Explain the potential personal liability to acme fireworks

Reference no: EM132055106

Final Paper

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.

• 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.

• Must include a separate references page that is formatted according to APA style

Reference no: EM132055106

Questions Cloud

What are the principles of economics : Prepare an 875-word research paper as part of a marketing research committee for your organization about current microeconomic thought and theory.

What opportunities are there for arbitrageur : A two-month European put option on a stock is currently selling for $2.50. What opportunities are there for an arbitrageur?

Business model for jpmorgan chase : The business model for JPMorgan Chase was change in 2008. Could the upside of the strategy have been achieved without exposing JPMorgan Chase the bank?

Background providing risk management consulting services : The other has a background providing risk management consulting services to department stores. Which person would you choose if everything else was equal?

Explain the potential personal liability to acme fireworks : Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.

Define the price elasticity of demand : Define the price elasticity of demand - Define the income elasticity of demand? What information does it provide? How is it calculated -Define the cross-price

What are the erm strengths and weaknesses of strategy : In the process, the bank gave enormous trading authority to one individual. What are the ERM strengths and weaknesses of this strategy?

What is the price of european call option : What is the price of a European call option that expires in six months and has a strike price of $60?

Convert the nominal wage rates into real wage rates : Convert the nominal wage rates in the following table to real wage rates. The formula is given in the book as Real = (Nominal/(Price Index/100)).

User Account

All Pages