Acme Fireworks Is A Sole Proprietorship

1770 WordsMar 20, 20178 Pages
Acme Fireworks is a sole proprietorship that has recently attracted the attention of larger retailers who desire to place large reoccurring orders. It is necessary to ascertain if Acme Fireworks can fulfill these orders and what will be necessary to fulfill such great volumes. In this proposal, I will Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code, Analyze whether the verbal agreement discussed between the owner and retailer meets the five essential elements of an enforceable contract. I will also explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display, as well as the different employment types and…show more content…
It will also put the company out of harms way when it comes to tax implications and provide both personal and business protection from other liabilities. The Uniform Commercial Code (UCC) is a summary of traditional common law rules which govern commercial transactions. The uniform commercial code can be considered a statutory program under the law of administering, legalizing, and recording contracts (US Legal, 2016). It standardizes business laws in the US and seeks uniformity amongst states. The law also seeks to diminish the need for legal formalities while making business deals with the absence of lawyers and elaborate processes. There are conditions which are stipulated in UCC contracts and if present in the contract between Acme and its partners, the contract would be repudiated in accordance to the UCC. Common law emphasizes the making of rules through court decisions (Rogers, 2012 1.1). Common law can vary by state and requires consideration should any type of modification be done to the original contract. The contracts for this business will be governed by common law because UCC governs moveable products. The customers of Acme Fireworks will have to buy displays and set up for fireworks, so they are immobile products so this contract will be govern by common law (Budd & Bhave, 2010). Various factors have to be discussed if the business model of the Acme fireworks is to be changed. The decision
Open Document