Acme Firework: Business Law 1: Final Outline
BUS 311: Business Law I
Instructor Brian Lahargoue
September 19, 2016
1. Acme Fireworks sells kinds of fireworks that include but are not limited to single-use and aerial display ground show. If an individual can think of it, Acme Fireworks can supply it. Acme Fireworks is a sole proprietorship that started out in a smal garageand is now looking to change its entity status. They are looking change because of the recent influx of larger business contract requests that will create a larger employee base, causing more liability risk, and higher demand for what some may deam either dangerous or even a hazzardous product which in turn will prompt evaluation of insurance coverage and …show more content…
1. This transaction unifies multiple state governance laws and ordinances into a single code which would best be covered uneder UCC. This would allow growth through ease and efficency with a single code that could affect interstate commerce. This will allow Acme Fireworks to make commerce with inquiring businesses from other states rahter than just it’s own.
III. Contract Creation
1. Firework contracts are provided by Acme Fireworks, which are binding and legal. All participants are required to abide by the contract agreement.
1. To get commission off of firework displays for periodic events held by other businesses. “An offer is a manifestation of willingness to enter into a bargain, which creates in the offeree the power of acceptance” (Smith, 2012).
1. Both parties are in agreement on the contract.
1. Price per display agreed upon.
4. Legal Capacity
1. All parties have full understanding of and are willing to enter into the contract.
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The employee/contractor is obligated to carry out all actions to certify compliance of the contract.
2. The employer is obligated to uphold their contract and ethical behavior of negligence.
4. Contracting versus Employment
1. Due to the job orders being habitual and irregula and not standard, it would be more beneficial and far better economically for Acme Fireworks to employ contractors rather than a full shop staff to put on contractual firework displays.
VI. Sole proprietorship versus Single Member LLC
1. Being taxed twice or just once is determined by how the business files their taxes and is the difference between Sole proprietorship versus Single Member LLC. Filing nad operating as Single member LLC would be more beneficial for Acme Fireworks.
1. Even though Acme Fireworks started out as a sole proprietorship, the expanding markets made the company realize it would be better off switching over to a single member LLC. The UCC warants a rate of control over competting markets and states while legally protecting the company’s limited legal liability in contractual ventures. Therefore the company may enjoy profits for years rather than worry over a difficult market or workforce.