Acme Fireworks: Business Law Report - Contract, Liability, and LLC

This report analyzes the business law challenges and opportunities faced by Acme Fireworks, a small company seeking to expand its operations. The report examines the applicability of the Uniform Commercial Code (UCC) versus common law in the context of Acme's contracts, focusing on the essential elements of a valid contract. It delves into the liabilities associated with the production, transportation, and use of fireworks, including employer responsibilities for employee safety and potential liabilities to users. The report also explores different types of employment, including full-time, part-time, and independent contractors, and their implications for the company. Finally, the report recommends the conversion of Acme Fireworks from a sole proprietorship to a limited liability company (LLC), detailing the benefits of this structure in terms of liability protection and operational flexibility. The analysis includes relevant legal frameworks, employment regulations, and financial considerations to support the company's expansion and ensure its long-term success.

Running Head: Business Law
Acme Fireworks
BUS 311: Business Law I
SystemJP

Business Law
Acme fireworks
Acme fire-works is a small company dealing to provide numerous qualities of
fireworks for all size ventures like small and big. It was started before two years ago in a
garage and now after completing two years of the successful operation in the a sole
proprietorship organisational managers are planning to expand the company to meet the
fulfilment of the new orders. Due to increase of the demand in the market for fireworks,
company needs more human resources to make the quality products for the market. Hence, I
have been hired on the post of manager to meet the expectations of the manager to manage
the overhaul of the orders with effective hiring of the new employees, and to plan effective
human resources management activities in the legal frameworks of Uniform Commercial
Code. I will explain all the essential elements validating a contract in the guidelines of legal
frameworks, next I will focus to explain the safety measures and planning to handle any case
of safety challenges or accidental cases with the employees engages in the production of the
fireworks. This will also include the obligations imposed over the management for the safety
of the employees engaged in the company. At the end, I will make suggestion to the
management why it should plan to expand the company into a limited liability company
(LLC) instead of sole proprietorship with effective planning to success.
Common Law v. UCC
Uniform Civil Code active since 1952 was introduced in the United States to control,
and guide the organisations engaged in the business of any form with effective control and
making the transections legal in every manner. Many organisation as it Acme fireworks
dealing the sole proprietorship but planning to accept the order from the big ventures across
other states, than this will fall under the sections of the UCC to deal the legality of
transections in the business. UCC is an evaluation of the Common law where UCC deal with
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the management of tangible assets only whereas common law covers the non-tangible objects
as it copyright software, insurance, services, trademark, professional work patents, real estate,
etc. Operations of the Acme fireworks relating to display the contractual transection of the
products form the centre to ventures will fall under the obligations and operating area of the
UCC in place of the common law and it also deal in the service contracts of the firms.
Current obligations and operations of the Acme fireworks essentially and effectively
controlled by the Uniform commercial Code because transferred goods and products of the
Acme are considered as durable (Hunter 2015).
Valid Contract
A valid and complete offer with the completion of all essential elements legally
important to frame a contract is foundation to enter in a valid contract. Contract with undue
coercion, without fulfilment of basic needs as it both parties has attended the age of majority,
sound mind agreed upon all Valid Contract terms and conditions with free consent. Any lack
of the above conditions affects the validity of a contract (Burton 2012). Law restricts the
parties to enter in the one-sided, forceful or any contract for the illegal purpose, an offer with
full consent and describing the terms and conditions to the other party create an agreement. A
person offering the contract must have right to offer that contract whether for him or for the
third party who had authorised the person to offer the contract on his behalf. A person
accepting the offer needs to be capable of accepting the offer. Offer, acceptance,
consideration, legality and capability are the important points essential to be completed by the
both side of the parties entering in the contract. Acme majorly enter in the contract of sales
and purchase, purchasing contract are for the suppliers and selling contracts are for the
buyers, it have the obligations to maintain the legality of its contract as it is dealing in the
sector or fireworks that is very sensitive sector due to its nature of selling harmful objects to
the parties.
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Fireworks Liabilities
