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Question Description

You are the manager of Acme Fireworks, a fireworks retailer who sellsfireworks, puts on ground display fireworks, and large aerial displayfireworks. The company started in the owner’s garage two years ago andnow has 15 employees that you manage. The company started as a soleproprietorship, and the owner has never changed the entity. The ownerhas informed you that the company has received inquiries from severallarge businesses wondering if the company could create several fireworksdisplays on a regular basis. The owner told the inquirers that thecompany could fill such display orders, and a price per display wasagreed upon. It was discussed that most of the cost for a fireworksdisplay is for skilled labor, insurance, and the actual service ofsetting off the fireworks. No other details were discussed. The owner isanticipating that new employees will need to be hired, but he isworried that if the large orders for fireworks displays do not continue,the company will not have the funds to pay the new employees. The owneris now considering changing the business entity, but he does not knowwhat 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 bycommon law or the Uniform Commercial Code (UCC), and explain why.
  • Analyze whether the owner formed a contract with the businesses, andapply the five essential elements of an enforceable contract.
  • Explain the potential personal liability to Acme Fireworks if aspectator is injured by a stray firework from a fireworks display.
  • Discuss the different employment types and relationships relevant toagency law, and analyze the advantages and disadvantages of each typespecific to Acme Fireworks.
  • Explain why Acme Fireworks should not operate as a soleproprietorship. Recommend a new business entity, and provide rationaleto support your recommendation.

For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion.

The paper

  • Must be 8 to 10 double-spaced pages in length (not including titleand references pages) and formatted according to APA style
  • Must include a separate 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 ornegative, and defend your position. If multiple options, alternatives,and/or positions are present and are being rejected, you must alsodefend the reasons for rejecting an option.
  • Must end with a conclusion that reaffirms your thesis.
  • Must include at least five scholarly sources in addition to the course text.
  • Must document all sources in APA style as outlined in the Ashford Writing Center.
  • Must include a separate references page that is formatted according to APA style

Below is the course text

Rogers, S. (2012). Essentials of Business Law

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