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8 pages/β‰ˆ2200 words
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Style:
APA
Subject:
Business & Marketing
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Essay
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English (U.S.)
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Business Plan: ACME Fireworks

Essay Instructions:

You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he does not know what entity to form or how to form it.
The owner has asked you to do the following:
Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.
Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract.
Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.
Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.
Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation.
*If you need more information on the course workbook, I can give access to the course upon request.



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Acme Fireworks
Acme Fireworks is a known firework company that is in a retail business. This company is involved in selling fireworks as well as putting on the ground and large aerial firework displays. Acme Fireworks started as a sole proprietorship since its establishment two years ago. It has been growing gradually along with its increased productivity. Due to this anticipated growth, the company shifted from being managed by the owner alone to employing 15 additional workers. Due to the increasing demand and inquiries of large businesses concerning the constant generation of several fireworks displays, the sole proprietor is now considering the shift of business form to another. The options include partnership, cooperative, or limited liability company to address the fireworks display's growing demand. With that in mind, the thesis of this paper is to establish the most beneficial business form of Acme Fireworks while taking into consideration the governing laws of the business entity and contractual transactions, if the contracts involved are enforceable, personal liability during a situational crisis, and the hiring of employees.
Law governing the contractual transactions
In terms of contracts, it is vital to note that two different law bodies are involved – the common law of contracts and the Uniform Commercial Code (UCC). Most of their difference lies in the outcome of a contract dispute. These differences include the discharge or modification of a contract, the ability to collect the punitive damages, the chances of getting sued due to breach of contract, and recognizing the existence of a legal contract. Understanding the type of contract under each law is vital. The common law of contracts pertains to contracts in relation to services, insurance, real estate, employment, and intangible assets, while UCC is concerned with the selling goods and securities. In the case of acquiring a contract of Acme Fireworks with inquiring businesses, such contracts shall be governed with UCC. The contracts involved the sale of goods as well as securities. The dominant element of the contract is the goods that would be in control of the contract. More fireworks would be produced more compared to the number of personal employed. Thus, the UCC rule will be applied.
Whether contracts are formed and enforceable or not
A contract between the owner and the inquiring businesses is considered valid if the five elements of an enforceable contract are present. The five key elements of an enforceable contract include an offer, the acceptance of such an offer, considerations involved with the offer, the capacity to do contractual transactions, and the legality or legitimacy of the contract (Burnham, 2016). To understand these elements better, first and foremost, there must be the element of an offer. An offer is an invitation or a kind of demand created by an individual or a group of individuals for another while benefitting each other (Rogers, 2012). An offer is needed to enter a contract. The inquiring businesses require a regular supply of firework displays and made an offer to Acme Fireworks to provide for such services.
The need for acceptance follow...
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