Acme Fireworks Business

Acme Fireworks Business
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Abstract
Acme Fireworks is a prominent retailer whose big responsibility is to sell fireworks, put on display varieties of fireworks with the intention of attracting more customers and engage in the display of big aerial fireworks. The business was established two years ago inside the owner’s garage, and over the time, it has achieved positive results and so far, the company has employed a total of 15 employees. Since its formation, the company has been operating as the sole proprietor, and up to date, no major changes have been made. As the manager of the company, I have been informed that there are massive inquiries from large business organizations wondering whether the Acme Fireworks Company can make many fireworks displays on a regular basis to meet the new demand of the market.
Key words: sole proprietor, demand, display, fireworks, company
Thesis
Therefore, as the manager, I will discuss various issues which will enhance successful operations of Acme Fireworks Company; particularly the laws which the company must abide to become successful and avoid any conflicts with the authority.
Introduction
A good business plan is an official and formal statement that outlines the goals of business, reasons why the goals are attainable and the plans put in place to achieve those goals. A business plan can also include some background information about the company or the group that is trying to reach the said goals.

The plan can range from a document with few sentences to ones with more than a hundred pages depending on what the company wants to achieve. The business plan for Acme Fireworks was guided by the law. A good business plan may want to target some vital changes in branding and perception by the client, customer the larger community and even the taxpayer. When there are some major changes required in the company a business plan of three to five years is required.
For Acme Fireworks to come up with detailed and comprehensive business plan which will saw extensive increment in Acme Fireworks with the new business from companies which are on a day to day basis requesting fireworks, there is an urgent need to look into few different areas of the business organization, make the necessary changes of entity sole proprietorship, contracts, liabilities and increasing of the client base. A comprehensive discussion was made, and it was established that most of the cost incurred in the production process is for the skilled labor, insurance and also actual service setting off the fireworks. It is anticipated that there would need to hire new employees to work in the firm, but there is worry that in a situation where large orders for the fireworks do not continue, then there would be challenges of paying new employees by the company. While increasing the new client’s base exposes the organizations to new risks particularly on affairs of hiring new employees, having protection from the employee’s lawsuits will be in the owner’s best interest. In order to reach some of the conclusions, a lot of consultations were made in the company.
Determine if the contracts with the business will be governed by common law or the Uniform Commercial Code (UCC) and explain why.
The major issue of concern in this business plan is whether Acme Frameworks will be guided and governed by the countries common law or by the uniform commercial code. The contract of Acme Company should be governed by Uniform Commercial Code (UCC). The law covers critical aspects and ensures that there would be successful transactions between the Acme Fireworks Company and the clients. The law covers the sales of goods, and the entire commercial transactions carried out in an organization. The sales of goods are defined as the process of initial buying and selling of tangible goods. Commercial activities, as used in this context refers to the various activities such as handling of cashier checks, banks transactions and the personal transactions which ensures that the two parties involved in business make a successful transaction (Simpson, 2014). The UCC process is crucial because the entire process is cost-effective solutions which secure the inventory of the company in a dignified manner. The customer’s involvement will be only under the security agreement. While the contract in most cases might be a stand-alone document, there are instances where other interrelated documents are added to the standard credit application. The security interest will, therefore, collateralize the Acme Fireworks Company through the inventory, equipment, the account receivable and the proceeds from the sales of the inventory. The entire filing process will eventually protect all the transactions of the organization, and the bottom line is that it protects the company as the secured creditor. The buyer and the seller, which is Acme Fireworks Company, will eventually be protected and the law ensures that the business is carried out in the peaceful environment. Any violation by any given party will be punishable by law. Uniform commercial code in most cases covers both the buyer and the seller including the company itself. Not only Acme Fireworks Company, but most companies in the United States of America are governed by the uniform commercial code.
Analyze whether the owner formed a contract with the businesses, and apply the five elements of an enforceable contract
The owner of Acme Fireworks Company formed the agreement with the business. In essence, contracts are used in various forms and used in different situations within the day to day life. While some contracts are involving than others; other contracts are essential and fundamental to organizational success (Rodeers, 2012). It’s true that so many elements are incorporated in many contracts. Despite this every contract is important to the company and should be taken with a lot of seriousness. However, as applied in the Acme Fireworks Company, there are five fundamental elements of contracts discussed below;
(i) Offer
An offer implies that the expression of ability or willingness by one party to have a contract with specific irreducible minimums with another party with the core knowledge that the contract will eventually become binding when accepted by the business person to whom it is offered. There are various ways of making an offer such as behavior, email, and even the letter. The principal message here is that it should always convey the basis through which the offering party’s willingness to contract.
(ii) Acceptance
This element symbolizes the terms through which it must be accepted by the offer presented. In the case of Acme Fireworks, it could imply to the organizational accepting buyer’s offer to purchase the raw materials needed to make the fireworks. In situations where the party responds to offer and make some changes to the offer, then, in reality, the party is not accepting the offer (Simpson, 2014). Instead, it is participating in the presentation if the counteroffer. Before accepting any offer, it’s good for the company to go through the terms of the agreement in case there is some clauses that are not clear.
(iii) Consideration
Here, it is what the organization present in exchange for something in a given contract. In most cases, it is monetary compensation in exchange for a particular product. The main aim of starting any business is to make a profit at the end of the day therefore, an organization need to be very careful when it comes to signing contracts. Most organizations will offer some of their products in exchange for money.