Production, manufacturing, transportation, and storing of the fireworks are very
challenging and dangerous. It a very risky sectors because manufacturing of the fireworks
includes the use of the harmful objects as any minor negligence in the use of raw material or
finished products can cause accidents, sometimes causing threat to life of the employees
engaged in the operations. Fireworks production or using the fireworks both are risky, as
using the fireworks caused harm to any spectators can blame the user for the harm.
Direct liabilities of the owner of the Acme Fireworks arise against the employees and the user
both. Employees have right to get proper place and training to produce the fireworks and
organisation have obligations to maintain their security and safety with providing the quality
raw material for the fireworks. If any harm caused to the user due to poor quality of the
fireworks, than the only obligations for the cause of risk falls on the owner.
If any employee is ignoring the basic guidelines willingly or any user is using the fireworks
by ignoring the basic guidelines of the products uses than the owner have no direct obligation
for the risk caused to them because their own acts lead the negligence and caused the risk.
Employment Types and Relationships
Employment rules and regulations are important aspects in an organisation these
regulations are related to the basic and advanced management of the employees in and
organisation. Duty hours, duty timing, wages, basic facilities, hourly overtimes and many
other facilitates code of conducts are included in the employment binding. Types of
employments are fulltime, part-time, temporary, or seasonal and tem to hire. Contractual
agreement with the employees can be permanent and temporary; owners are obliged to pay
the wages in the contractual employees they do not pay the other benefits safety wages, in
case of Independent Contractors, workers are not engaged in official working and owner is
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authorised to cancel contract anytime without paying severance package or pay bonuses.
Hiring the individual contracts make the owner free form obligation because contractors are
liable for protection ad safety for their own. In case of contractors hired for short period this
causes increased wages and expenses but it is very effective when needed in the emergency.
Fireworks have boom in the sales during particular seasons, and hiring of short term
contractors for the seasonal production affect the sales and production of the fireworks.
Acme is engaged in the continuous production of the fireworks, it has obligations to pay the
basic benefits to the employees with feasibility in the hiring of the employees by application
of OSHA legal frameworks for safety and security of the employees form danger and risk of
firework production.
Sole Proprietorship v. LLC
Acme fireworks, is enjoying the increased demand in the market, including the
ventures of all size from the many sectors. This requires the organisation to increase the
amount of production and number of employees to the effective flow of production and
supply of the demanded products within the time in the market (SBA 2018). This growing
number of the employees and increasing the liabilities of the owners represent the need to
convert the fireworks from sole proprietorship to a limited liability company (LLC). An LLC
is a mixture between partnership and corporation; Participants of an LLC have working
suppleness and revenue welfares in limited exposure like a partnership. A sole proprietorship
allows the owner to mix the incorporating business funds with the personal funds but LLC
has restrictions, rules, and obligations for fund generation and utilization. All funds invested,
earned, and used are recorded in the books to measure the profit or loss form the business in
the end of fiscal year. All the efforts regarding fund, resources and production are managed
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according the framework of LLC with personal liability of owner to keep the organisation
earning the profit.
Began as the sole proprietorship with limited employees before two years, now
making profit and increased demand has opened the opportunity for the organisation to
expand the number of employees and production. As new manager my prior duty in the
organisation will be to manage the expansion of the company with the LLC framework and
signing the contracts for longer profit. Before implementing of any new law or change
understanding of the operations and organisation is compulsory as I discussed above the
Common law and Uniform Commercial Code define the operation ad legal obligation of the
organisation and employee relations management to manage and lead the profitable journey
of the company from sole proprietorship to a limited liability company.
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References
Rogers, S. (2012). Essential of Business Law. {Electronic version}. Retrieved from
https://content.ashford.edu/
Hunter, H. (2015). Modern Law of Contracts.
Burton, S. J. (2012). Principles of Contract Law
Consumer Products Safety Commission. (2008). Fireworks Business. https://www.cpsc.gov/
Small Business Administration. (2018) Limited Liability Company. Retrieved from
https://www.sba.gov/content/employee
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