BUS 311

Running head: CONTRACTS, AGENCY LAW AND LIABILITIES 1

Contracts, Agency Law and Liabilities Outline

Oscar Vasquezmolina

Course: BUS 311 Business Law I

Instructor: Sgarlatti

Date: 11 March 2019

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1. Your paragraph spacing

“after” is set at 10 pt. instead

of zero, making the spacing

after a paragraph (new line)

noticeably larger than a

double space. This would

be a global (Ctrl-a)

paragraph format change.

[Anthony Sgarlatti]

CONTRACTS, AGENCY LAW AND LIABILITIES 2

I. Introduction

Adequate research has to be conducted by the entrepreneurs to make sure that their

business ventures will be a success. Such can be seen when considering Acme Fireworks

which has been provided in the scenario, a sole proprietor business, which focuses on

delivering products, that is, the fireworks, to its customers. There are various business

activities which can also be found in the scenario. One example as presented in the case study

will focus on contracts which will be made between Acme Fireworks and some of the

inquirers. Other aspects evident in the case study provided will focus on the Law of Agency,

different forms of business and liabilities.

(a) Thesis Statement

The growth of the business that is, Acme Fireworks, will help with the establishment

of some factors which will focus on the regulation of contracts, whether the owner of the

business will be liable for any injury incurred and the employment of employees who will

serve as agents to the business.

II. Body Paragraph 1- Topic Sentence

The relevance of common law will highly focus on the contractual transactions which

will revolve around intangible assets whereas the significance of the Uniform Commercial

Code will focus more so on transactions which will feature tangible objects such as goods as

portrayed in the scenario.

(a) Supporting Evidence

There is a lack of uniformity when considering common law since a good number of

individuals will fail to follow the applicable laws when making contracts, and this has further

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3

1. The title of your paper

must be repeated and

centered at the top of your

second page (the first body

page). [Anthony Sgarlatti]

2. fireworks,

and displays [Anthony

Sgarlatti]

3. Uniform Commercial

Code

The UCC applies to the sale

of good and securities,

whereas the common law of

contracts generally applies

to contracts for services, real

estate, insurance, intangible

assets and employment. If

the contract is both for the

sale of goods and for

services, the dominant

element in the contract

controls.

Firework displays are a

service. [Anthony Sgarlatti]

CONTRACTS, AGENCY LAW AND LIABILITIES 3

heightened the significance of employing the Uniform Commercial Code to meet the needs of

a business (Jennings, 2014, p. 370).

(b) Explanation

The court rulings will focus on common law and whether the contract should be

considered enforceable, void, valid or voidable. However, the UCC will have a significant

impact on the determination of the decisions because of the existing uniformity absent in

common law.

(c) So What?

Court rulings will heavily lean on the Uniform Commercial Code because of its

uniformity when deciding cases which involve a breach of a contract.

III. Body Paragraph 2- Topic Sentence

There are five essential elements which will lead to the establishment of an

enforceable contract.

(a) Supporting Evidence

Acme Fireworks has managed to enter into an enforceable contract which will focus

on the offer which was made by him to the inquirers and was accepted, the consideration or

the money which would be paid as per the display agreed up by the parties involved as well

as the other two essential elements (Monahan, 2001).

(b) Explanation

The five essential elements of an enforceable contract which consist of an offer,

consideration, acceptance, capacity and legality have been met as provided in the case study.

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[no notes on this page]

CONTRACTS, AGENCY LAW AND LIABILITIES 4

(c) So What?

Contracts will help protect the business from liabilities and will prevent the other

party from reneging or revoking the agreement without a just cause.

IV. Body Paragraph 3- Topic Sentence

A sole proprietor business will highly be disadvantageous since the sole proprietor

will personally be liable for any damage or injuries which will be incurred by another person

as a result of negligence or recklessness.

(a) Supporting Evidence

The first element which leads to the determination of whether an individual will be

liable or not will be negligence as established in this particular mantra, "Let us dare do our

duty as we understand it" (Emily 2008, p. 12-13).

