Evaluation Of A New Business

2589 WordsJun 22, 201511 Pages
As a manager of an up a coming small business there are several things to consider. Formulating a recommendation to the owner of how to change this business entity would will require a detailed evaluation of laws that will govern the business. Careful consideration of any contracts in place would also need to be considered before determining what type of business to form. Due to the dangerous nature of the product produced by a fireworks company possible liability would need to be evaluated so the proper insurance could be purchased. Because the business is also expanding from a garage operation to full-fledged business more employees will need to be hired and how they interact with the new structure is critical to the business success.…show more content…
Acme Fireworks needs to also take a look at the different employment types and relationships relevant to agency law, and try to analyze the advantages and disadvantages of each type specific to Acme Fireworks. Governed by Common law or Uniform Commercial Code (UCC) Common Law primarily does business with insurance, real estate, assets and employment contracts. While, UCC is primarily involved with sale of goods, Common law, Common law system emphasizes the making of rules through court decisions. (Rogers, 2012) Under the Uniform Commercial Code, must be liberally construed and applied to promote its underlying purposes and policies, which are: (1) to simplify, clarify, and modernize the law governing commercial transactions; (2) to permit the continued expansion of commercial practices through custom, usage, and agreement of the parties; and (3) to make uniform the law among the various jurisdictions. Unless displaced by the particular provisions of the Uniform Commercial Code, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, and other validating or invalidating cause supplement its provisions. (Cornell Law, 2015) I believe as the manager for Acme Fireworks that it would be a smart
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