Acme fireworks
Introduction:
Acme fireworks are the sole proprietorship dealing with the production of fireworks and displays of the framework. The company is directly associated with the damages and risks for the customers, so several inquiries are faced by the company related to the production (Haney, 2018). Still, the company is making progress and has a team of fifteen employees related to the production and management of the company. Meanwhile, the company’s orders are increased, and it becomes challenging for the company to hire new employees to increase the number of employees. Meanwhile, the hiring of employees is also associated with financial budget management. In this way, there is a need to make a plan or strategy to overcome the associated problems faced by the company. Firstly, the company can convert into LLC, making it easy to manage the associated risks and problems that may influence the production (Haney, 2018). Meanwhile, there is also an option for making the contract with associated companies for production. This report has a detailed discussion about the associated laws for making the contract with other companies. The information about the conversion of sole proprietorship into LLC is also provided in the report.
Common law and the Uniform Commercial Code (UCC):
The company is struggling because of financial and management issues, due to which there is a need to make a contract with another company for the sake of production. It is found that the company’s production is considered to be the major challenge and the hiring of new employees is not possible for the company. Meanwhile, the contract with another company is beneficial for producing and managing financial issues (Booth, 2008). The establishment makes a set of rules for making the contract in the business environment. It is the responsibility of Acme fireworks to follow the legislative process to make a legal binding with the associated company.
Firstly, there is a need to analyze the common laws for business. The company has to make the contracts with the associated companies in the hour of need. In this way, the contracts are considered to be legally binding between two companies. The company has to face severe penalties in the form of a breach of the contract. When the common law is applied for the contract, the company must follow the three steps: agreement, contractual intentions, and considerations (Wu, 2020). Acme fireworks must analyze the entire associated factors that are an essential part of the contract. The next process is the contractual intentions, according to which Acme fireworks have to describe the contract’s objectives comprehensively. The last process is the consideration, according to which the Acme fireworks have to consider the associated roadmap and framework of the contract. Acme fireworks’ legal responsibility is to follow the common laws and associated factors (Wu, 2020). In this way, both companies get the roadmap for working according to the achievement of desired goals. Meanwhile, the legal binding is also beneficial for the company because a breach in the contract becomes the reason for the penalty.
On the other hand, applying the Uniform Commercial Code (UCC) is compulsory for Acme fireworks while contracting with another company. When it comes to Uniform Commercial Code (UCC), it focuses on the associated financial factors included in the financial management. This law is also beneficial for the management of transactions that directly impact the success of the contract (Code, 2001). In this context, the company can also manage the associated financial risks that may influence the contract. Therefore, Acme firework will mention the terms and conditions of the Uniform Commercial Code (UCC) while making the contract with another company. It is the responsibility of the company to follow the legislation process for transactions because of limited resources for the management of financial resources (Code, 2001). It is found that Acme fireworks are already struggling because of financial issues, so the implementation of the Uniform Commercial Code (UCC) is beneficial for the management of financial issues and making an appropriate contract with the associate company.
Elements of an enforceable contract:
Acme fireworks make a plan to follow the legally binding contract while making the contract with the associated company for the sake of achieving the desired goals (Burton, 2008). When the company has to apply the legal binding contract, then the following five essential elements of an enforceable contract must be focused on by the company:
- An offer:
Firstly, the company has to provide the offer to the associated company related to their objectives and goals for the contract. The next company doesn’t need to accept the same offer as it is, but sometimes there is a need to make changes in the offers according to the requirement of the next company (Clack, 2016). It is worthwhile to say that the offer is not only provided by the clients, but the host may also offer according to its availability.
- Acceptance:
The next process is the acceptance of the offers because it is considered the initial step of the contract. Sometimes the offers are rejected, but sometimes the offer is accepted by the host company. It depends on the offers and the availability of the services in the host country. As Acme fireworks want to make a contract for production, there is a need to focus on the availability of the host company (Chen-Wishart, 2015). Meanwhile, the attributes of the host country also matter a lot for the acceptance process.
- Consideration:
After the acceptance, there is a need to focus on the prices and associated valuable processes referred to as the considerations. In this process, an audit is made by the financial department of both countries (Clack, 2016). The current audit report is mostly not finalized by the company, so there is a need to make changes according to the hour of need.
- Mutuality of obligation:
The next process is the mutuality of the obligation in which both of the companies finalize their responsibilities in the contract. When it comes to Acme fireworks, there is a need to make a contract to increase its production to achieve a competitive advantage in the target market. Meanwhile, when the company has to make the contract, there is a need to actively focus on the production and provide a roadmap (Chen-Wishart, 2015). In short, it doesn’t mean that a single company is responsible for the entire contract, but there is a need to participate by both companies actively.
- Competency and capacity:
The goals of Acme fireworks are clear, but there is a need to make KPIs for the successful completion of the project. Firstly, the company has to analyze the capacity and associated factors of the host company. Meanwhile, the company has to clearly describe its objectives, so both companies can easily perform their responsibilities to achieve the desired goals (Clack, 2016).
It is the overall legislation process that has to follow by the company for the sake of a legally binding contract. Acme frameworks make a plan for the contract by following the essential elements of an enforceable contract.
Liability for the damage:
The companies that are dealing with products related to personal dangers are at high risks of liability. In this way, it is the responsibility of the company to overcome the dangers associated with using the products. It is directly associated with severe personal injuries (Brans, 2001). Therefore, the establishment makes several laws according to the damage associated with the particular products of fireworks.
