Business Law - Acme Fireworks

2432 WordsJun 20, 201610 Pages
Business Law - Acme Fireworks Introduction Various liabilities can arise while manufacturing and selling fireworks. Potential personal liabilities can also arise if a customer is injured while using the fireworks and can often be devastating to the owner of a business, especially if the owner is not protected by an appropriate business structure/entity (Rogers, 2012). Hence, in order to expand the business, one of the best precautions would be to change the business from a sole proprietorship to a Limited Liability Company (LLC) (Miller, 2015). Moreover, while transitioning into a larger business, the company would have to hire additional employees or independent contractors so as to keep up with an increase in demand for the products, which leads to the necessity of having a valid contract in place to ensure that every transaction and business dealing is carried out legally (Miller, 2015). Hence, the purpose of this paper will be to provide advice to Acme Fireworks’ owner as the manager on different issues ranging from common law and UCC requirements of business contracts, the essential elements of a contract, personal potential liability in case of injury, the different types of employment and the most appropriate business structure for the company. Discussion Common Law versus the Uniform Commercial Code (UCC) All contracts are governed by the state laws where the agreement was made. Nevertheless, a contract can either be governed by the Uniform Commercial Code (UCC) or

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