Week 5.doc - Running Head BUSINESS LAW I APPLICATION BUS 311 Business Law I Business Law I Application Acme Fireworks Case Scenario Name Institutional

Week 5.doc - Running Head BUSINESS LAW I APPLICATION BUS...

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Running Head: BUSINESS LAW I APPLICATION 1 BUS 311 Business Law I Business Law I Application: Acme Fireworks Case Scenario Name Institutional Affiliation Instructor Date Table of Contents
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BUSINESS LAW I APPLICATION 2 1.0 Introduction ................................................................................................................................ 3 2.0 common law versus the Uniform Commercial Code (UCC) ..................................................... 4 3.0 Elements of an enforceable contract .......................................................................................... 4 3.1 Offer and acceptance ......................................................................................................... 5 3.2 Consideration .................................................................................................................... 6 3.3 The capacity of the parties ................................................................................................ 6 3.4 The intent of the parties .................................................................................................... 7 3.5 Free consent ...................................................................................................................... 7 4.0 Types of employment and relevance with agency law .............................................................. 8 5.0 Disadvantages of operating as a sole proprietorship in relation to personal liability ................ 9 6.0 Limited liability Company as the best alternative ................................................................... 10 7.0 Conclusion and recommendation ............................................................................................ 10 References ...................................................................................................................................... 11
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BUSINESS LAW I APPLICATION 3 1.0 Introduction Being a manager simply means doing a lot more by putting efforts and ensuring that the efforts employed benefit the business. The exercise requires that I assume the manager at Acme fireworks. The company started in the owner’s garage for the past two years as a sole proprietorship and has not changed since. The business has only employed 15 workers and therefore this calls for a staffing process where I can increase the number of employees to efficiently curb forecasted sales. This follows some inquiries from big companies seeking that the company manufactures fireworks for them regularly. This is however hindered by assumptions of the low market in the foreseeable future which means that the power and ability to pay the workers might decrease. This, therefore, necessitates a change in the form of business from sole proprietorship to another form. This paper will, therefore, consider this scenario, argue from a business law perspective on what basis the contract of the company and the owner was formed and also outline the various elements that validate the contract and render it enforceable. The paper will finally focus on why the business should change from sole proprietorship to another form of business entity and verify how the owner of Acme fireworks has entered into a contract and what needs to be done to reinforce the contract. Additionally, the paper outlines the type of law which governs this type of contract and the various reasons why the company should consider changing the form of business to entity from sole proprietorship to limited liability company. The paper has been segmented into various sections and organized as follows. The part that precedes the introduction discusses which type of law governs this contract. After this part,
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BUSINESS LAW I APPLICATION 4 the elements of an enforceable contract are discussed in relation to the contract. The third last part discusses the various types of employment and the relationships relevant to agency law, and the advantages and disadvantages of each type in relation to Acme Fireworks. The second last part explains why the business should change from sole proprietorship while the last part discusses why the business should convert to a limited liability company. A conclusion and
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