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Bus 311 week 5 final paper

08/10/2021 Client: muhammad11 Deadline: 2 Day

BUS 311 Week 5 Final Paper

Final Paper

You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he does not know what entity to form or how to form it.

The owner has asked you to do the following:

Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.
Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract.
Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.
Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.
Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation.
For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion.

Writing the Final Paper

The Final Paper:
Must be eight to ten double-spaced pages in length (not including the title and reference pages), and formatted according to APA style as outlined in the Ashford Writing Center.

Must include a title page with the following:
Title of paper
Student’s name
Course name and number
Instructor’s name
Date submitted
Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought. That is, describe what your response is to the content, either positive or negative, and defend your position. If multiple options, alternatives, and/or positions are present and are being rejected, you must also defend the reasons for rejecting an option.
Must end with a conclusion that reaffirms your thesis.
Must include at least five scholarly sources, two of which must be from the Ashford University Library, in addition to the course textbook.
Must document all sources in APA style, as outlined in the Ashford Writing Center.
Must include a separate references page, formatted according to APA style as outlined in the Ashford Writing Center.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

Running head: Final Paper Outline

1

Final Paper Outline

Leticia Cordero

Final Paper Outline

BUS311: Business Law I (BBL1530B)

Instructor: Janet Fiorentino

August 10, 2015

Ashford University

Introduction:

I. As the manager of Acme Fireworks, I see the company in a strategic position of delivering on the fireworks orders in skilled labor, insurance, and the actual service of setting off the fireworks. The one critical area for the company owner to reconsider is the issue of having enough human resources in working on the large orders from businesses.

II. In addition to this, there are critical areas that need to be addressed;

a) the governance of the company’s contracts with the businesses

b) determination of whether or not the contracts are binding

c) the security measures, the company’s potential personal liability in case of injuries

d) the different employment types and relationships relevant to agency law and their advantages and shortcomings

e) The likely business entity or types of business in which the company should operate.

Thesis: The decision by the owner of Acme Fireworks to change the entity of his business from a sole proprietorship in fear of losing out on the huge and large business deals in offering the fireworks displays is misadvised. That is because the company has already entered into contracts and as such, the best option of ensuring the work is delivered appropriately would be for the owner to go for outsourcing the services from other companies. The importance of this is that the work will be still professional and easy to deliver as opposed to hiring a few employees for that purpose as well as changing the entity’s type in the dying minutes.

III. The contract between Acme Fireworks should be governed by the Uniform Universal Code (UCC) given the model entails or covers the different statutes involving various business factors including business transactions, negotiation debriefs, security of loans and many more.

f) The UCC requirements for a merchant and non-merchant are critical in attaining uniformity in laws commercially in the event of an extension of transactions of two different businesses from various States.

g) The reason for the contracts to be governed by UCC is that the owner of the company is who under the UCC is a person with regular dealings in a particular trading of goods and their pieces within his or her knowledge and as such, the owner of Acme stands to make profits.

IV. The contracts in which Acme entered with other businesses are legal and binding as they meets the five mandatory conditions namely free and informed consent by both parties, mental capacity of keeping the promise, a specific agreed upon purpose or object, and the promise of valuable consideration and compliance with formalities.

h) In the given case, there is a free consent by Acme owner and the businesses in that the company freely promised to display fireworks as requested

i) At the time of promising to display the fireworks, the owner of Acme was mentality capable and as such, he was fully aware of the promise.

j) The object of the agreement between the two parties was for Acme to display the fireworks and in return, the businesses would pay or the services. T

k) The promise of valuable consideration in this case was displaying the fireworks as requested by the different businesses

l) However, the contracts are voidable because there is no undertaking involved by the both parties in writing to honor the contract in totality.

V. In terms of personal liability for Acme in the event of an injury to a spectator, the company is liable for not putting up warning signs that there is fireworks display work ongoing and as such people should keep a considerable distance. That means that the company would cater for the hospital bill as well as compensate the injured victim

VI. The appropriate employment type for Acme would be part-time employees who are non-exempt. That is because the nature of work required in the fireworks is cheaper in working with compared with full-time employee. However, as per FLSA requirement, the should be paid overtime involving work done beyond the work period threshold of the work week that comprise of s even consecutive days of 49 hours per work week for actual work done.

VII. Acme should not operate as a sole proprietorship because it lack enough capital that it can use to pay for the extra employees required delivering on the fireworks displays by the various businesses as well as the decision-making mechanism is without consultation as there is only one owner

m) The appropriate business type for Acme to switch to would be a partnership form of business given that there will be more opportunities for rising capital as well as there would be consultation before making decisions.

Reference

Business & Legal Reports (Firm). (2008). FLSA wage & hour self-audit guide. Old Saybrook, CT: BLR

Chitty on Contracts: Vol. 1. (2012). London: Sweet & Maxwell Ltd.

Poole, J. (2012). Textbook on contract law. Oxford: Oxford University Press

Rosenbloom, J. S. (2001). The handbook of employee benefits: Design, funding, and administration. New York: McGraw-Hill.

White, J. J., & Summers, R. S. (1996). Uniform commercial code. St. Paul, Minn: West Pub. Co.

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