Need a paper for business law attached is feed back from professor

Contract Law. 1

Running head: CONTRACT LAW.

An analysis of Acme Company Using contract law.

Keisha Thomas

BUS 311 Business Law

Maureen Martinous

April 9, 2018

Ashford University

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Contract Law. 2

Introduction.

Many investors start their businesses with the sole aim of making a profit without

necessarily being aware that they could lose all their investments by being ignorant of

existing guidelines. It is advised to spend sixty seconds thinking about how to protect wealth

per every sixty minutes of wealth creation (The presser law firm, n. d).When it comes to

business contracts, a conflict on whether to use standard law or unified commercial code

arises.

What will govern the contracts?

This section examines the nature of the contracts and determines which between UCC

and common law will govern them.

In many states, contracts are governed by either common law or the unified

commercial code. For a contract to be governed by common law, it must be involving real

assets such as insurance and services. On the other hand, UCC covers tangible assets and

goods such as the fireworks in the scenario (The presser law firm, n. d). Moreover, one of the

goals of UCC was to make contact law more modern as well allowing some exceptions from

common law between merchants. Furthermore, it is only in UCC that the described contract-

specifying only sketchy details can be made since elaborate requirements such as

performance time must be agreed upon for a valid contract under common law.

From those as mentioned above, it is clear that UCC should govern the contracts

made in this scenario as opposed to the conventional law.

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1

1. law.

Is this a contract for goods

or services or both?

[Maureen Martinous]

Contract Law. 3

Does the owner form a contract in the first place?

The five essentials of an enforceable contract stipulate what should be done for a

contract to be valid. This part examines whether those conditions were met hence

determining whether an agreement was made.

The five essential elements of an enforceable contract include offer, acceptance,

consideration, capacity and intention (Batis, 2013).In the case scenario, the businesses made

an offer to Acme to supply fireworks display on a regular basis. Acme owner considered the

proposal and accepted it after which talks about price commenced. At the time of the offer,

the company was in a position to provide the fireworks displays, and the intention was legal.

The contract was, therefore, valid and enforceable

Potential liability to Acme if their fireworks injure a spectator.

This part examines how the company covers spectators if they incur an injury from

the fireworks produced by the company. Various liability covers are reviewed to determine

which one is the most appropriate.

In the absence of the absence of a personal liability cover, a victim can make a valid

claim against a company’s assets including their property and earnings or other possessions

(Packard, 2009). Acme, being a registered business and complying with the ministry of trade

statutes, should have personal liability coverage to the public.

In case a spectator is injured by a stray firework, Acme’s personal liability cover will

compensate the victim. The liability cover comes with many packs that depend on the number

of attendees to such parties. The above will protect Acme’s assets or earnings from being

used to cover the accident.

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1

2

3

1. enforceable

Make sure you define each

of the essential elements.

[Maureen Martinous]

2. absence

Did you mean to say

absence twice? [Maureen

Martinous]

3. public.

Under what legal theories

could an injured potentially

recover? [Maureen

Martinous]

Contract Law. 4

What type of employment is best suited for acme?

The owner is afraid that if the company employs more people, it could be unable to

pay them in case the businesses they were in a contract with stops the large display contracts

abruptly. This section, therefore, looks at possible employment types that Acme can adopt to

mitigate the issue.

One of the most common types of employment fixed-term employment. These

employees can only work on fixed term contracts of four years after which the agreement is

assumed to have indefinite duration. This type of employment is not the best solution for

Acme since these employees are protected by the unfair dismissals act, which may happen

when the businesses stop the display orders without notice.

The other types of employees are part-time employees who are in a similar position to

full-time employees when it comes to legislation. However, the part-time employee may need

to work for a certain minimum amount of time before acquiring those rights. They are an

option for Acme under the minimum duration clause since the company will not be liable to

compensate them in case the orders stop before they complete the minimum duration.

The third category of employees is casual employees. However, there is no definition

of informal employment in employment law. They exist in reality and may include those

workers who are on standby to do some work as required without a fixed schedule of working

hours or attendance. They are the best choice for acme since the company will avoid paying

additional salaries if the orders stop abruptly. The company is also in a position to minimise

statutory redundancy payment with these types of employees by limiting their period of work

to less than two years.

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Contract Law. 5

Why acme should not operate as a sole proprietorship.

This part examines the best business type for Acme.

A sole proprietorship is not a legal entity, and as such, the owner is responsible for all

the activities, be it debt, legal battles or harm caused by the business to other parties. With the

company carrying out firework displays that can be disastrous and the number of employees

increasing, it is not safe to run the business as a sole proprietorship.

The owner should consider turning Acme into a limited liability company (LLC). This type of

business will protect him from liability due to mistakes or accidents caused by the company.

He will also continue enjoying the pass-through taxation of a sole proprietorship.

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Contract Law. 6

References.

1. Wright, M (2009, Oct 26). Don’t get burnt by a fireworks mishap. The Telegraph.

Retrieved from https://www.telegraph.co.uk/finance/personalfinance/money-savings-

tips/6435713/Dont-get-burnt-by-a-fireworks-mishap.html

2. Batis, C. T (n. d). Five Essential Elements of an Enforceable Contract. Study.com.

Retrieved from https://study.com/academy/lesson/five-essential-elements-of-an-enforceable-

contract.html

3. Law Teacher. (2013, Nov).Every Contract has five essential elements. Retrieved from

https://www.lawteacher.net/free-law-essays/contract-law/every-contract-has-five-essential-

elements-contract-law-essay.php

4. The American Law Institute (n. d). Institute projects. Retrieved from

https://www.ali.org/about-ali/institute-projects/

5. Stewart Macaulay; John A. Kidwell; Jean Braucher; William Whitford (2010).

Contracts:Law in Action (3rd ed). LexisNexis.

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