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Bus 311 week 5 final paper

16/11/2020 Client: papadok01 Deadline: 3 days

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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