a brand-new car straight from the dealership. On the other hand the
driver of the vehicle may have a completely opposite opinion of what they believe a clean car
entails. In the Terms of service the agreement states that the customer must pay for cost of repair
for damage in excess of normal wear and tear. A customer could argue that their definition of
wear and tear is different than that of the driver, and that discretion can cause a problem. For this
reason Uber should define the standards for what they believe an adequately clean car is.
In today’s age of technology, the world is developing and changing faster than we can adapt.
Recently automotive companies have been developing self-driving cars which require no human
decision making. With this new change in technology we could be looking at the extinction of
human drivers within the next ten years. Uber has been looking in to deploying these self-driving
cars on the streets however have yet to come up with any provisions to protect them in the case
of an accident. For this reason, Uber should be proactive in creating these provision before they
find themselves in a situation where they are liable for the actions of machines.
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Problem Scenario:
March 3rd, 2017 the public learnt of Uber’s use of the software tool Greyball. It had been
reported that the company had been using this software as early as 2014 in countries such as
Australia, United States, South Korea, and China. The Greyball software is said to identify and
deny service to certain riders, particularly those who are suspected of violating Uber’s Terms of
service. The program analyzed credit card, device identification, location data, and other factors
to predict whether the request for service was legitimate. Greyball is said to be able to “hide the
standard city app view for individual riders, enabling Uber to show that same rider a different
version” (della Cava, M., 2017). The Greyball software was also used to help their drivers evade
local government authorities in certain countries where the Service was not legitimized yet. This
goes without saying that this is extremely unethical and put Ubers reputation with local
Businesses will do just about anything that has not been declared illegal in order to be at the top
of the food chain. They will cut most corners to save money, destroy the competition, and have
the best service or product available. There will always be examples of companies conducting
their business unethically and taking advantage of customers. Large companies such as Uber can
find flaws in contracts and legal loopholes to find different ways of protecting themselves from
paying. In certain situations, the government in which the service is being conducted will
intervene and declare or modify a policy that will prohibit unethical action by the business.
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Uber claims to have developed and used Greyball to deny services to consumers who under
suspicion of violating the Terms and Conditions of the service, such as people with the intention
of ruining the vehicle of the driver, harm the driver, etc. The issue with this is that the consumer
who is identified and labeled under suspicion of violating the Terms has yet to do so. Uber is
using the user provided content to distinguish these two types of users. In the subsection of the
Terms Uber states “by providing User Content to Uber, you grant Uber a worldwide, perpetual,
irrevocable, transferrable, royalty-free license, with the right to sublicense, to use, copy, modify,
create derivative works of, distribute, publicly display, publicly perform, and otherwise exploit in
any manner such User Content in all formats and distribution channels now known or hereafter
devised, without further notice to or consent from you, and without the requirement of payment
to you or any other person or entity.” This means that whatever information users provide are
used to come to this decision as to whether or not to deny an individual from using the Service.
In the contractual relationship subsection of the Terms Uber states that they are able to deny
access to the Services at any time for any reason. This means that Uber is covered in terms of
legal liability for denying the service to a consumer, however this does not allow the Third-Party
Provider the permission to do so without reason. The reason for this is to avoid discrimination
In Uber’s defence, it is not unfair to assume that some people are using the app with the intention
of violating the Terms, especially considering that Uber has almost completely destroyed its
competition. Taxi drivers have lost a considerable amount of business since the launching of
Uber, as the company essentially provides the same service as Taxi-Cab companies except
Uber’s service is cheaper, more efficient, and more reliable. There are multiple cases of taxi
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drivers displaying their displeasure with Uber through protests, rallies, and sometimes even
harmful acts directed towards the Third-Party drivers. With that in mind it makes sense that Uber
would develop a software such as the Greyball software in order to protect their Third-Party
drivers from any unnecessary harm or conflict. This however does not give Uber the green light
Uber would use the Greyball software to avoid local authorities as they were not legalized in
certain provinces and states. They were illegally operating in these provinces and would use the
software to evade officers and deny their ride requests. Uber reserves the right to deny any
person at any time without notifying them as mentioned in the Terms. This is how they would
legally protect themselves for discriminating against these officers who were affiliated with the
Bureau of Transportation for their respective state or province. In the city of Portland, December
2014 it was reported that Uber had used Greyball software tool to identify seventeen individual
rider accounts, evade PBOT (Portland Bureau of Transportation) officers and deny twenty-nine
ride request by PBOT officers (Portland Bureau of Transportation, 2017). This incident puts the
industry of transportation network companies in bad light since Uber is the first successful
company to be operating in this market. This is not ideal for Uber as they are still trying make a
good reputation for the company as they are currently dealing with legalization of the service in
numerous places. On March 3, 2017 Uber admitted to using the Greyball software to undermine
government regulators and has stated they would no longer use the software tool for that purpose
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The use of this software has truly damaged the reputation of Uber. This is not ideal an ideal time
for Uber as they are just beginning to enter new markets and have regulations being created for
them in order to operate in set markets. The software is painting Uber as an unethical company
that will cut corners in order to increase their bottom line. In certain cities such as London, the
use of the Greyball software has been used as one of the reasons to not renew Uber’s private hire
operator licence. This will result in Uber being unable to operate legally in London once the
licence expires. Clearly the ethical conduct of the business is something that is taken very
Since consumers and governments have become aware of Ubers use of the Greyball software
they have seen what people believe to be unfair. They are using the User Provided Content to
filter out any users they believe to be violating the Terms, which unfairly tagged people who
may not have had any intention to do so. This content also allowed Uber to identify the local
authorities and deny them the transportation service as well. Many would agree that although the
Terms of Service permit Uber to use this information, it is extremely unethical for consumers
and government regulators. This is clearly not the way a business should be conducting itself as
it can result in having powerful enemies which in turn hinder the growth of the company at such
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(Heritage, C., 2017). Your Guide to the Canadian Charter of Rights and Freedoms -
heritage/services/how-rights-protected/guide-canadian-charter-rights-freedoms.html#section2
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