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You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks

Project Management

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You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he does not know what 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 by common law or the Uniform Commercial Code (UCC), and explain why.
• Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract.
• Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.
• Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.
• Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to 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 at least 8 double-spaced pages in length (not including title and 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 or negative, and defend your position. If multiple options, alternatives, and/or positions are present and are being rejected, you must also defend the reasons for rejecting an option.
• Must end with a conclusion that reaffirms your thesis.
• Must include at least five scholarly sources,
• Must document all sources in APA style
• Must include a separate references page that is formatted according to APA style

 

PAPER REQUIREMENTS

 

Class, for the final paper, you need to decide whether this scenario would fall under the common law or the UCC. This is a key part to the paper.

There is a test that one can use to determine which theory of law will govern when they are both present. Then, after deciding that, you can move through the four issues of the final paper.  

 Issue 1 –  You need to discuss if the consumer would sue under common law or the UCC. You need to define both and then explain why you chose the answer you chose.  

Issue 2 – You need to define and discuss all five elements of a contract. You need to discuss each element and prove to me it existed or not. Even if you do not think an element was present, you still need to discuss it. Come to a conclusion if a contract was present and why or why not.

Issue 3 – You should look at agency law employer-employee relationships and full time employees vs. independent contractor issues. You could also discuss employment at will here too and then recommend which type of employee would be best for Acme.

Issue 4 - You need to look at the liability the sole proprietor will face if a consumer is injured while watching a fireworks show.  You need to go into the theory of law that the consumer could sue under. This part of the paper will focus on the law and how Acme Fireworks could be liable under that theory of law. I want you to go into detail about the law here that a spectator would sue Acme under. Options you need to research could be negligence, strict liability, or product liability. Go into detail about how that law would apply.

Issue 5 – this issue is the most important part of this paper. You need to look at the liability the owner faces now and compare that liability to the liability he would face under a different entity. You need to explain why Acme should not operate as a sole proprietor first. Then, choose which entity protects the owner and employees in the best way. Look at tax liability, personal liability and entity formation when deciding which entity is best. You should only give your recommendation here as to the best entity. Do not go into a discussion about all the possible entities.