Acme Fireworks, owned and operated by John Epson, has approached you, the manager of Acme to go over a contract he entered into with several large businesses. Acme is a business that sells fireworks, as well as, puts on aerial and ground displays for local communities. However, John is realizing the limited capabilities of his business under a sole proprietorship. Therefore, this paper will examine the validity of a contract, types of agencies, potential risk, and explain advantages and disadvantages of restructuring the business entity; my recommendation for John Epson would be to restructure his business as a limited liability company.
A bilateral contract is an exchange of promises, which can be written, spoken, or entered into by one 's …show more content…
An agency is a contractual agreement either implied or expressed; the agent is given actual authority to perform within the scope of their duties. An agency is governed by common law since it involves a service. As the manager of Acme Fireworks, I have apparent authority to hire employees on behalf of the principal. With the new expansion, determine and identify what types of employment; at will-employee 's and independent contractors.
At-will employees can be hired temporary, part-time or full-time. An at-will agent can terminate their agency at any time. They will not be liable to Acme Fireworks. As the manager, I have the legal right to terminate the agency when the agency is no longer needed. At the start of the expansion, I will hire ten employees to work temporarily. An agency is terminated when the service ends, no breach of contract has occurred. As of now we have fifteen at-will employees working for us full-time along with ten new employees. However, this does not mean I can fire an employee due to having a bad day or not liking the individual. I have the duty to the principal to act in good faith, treat the agents fairly, and not to be discriminate against them. Title VII of the 1964 Civil Rights Act, prohibits employers or managers to terminating an employee due to their color, national origin, religion, and sex. (Suzy, 2012 pg. 12.3) If …show more content…
Under an LLC, John can breathe a little easier knowing that the business is a legal entity; personal assets are protected in the event of a lawsuit. The biggest advantage for John, an LLC can be formed under one ownership, or he can choose to work with several partners. Personal liability is offered under an LLC, meaning partners is not liable for the actions of others, and only company assets are at risk, in the event of a lawsuit. Advantage, if any partner is involved in a lawsuit due to actions, they had no control of, limited liability protection is offered. However, the courts will have to look at a negligence claim to determine if John meets the criteria that will either find him responsible or not.
The corporation, incorporating Acme Fireworks is a tricker process than any other type of business structure. Incorporating the busi, limits John 's liability. The biggest disadvantage is the cost associated with forming a corporation, the state in which the business operates is controlled by state laws and regulations. An advantage, “corporation taxes are 15% and 25% lower than individual tax rates, resulting in a tax savings”. (Mancuso, A.
A bilateral contract is an exchange of promises, which can be written, spoken, or entered into by one 's …show more content…
An agency is a contractual agreement either implied or expressed; the agent is given actual authority to perform within the scope of their duties. An agency is governed by common law since it involves a service. As the manager of Acme Fireworks, I have apparent authority to hire employees on behalf of the principal. With the new expansion, determine and identify what types of employment; at will-employee 's and independent contractors.
At-will employees can be hired temporary, part-time or full-time. An at-will agent can terminate their agency at any time. They will not be liable to Acme Fireworks. As the manager, I have the legal right to terminate the agency when the agency is no longer needed. At the start of the expansion, I will hire ten employees to work temporarily. An agency is terminated when the service ends, no breach of contract has occurred. As of now we have fifteen at-will employees working for us full-time along with ten new employees. However, this does not mean I can fire an employee due to having a bad day or not liking the individual. I have the duty to the principal to act in good faith, treat the agents fairly, and not to be discriminate against them. Title VII of the 1964 Civil Rights Act, prohibits employers or managers to terminating an employee due to their color, national origin, religion, and sex. (Suzy, 2012 pg. 12.3) If …show more content…
Under an LLC, John can breathe a little easier knowing that the business is a legal entity; personal assets are protected in the event of a lawsuit. The biggest advantage for John, an LLC can be formed under one ownership, or he can choose to work with several partners. Personal liability is offered under an LLC, meaning partners is not liable for the actions of others, and only company assets are at risk, in the event of a lawsuit. Advantage, if any partner is involved in a lawsuit due to actions, they had no control of, limited liability protection is offered. However, the courts will have to look at a negligence claim to determine if John meets the criteria that will either find him responsible or not.
The corporation, incorporating Acme Fireworks is a tricker process than any other type of business structure. Incorporating the busi, limits John 's liability. The biggest disadvantage is the cost associated with forming a corporation, the state in which the business operates is controlled by state laws and regulations. An advantage, “corporation taxes are 15% and 25% lower than individual tax rates, resulting in a tax savings”. (Mancuso, A.