(iv). Capacity
This element forces the two or more parties entering into a contract to come up with a common understanding so that after the agreement all the companies benefit.
(v) Lawful Purpose
This is the last element, and it states that the parties entering into a contract must always be in legal purpose and not for any form of illegal purpose in any given circumstances. Contract signing is a common thing to business parties. Some companies in the past have gone from good to bad by entering into contracts that are illegal. The company’s lawyers should make sure that the contract they are signing on behalf of their company is legal and this will help to claim later in case there is a problem.
Explain the potential personal liability to Acme Fireworks if a spectator is injured by astray firework from a firework display
Companies dealing with fireworks are supposed to be very careful when it comes to work display. In the process of display a spectator or even one of the workers in the company can be injured accidentally. In most cases, if a spectator is injured during some fireworks display then the company becomes reliable. Performing fireworks displays eventually develops a personal level of personal liability to the organization which is Acme fireworks due to the high chances of stray firework injury spectators. The skilled labor who will be responsible for setting off the fireworks will be regarded the agent, of the Company, who will be the principals within the scenarios (Francisca, 2011). With the adequate relation of the agency between the principle and agent, there would be comprehensive expectations of service which will be carried out within the agents and the other parties. Required duties of accountability, performance, obedience, and loyalty are all the essential expectations that the principal expects from the prospective agents to ensure that everything is effective in the organization. The principle, which is the Acme Fireworks, owes a duty of indemnification, compensation, cooperation, and reimbursements to the entire team of agents. Therefore, the company according to its rules and regulation is in a good position to compensate the spectator injured in the process and this will save the reputation of the company.
Discuss the different employment types and relationship relevant to agency law and analyze the advantages and disadvantages of each type
The major form of employment is a full-time basis, temporary and part-time employees. However, this varies from one company to another. Some organizations prefer permanent employees while others prefer part time workers. Other companies offer short time contract to workers when there is so much work to be done. There are both benefits to full time and hourly paid employees but it is the full time workers who enjoy most of the privileges. Acme Fireworks has a total of 15 employees though it has not been categorized. Employees working in the organization are paid in hourly or salary waged and also depending on the work they have done.
When it comes to full-time type of employment, the employees have advantages such as enjoying medical cover, job security, and social security benefits. When people are looking for employment the first thing that comes in their mind is money and the job security. If an individual feels that he is secure at the place of work, they tend to increase their productivity. The law requires that every worker who is fully employed should be provided with medical cover by the company. Despite the benefits, the employment type might create monotony and kill innovation. For the employees who work part-time, the advantage is that they maximize extra time to make more money (Stanley, 2009). Some part time employees even make more money than the permanent ones as the money factor motivates them to work for extra hours. When workers are well paid they are motivated to give out their best skills and this might explain why at times part time workers are the best to work with. The drawback of this issue is that they do not enjoy benefits earlier discussed which are enjoyed by employees working full time. Lastly, temporary employees have the advantage of working on other jobs hence maximizing income. A temporally employee may work in more than two different organizations because they spend few hours in each job place. The major challenge faced by such employees is that they lack job security. However, permanent employment is the best in a company because the workers since a performance contract which they work hard to fulfill. Hardworking permanent employees have also an advantage when it comes to promotion from one level to another unlike other workers who are in the company for a short time in a day. However, no company can survive in a competitive business environment without the three forms of workers. Sometimes there is heavy work load that will outnumber the permanent employees therefore; the organization is forced to recall some of the part time workers.
Explain why Acme Fireworks should not operate as a sole proprietor. Recommend a new business entity and provide the rationale to support your recommendation.
Coming to the issues of business expansion, which implies to more profit for the Acme Fireworks Company, we should comprehend on transforming the company from a sole proprietorship and make it a Limited Liability Company (LLC). As a manager, I strongly believe in the idea that Acme Fireworks should no longer operate as the sole proprietor. Limited Liability Company will guard the owner from the invisible lawsuits and debts that may occur in future (George, 2012). As the manager, I see LLC also as the preferred form of organization which will enhance the organizational growth. Furthermore, the idea of transforming the company to LLC will become more widely Accepted by various stakeholders such as private states, the considerable tax benefits of the LLC form will also become much stronger.
Conclusion
When Acme Fireworks begun its operation, it started up as a sole proprietor. Due to demand of more products and services, there were multiple requests from stakeholders’ for new and bigger displays of fireworks. The demand for more products from the clients was due to good management in the company and skillful workers who gave their best to make sure that customer are satisfied. As the organization expands, there are normally great opportunities and challenges encountered by the management. That’s why there were issues of legal issues which had to be addressed before the actual implementation process. For example, the UCC on governance and how the UCC will eventually provide stronger laws to protect the company were extensively discussed in the essay. There is room for more studies to establish how Acme Fireworks Company will emerge to be the best. With good management, the company has emerged as one of the best in providing fireworks.
Reference
Francisca,C. (2011). What are the Ethical Responsibilities in an Organization? Albany, NY:USA
George, F. (2012). Liability for Intentional Torts, Negligence and Strict Liability. Emmaus, PA:Rodale
Rodeers, S. (2012). Essentials of Business Laws. San Diego, CA: Bridgepoint Education, Inc.
Simpson, M. (2014). The USA Small Business Administration. Albany, NY: USA
Stanley, M. (2009). Fireworks Injuries. Washington, DC: Cato Institute