(b) Explanation

The determination of whether Acme Fireworks will be liable for an injury incurred by

an individual during the displays will highly revolve around negligence as the essential

element in the Law of Torts.

(c) So What?

Fireworks, as well as their displays, will be considered hazardous. Hence, necessary

steps have to be taken to avoid any liabilities except for injuries which will not be

foreseeable.

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1. liable

Creating new fireworks

displays will increase liability

in the event that a bystander

is injured. Fireworks displays

can be classified as an ultra-

hazardous activity. Ultra-

hazardous activities are

anything that can be

considered extremely

dangerous. This means that

even if Acme takes the

appropriate safety

precautions and a bystander

is injured as a result of the

operation, Acme is still liable

for damages. However, if the

bystander is injured due to

their own negligence, the

liability is shared among the

bystander and Acme.

[Anthony Sgarlatti]

CONTRACTS, AGENCY LAW AND LIABILITIES 5

V. Body Paragraph 4- Topic Sentence

There are various types of employment which exist in the world and which will focus

on full-time employees and independent employees who will not be considered as employees

in the workplace.

(a) Supporting Evidence

As established in this particular book, the relationship which will exist between the

principal and the agent will focus on authority which will be consensual (Bennett, 2014).

(b) Explanation

The agent will be representing the principal during the business transactions. Hence,

the authority which will exist between the two parties will have to be consensual.

(c) So What?

Reasonable diligence will have to be taken by the agent since his actions during

business or when handling a third party may or may not result in liabilities.

VI. Body Paragraph 5– Topic Sentence

A sole proprietorship will have its merits and demerits which may or may not impact

the growth and the expansion of Acme Fireworks in the future.

(a) Supporting Evidence

A limited liability company will highly be beneficial since a company which often

handles hazardous items will not attract any liabilities which will be incurred by the

individual or one of the owners of the company. Hence, the assets belonging to the owner

will be protected (Shenkman, Weiner, & Taback, 2003, p. 235).

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1. Be sure to include how

many and of what type will

be hired for the new

business. [Anthony

Sgarlatti]

2. sole proprietorship

unlimited personal liability

and hard to obtain outside

funding. [Anthony Sgarlatti]

CONTRACTS, AGENCY LAW AND LIABILITIES 6

(b) Explanation

This form of business will offer liability protection to the owners of the company if an

injury has occurred during the display of the fireworks.

(c) So What?

Limited Liability Company will have more merits when compared to sole

proprietorship which will highly be beneficial when considering the expansion of the

business to feature new employees, agents and independent contractors.

VII. Conclusion: Rephrased Thesis Statement

The expansion of the organization will require the owner to take drastic steps which

will make sure that he has fully complied with the regulatory laws which govern contracts,

the Law of Agency as well as the Tort Law. This will help the organization to avoid liabilities

for injuries incurred by another individual. The change from a sole proprietorship to a limited

liability company will highly beneficial to the owner of Acme Fireworks.

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[no notes on this page]

CONTRACTS, AGENCY LAW AND LIABILITIES 7

References

Bennett, H. (2014). Principles of the Law of Agency. Bloomsbury Publishing.

Emily Lynch Morissette. (2008). Personal injury and the law of torts for paralegals. Aspen

Publishers Online. 12-13

Jennings, M. M. (2014). Business: Its legal, ethical, and global environment. Nelson

Education, 370.

Monahan, G. (2001). Essential contract law. Routledge-Cavendish.

Shenkman, M. M., Weiner, S., & Taback, I. (2003). Starting a limited liability company. John

Wiley & Sons. 235

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1. References

Only the first word in

reference titles should be

capitalized unless proper

nouns or after a colon – see

the sample paper made for

this class as an attachment

inside the Announcement,

“Walk-through of our next 5

weeks together” plus the

Writing Center. [Anthony

Sgarlatti]

2. 12-13

Page numbers belong in the

citation, not reference.

[Anthony Sgarlatti]