Acme Fireworks Contract – Final Paper

Focus of the 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.

9 pages with references