Business Law: Acme Fireworks Company
Acme Fireworks Management
Latisha Bogan
BUS 311: Business Law I
Instructor: Shawn Grimsley
March 16, 2015
Introduction
Acme Fireworks Company is a fireworks retailer who sells fireworks, puts on ground displays and large aerial fireworks. As the manager, it is my job to determine if the inquiries from the large businesses can be fulfilled and if the contracts with these businesses are enforceable. In order to manufacture the increased amount of fireworks needed, the owner will be required to increase the workforce and also be able to adjust when the work volume decreases. It is also my job to choose which business entity will best suit Acme Fireworks. Fireworks are very dangerous yet beautiful. In this paper, I will analyze the …show more content…
Most of the costs were discussed for labor, insurance, and setting off the fireworks but no other details were discussed. The contracts with these businesses will be governed by the Uniform Commercial Code (UCC) under the statute of frauds. According to Rogers, “the statute of frauds states that contracts for the sale of goods for a price of $500 or more are not enforceable unless they are evidenced by a signed writing” (Rogers,2012). The contracts made by the businesses fall under the exception of the statute of frauds dealing with specially manufactured goods. These contracts are legally enforceable.
Elements of a Contract
In order for a contract to be enforceable, it must contain five essential elements. These elements include: an offer, acceptance, consideration, legality, and capacity. When the owner received inquiries from the companies about creating displays, this was the beginning of a formation of a contract. When the price was discussed, consideration was formed. The owner told the retailers that he could fill the display orders, he accepted the offer. The selling of fireworks is a legal transaction and the retailers obvious run businesses so they have capacity. …show more content…
Acme Fireworks should operate as a Limited Liability Company. This entity allows the business to run similarly to a sole proprietorship but there would be separation from the owner and the business. Switching to an LLC will also allow the owner to have partners which will allow any financial risks to be shared with others. Forming an LLC also comes with a wide range of benefits for both the owner of the company and the employees. These benefits include tax deductible benefits such as health insurance, travel, automobile, entertainment, and recreational deductions. There is a greater source of capital available to LLC which would help Acme Fireworks sustain the increase of
Latisha Bogan
BUS 311: Business Law I
Instructor: Shawn Grimsley
March 16, 2015
Introduction
Acme Fireworks Company is a fireworks retailer who sells fireworks, puts on ground displays and large aerial fireworks. As the manager, it is my job to determine if the inquiries from the large businesses can be fulfilled and if the contracts with these businesses are enforceable. In order to manufacture the increased amount of fireworks needed, the owner will be required to increase the workforce and also be able to adjust when the work volume decreases. It is also my job to choose which business entity will best suit Acme Fireworks. Fireworks are very dangerous yet beautiful. In this paper, I will analyze the …show more content…
Most of the costs were discussed for labor, insurance, and setting off the fireworks but no other details were discussed. The contracts with these businesses will be governed by the Uniform Commercial Code (UCC) under the statute of frauds. According to Rogers, “the statute of frauds states that contracts for the sale of goods for a price of $500 or more are not enforceable unless they are evidenced by a signed writing” (Rogers,2012). The contracts made by the businesses fall under the exception of the statute of frauds dealing with specially manufactured goods. These contracts are legally enforceable.
Elements of a Contract
In order for a contract to be enforceable, it must contain five essential elements. These elements include: an offer, acceptance, consideration, legality, and capacity. When the owner received inquiries from the companies about creating displays, this was the beginning of a formation of a contract. When the price was discussed, consideration was formed. The owner told the retailers that he could fill the display orders, he accepted the offer. The selling of fireworks is a legal transaction and the retailers obvious run businesses so they have capacity. …show more content…
Acme Fireworks should operate as a Limited Liability Company. This entity allows the business to run similarly to a sole proprietorship but there would be separation from the owner and the business. Switching to an LLC will also allow the owner to have partners which will allow any financial risks to be shared with others. Forming an LLC also comes with a wide range of benefits for both the owner of the company and the employees. These benefits include tax deductible benefits such as health insurance, travel, automobile, entertainment, and recreational deductions. There is a greater source of capital available to LLC which would help Acme Fireworks sustain the increase of