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.edu/index.html”>Ashford Writing Center.
·
Must include a separate title
page with the following:
o Title
of paper
o Student’s
name
o Course
name and number
o Instructor’s
name
o 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.edu/index.html”>Ashford Writing Center.
