Need a business law 8 -10 page paper

1

5

Final Paper Proposal

The University of Arizona Global Campus

BUS311: Business Law

Final Paper Proposal

Acme Fireworks is a firework retailer who currently sells fireworks, put on ground displays, and large aerial display fireworks. The company is a sole proprietorship as the owner started the company from their very own garage, however the business has now grown and currently have 15 employees. Acme has recently received several inquiries from large businesses wondering if they can create several fireworks display on a regular basis. With these contract request, Acme Fireworks would be facing substantial growth. They would have to increase their employee base, as well as an increase in the frequency of dangerous displays, all increasing risk and liability for the company. With all of these new potential developments, Acme owner is considering a change in the company’s entity status, among a few other concerns. This paper will elaborate on the governance of the contracts by the Uniform Commercial Code (UCC), whether the owner formed a contract with the businesses, applying the five essential elements of an enforceable contract, explain the potential of personal liability to Acme Fireworks if a spectator is injured by the fireworks, employment types and relationships associated with Acme, and lastly a different business entity option for Acme Fireworks. With this business expansion Acme Fireworks would best benefit if they prompt a change from a sole proprietorship to a single member limited liability company (LLC), as with the new increase risk and liability this would take personal liability directly from the owner and change the liability to the company.

Contract Governance

The UCC would best cover the contracts with these businesses. There are many areas in the law that are particularly important to business operations and the smallest variation in the law can have a negative effect. Given that laws vary from state to state, the UCC was created in an attempt to unify state laws affecting commerce into a single code which all states could adopt to make interstate commerce easier and more efficient (Rogers, 2012). Given that the businesses inquiring about firework displays may be from different states, and with the frequency of large displays individuals, as well as commerce from other states maybe effect.

Contract analysis and the Five Essential Elements

Contracts can be classified as express or implied in fact, bilateral or unilateral, and simple or formal. In the case with Acme Fireworks, a simple contract was formed. A simple contract is any oral or written contract that is not required to follow a specific form (Rogers, 2012). However for the contract to be enforceable it must have the five essential elements; an offer to enter into a contract, acceptance of the offer, an exchange of consideration between the parties, a legal purpose for the contract. In addition with both parties having the capacity to enter into the contract.

Potential Personal Liability

Acme Fireworks Company deals with firework displays, which is hazardous activity. This creates a great deal of personal liability for the company as the nature of their business operations are intrinsically dangerous. Given this the company would be strictly liable if any one was injured as a result of their firework displays.

Employment types and Agency Law

An agency is a relationship where the agent agrees to act on behalf of the principal. To simplify, an employer is considered a principal and the employee is the agent. Agents can be gratuitous, essentially working for free, one example would be a volunteer, or compensated agents, which would be an employee or contractor.

Business Entities

A business entity is an organization created by one or many individuals to conduct business, and there are various types of entities; one of them being a sole proprietorship which Acme Fireworks is currently operating under. Another business entity option which is a better fit for the company is a limited liability company.

References

Rogers, S. (2012). Essentials of business law. Bridgepoint Education

Prakash, P. (2020). Types of Business Entities. Just Business. Retrieved from: https://www.justbusiness.com/legal/business-entity