Acme Fireworks Contracts BUS 311 Business Law I Acme Fireworks Contracts The owner of A, Essays (university) of Financial Accounting

Download Acme Fireworks Contracts BUS 311 Business Law I Acme Fireworks Contracts The owner of A and more Essays (university) Financial Accounting in PDF only on Docsity!

Acme Fireworks Contracts BUS 311 Business Law I

Acme Fireworks Contracts The owner of Acme Fireworks asked me to determine the best direction they need going forward, and to do that the first thing that needs to happen is we need to read over the contracts to choose the path they need to take. Next we need to check that the contract agreements are law binding and if not we need to get them established as law binding. Next the contracts need to be revised and after that Acme needs to figure out what their new staffing needs are to make sure they can meet their end of the contract to make sure there is not a breach of contract. Finally, Acme will need to analyze their current sole proprietor business model to see what they need to do to make sure their company will continue to grow. Common Law or the Uniform Commercial Code (UCC) Common law contracts include employment, insurance, real estate, and intangible assets. Uniform Commercial Code (UCC) covers the tangible objects and purchased goods. However, they both have the same requirements including the offer has to be accepted by another person or entity for something of value. The UCC regulates many different items within a business, such as: sales of goods; all financial transactions, including deposits and collections with the bank; bulk transfers; title document deliveries; and letters of credit. The owner wanted me to research if the contracts would be governed by common law or the UCC (Upcounsel, n.d.). After looking through all the contracts I realized that the businesses request we put on large displays on a regular basis and that does not include the sale of the fireworks itself just the service of setting them up and launching them. Since these contracts cover the service being provided, then Article 2 of the UCC explains that contracts involving real property sales and services are not covered under the UCC (UCC, 2003). Finally, with the UCC not covering services that means these contracts would fall under common law.

insured properly so we are covered should an accident happen the company and owner are both protected. Finally, with being a sole proprietorship there no real business liability insurance so it would all fall back to the owner of the company, which means the owner would need to make sure he has enough liability insurance to cover any business liability that could be incurred. Employment Types Agency law is a relationship that is one person or principal that engages with another person that will do the work for them such as sell the goods, or manage the business (HG, 2020). So for Acme fireworks the agent would be the person selling the fireworks or the person/people that set up and execute the fireworks display. The types of employees at Acme are consider the principal and the agent or the employer and employee. Since the owner is concerned about not having enough man power to handle the new business with the large companies and being able to do all the firework displays they may want on a regular basis and to still be able to handle any other business that might come in as a one-time thing, I would suggest on hiring part-time or temporary or even seasonal employees, If you bring in the temporary or seasonal employees they are already aware that it is a limited time frame of work so if business slows up they are easier to let go then if you would hire all full time employees and if the business is not steady enough you have to let them go. Another piece with temporary or seasonal employees they are paid hourly and are not usually offered benefits so it is cheaper in the long run since you do not have to provide paid time off, insurance benefits, or guarantee them a full weekly paycheck. However, when you hire full time employees they are more loyal to the company since they are hoping to stay and possible advance in the company, so they will take the extra trainings to prove their worth and they feel they have an investment in the company.Finally, after looking at all the possibilities and the advantages and disadvantages I would see if I could bring on a few full time

employees and then to fill in the holes bring in the temporary employees that way if business does slow up you can let them go, but if business continues to grow you can always then offer the temporary employees a full time position since they already know your business and you have paid to train them. Business Entity (SBA, n.d.) A sole proprietorship is the easiest and least expensive business entity structure to start. This entity is the oldest and simplest form of ownership that can be started under the owner’s name and there cannot be a partner (SBA, n.d.). Acme Fireworks should not operate as one since all liability is covered under the owner with his personal insurance and his private property could be in danger if the company was ever sued. Also, with Acme fireworks dealing with explosives it carries a stronger possibility of their being an injury or lawsuit so the owner could lose everything over one accident or malfunctioning firework. The other entities that are out there for a business are partnership, limited liability company (LLC), and corporation. Partnership is similar to a sole proprietorship the man difference is you have more than one owners and the liability can be covered by just the person at fault and not both owners depending on the lawsuit. LLC is a bit more of a business structure than the other two and can function under a corporation and you are only responsible for limited or no liability concerns. The last entity is a corporation which is on a much larger scale where you have board of directors to answer to and provide monthly financials along with shareholders and dividends that need to be paid to them annually. I feel that Acme fireworks would have the best benefits as a LLC since it combines a little bit of all the other business entities, you could have a sole owner, or a partnership, and the business handles the liability like a corporation and it is not your personal liability. “The LLC represents an attempt to combine the best features of a partnership with the best features of a corporation.

help without running the risk of not having the work or the money to pay for the extra help, as I mentioned the temporary employees might be the best for all involved. Finally, I would make sure to look over the options for business liability insurance to have that extra piece of mind for the company if something should happen either with debt or injury.

References: HG.org (1995 – 2020). Agency Law – Agent Law. Retrieved from: https://www.hg.org/agency-law.html Rogers, S. (2012). Essentials of business law. Retrieved from https://content.ashford.edu/ Upcounsel. Common Law Contracts vs. UCC: Everything You Need To Know. Retrieved from: https://www.upcounsel.com/common-law-contracts-vs-ucc Uniform commercial code (UCC). (2003). In B. Etzel, Webster's new world finance and investment dictionary. Houghton Mifflin Harcourt. Credo Reference: https://search- credoreference-com.proxy-library.ashford.edu/content/entry/wileynwfid/ uniform_commercial_code_ucc/ U.S. Small Business Administration. Sole Proprietorship. Retrieved from: https://www.sba.gov/content/sole-proprietorship