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Business Law Final Paper

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Final Paper – Acme Fireworks

As the manager for Acme Fireworks, I have been asked to determine if common law or the Uniform Commercial Code (UCC) will govern the contracts entered into by Acme Fireworks. In addition, I am to analyze whether the five essential elements of a contract have been met. Acme Fireworks is currently licensed as a sole proprietorship. As such, I will examine any potential personal liability they may have if a spectator was to get injured during a firework display. Further, I will compare the different employment types available to Acme Fireworks. Lastly, I will analyze and recommend a new business entity that would fit the needs of Acme Fireworks going into the future.
Governed by Common Law or UCC Common …show more content…

Even if the large orders for fireworks displays do not continue, Acme Fireworks must change its business entity before something catastrophic happens. In addition to the personal liability prospect should a spectator get injured during a firework display, other forms of potential personal liability also exists. As a sole proprietor, the owner of Acme Fireworks could face liability issues over unpaid business bills, contract disputes, personal injuries that occur on business property, damage caused by employees to others and assessments of civil fines and penalties for regulatory violations (Mancuso, 2014). Operating as a sole proprietor offers no personal liability protection to the owner. The owner could lose all of his personal assets and receive a judgment against him at a moments notice. If the owner insists on maintaining the business as a sole proprietor, then I would strongly recommend that he obtain limited liability insurance to protect his assets. The insurance coverage premium will add to the monthly expenses but it will be a set dollar amount. When reviewing different insurance policies, it would be imperative that it includes injuries resulting from the use of our products or services. It is recommended that enough insurance be purchased to cover the owner from common claims like fire, theft or accidental injury (Mancuso, 2014).
Employment

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