When it comes to Acme fireworks, the establishment sets severe penalties for fireworks damage. It is found that some liabilities are more than the total assets of the company. These associated risks are considered to be the major challenge for the company. It is the reason that the company insured the products and company. In this context, the penalty may be managed because of insurance, but the company still has to pay for the damage (Caskey, 2003). The insurance is only applicable for damaging the company, but it is not applicable for the damages made by the products. In this way, the insurance is considered to be beneficial for the company to some extent.
It is found that Acme fireworks are own by a single person, and the company is working as a single entity. It is liable to pay as personal liability in the hour of damage. If a stray firework injures a spectator from a firework display, the company is liable to pay as a single entity. The court has overview such cases as the law of precedent. In this way, the judiciary system finalizes severe penalties for dealing with such cases (Booth, 2007). It is found that the liabilities for such damages influenced the financial stability and are considered a major threat to its reputation.
Agency laws ad associated aspects in Acme Fireworks:
Agency laws are referred to as the legal framework that highlights the legal associations of principal and agent relations. When talking about the companies, these are responsible for utilizing the employees as the agents to achieve the desired goals. There is a need to highlight the employees hired by Acme fireworks to achieve the desired goals. Firstly, the employees in Acme fireworks are compensated agents responsible for working according to the company’s guidelines. These kinds of employees are beneficial for the company because they are working to achieve its objectives (Elie, 2019). On the other hand, these kinds of agents are also associated with different problems. The company is responsible for paying for the damage made by such kinds of employees. It is the only difference between the open contractors and the employees. The open contractor is responsible for the damage. Acme also has to make short-term contracts with the open contractor for production and overcome the associated problem.
There is also a relationship between the employer-employee and agent-principal relations exist in Acme. When it comes to employer-employee relations, the company can easily utilize the employees to achieve the desired goals (Walker, 2011). In this way, it is beneficial for the companies to complete the projects mannerly. Meanwhile, these kinds of relationships may also burden the employers. On the other hand, the agent-principal relation is beneficial for the company to use different agents to achieve the business objectives (Elie, 2019). The agents are the company’s representatives, and the company pays them for different purposes, including marketing, advertisement, production, etc.
Acme fireworks change into LLC.
When it comes to talking about Acme fireworks LLC., it is working as a sole proprietorship that is beneficial for the company but associated with several disadvantages. Firstly, the company is struggling because of production, so there is a need to increase the number of employees. A sole proprietorship is also struggling because of unlimited liabilities in the form of damage that is considered a big challenge. Meanwhile, a sole proprietorship is also dealing with a single entity. These are the problems that are directly associated with the sole proprietorship of Acme fireworks.
Now, there is a need to make a plan to overcome such problems, and the company can easily achieve the desired goals. Firstly, Acme fireworks have to change from sole proprietorship to Limited liability corporation (LLC). When it comes to LLC, it is considered to be a corporation with limited liabilities. It is found that the company has to pay several liabilities because of damage. The company insured the products and associated factors, but it is not enough to compensate for the damage (Booth, 2007). In this way, the conversion of sole proprietorship into LLC is considered the best option to overcome the associated problems related to liabilities.
There is also a need to increase the number of employees, but it is challenging for a sole proprietorship to increase the number of employees. In this context, the corporation can easily manage the associated aspects of employment and financial aspect. Therefore, the company has to convert into LLC, so it can easily manage the associated problems of employment that would be beneficial for the company’s progress (Kray, 2010). It is worth saying that the conversion of sole proprietorship into LLC can easily overcome Acme fireworks’ associated risks and problems.
Conclusion:
It is concluded that Acme Fireworks is making rapid progress in the target market. In this context, the company’s demand is increased, but there is a shortfall in the supply that is a challenge for the company. In this way, the company can easily manage the supply by increasing production by contracting with associated companies. The company has to follow the legislation process for the sake of making the contracts. The legislation process is associated with several factors that must be focused on by the company. Meanwhile, the company is also associated with liabilities that can be managed by converting into an LLC. The implementation of this plan is beneficial for the company’s progress.
References:
Haney, S. (2018). ACME Storage Area Network Solution. Journal of Online Higher Education vol, 2(2), 1.
Booth, R. A. (2008). Five Decades of Corporation Law: From Conglomeration to Equity Compensation. Vill. L. Rev., 53, 459.
Wu, C., Feng, Z., Zheng, J., & Zhang, H. (2020). Common Laws Driving the Success in Show Business. Computational Intelligence and Neuroscience, 2020.
Code, U. C. (2001). Uniform Commercial Code. Uniform Laws.
Burton, S. J. (2008). Elements of contract interpretation.
Clack, C. D., Bakshi, V. A., & Braine, L. (2016). Smart contract templates: foundations, design landscape and research directions. arXiv preprint arXiv:1608.00771.
Chen-Wishart, M. (2015). The nature of vitiating factors in contract law. Philosophical Foundations of Contract Law, Oxford University Press, ISBN, 978-0.
Brans, E. (2001). Liability for damage to public natural resources: Standing, damage and damage assessment (Vol. 61). Kluwer Law International BV.
Caskey, A. (2003). Regulation of Fireworks: Prohibit Unlicensed Pyrotechnic Displays before Proximate Audiences.
Booth, R. A. (2007). Going public, selling stock, and buying liquidity. Entrepreneurial Bus. LJ, 2, 649.
Elie, R., Mastrolia, T., & Possamaï, D. (2019). A tale of a principal and many, many agents. Mathematics of Operations Research, 44(2), 440-467.
Walker, B., & Hamilton, R. T. (2011). Employee–employer grievances: a review. International journal of management reviews, 13(1), 40-58.
Kray, B. R. (2010). Respecting the Concept and Limited Liability of a Series LLC in Texas. . Mary’s LJ, 42, 501.