BUS311: Business Law and The Contractual Responsibility

**Email from the instructor:

 Class, for the final paper, you need to decide whether this scenario would fall under the common law or the UCC. This is a key part to the paper. Every sentence of the week 5 scenario is important and stated for a purpose. There is a test that one can use to determine which theory of law will govern when they are both present. Then, after deciding that, you can move through the four issues of the final paper.  

------------------------------------------------

**Notes on my poor, poor, outline, which I can’t let you use because it was that bad:

Make sure you discuss each requirement separately. For example, discuss if the contract is governed by the UCC or the common law and come to a conclusion. Then, move on to the discussion if a contract was formed or not. Go through each element and prove to me that the element was present or not.

Also, you need to keep your discussion as to why Acme should not be a Sole Proprietorship separate from the liability discussion. If a spectator were injured, I want you to discuss the law the spectator would sue Acme under. Let me know if you have any questions.

FINAL PAPER SCENARIO & 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.

For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion.

The paper

• Must be 8 to 10 double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center.
• Must include a separate title page with the following:
  • Title of paper
  • Student’s name
  • Course name and number
  • Instructor’s name
  • Date submitted
• Must begin with an introductory paragraph that has a succinct thesis statement.
• Must address the topic of the paper with critical thought. That is, describe what your response is to the content, either positive or negative, and defend your position. If multiple options, alternatives, and/or positions are present and are being rejected, you must also defend the reasons for rejecting an option.
• Must end with a conclusion that reaffirms your thesis.
• Must include at least five scholarly sources, two of which must be from the Ashford University Library, in addition to the course text.
• Must document all sources in APA style as outlined in the Ashford Writing Center.
• Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.