Business Plan: ACME Fireworks

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Acme Fireworks
Acme Fireworks is a known firework company that is in a retail business. This company is involved in selling fireworks as well as putting on the ground and large aerial firework displays. Acme Fireworks started as a sole proprietorship since its establishment two years ago. It has been growing gradually along with its increased productivity. Due to this anticipated growth, the company shifted from being managed by the owner alone to employing 15 additional workers. Due to the increasing demand and inquiries of large businesses concerning the constant generation of several fireworks displays, the sole proprietor is now considering the shift of business form to another. The options include partnership, cooperative, or limited liability company to address the fireworks display's growing demand. With that in mind, the thesis of this paper is to establish the most beneficial business form of Acme Fireworks while taking into consideration the governing laws of the business entity and contractual transactions, if the contracts involved are enforceable, personal liability during a situational crisis, and the hiring of employees.
Law governing the contractual transactions
In terms of contracts, it is vital to note that two different law bodies are involved – the common law of contracts and the Uniform Commercial Code (UCC). Most of their difference lies in the outcome of a contract dispute. These differences include the discharge or modification of a contract, the ability to collect the punitive damages, the chances of getting sued due to breach of contract, and recognizing the existence of a legal contract. Understanding the type of contract under each law is vital. The common law of contracts pertains to contracts in relation to services, insurance, real estate, employment, and intangible assets, while UCC is concerned with the selling goods and securities. In the case of acquiring a contract of Acme Fireworks with inquiring businesses, such contracts shall be governed with UCC. The contracts involved the sale of goods as well as securities. The dominant element of the contract is the goods that would be in control of the contract. More fireworks would be produced more compared to the number of personal employed. Thus, the UCC rule will be applied.
Whether contracts are formed and enforceable or not
A contract between the owner and the inquiring businesses is considered valid if the five elements of an enforceable contract are present. The five key elements of an enforceable contract include an offer, the acceptance of such an offer, considerations involved with the offer, the capacity to do contractual transactions, and the legality or legitimacy of the contract (Burnham, 2016). To understand these elements better, first and foremost, there must be the element of an offer. An offer is an invitation or a kind of demand created by an individual or a group of individuals for another while benefitting each other (Rogers, 2012). An offer is needed to enter a contract. The inquiring businesses require a regular supply of firework displays and made an offer to Acme Fireworks to provide for such services.
The need for acceptance follows afterward. Acceptance refers to the consent given as an agreement to the terms of the given offer. This serves as the acquiescence in entering a contract. In some situations, the other party may not agree fully to the proposed terms. To ready an agreement, this party can present a counteroffer for consideration (Burnham, 2016). Whether there's a counteroffer or not, as long as both parties agree to it, it can enter into a contract (Rogers, 2012).
Thirdly, there is a consideration. This pertains to anything discussed with a legal value that is demanded and was given for entering a contract. The service provider often receives considerations as an exchange for the provided services. This mostly comes in as a form of monetary compensation (Burnham, 2016).
Another element needed for an enforceable contract is the capacity to contract. This element refers to the mental competency of the involved party and is eligible to enter a contract. To be considered as having the capacity to contract, the involved party should be of legal age or not a minor, not mentally challenged or substance intoxicated during the time of contract (Burnham, 2016). The company's owner was able to start Acme Fireworks as a sole proprietorship, undertaking all the requirements and legal steps in obtaining a business license, which only implies that the owner has the capacity to contract. In addition to this, at the time when businesses were inquiring, the owner was able to issue a price per display for fireworks specifying the cost for each. This only shows that the owner is mentally competent and is sober at the time of the contract (Rogers, 2012).
The last requirement for an enforceable contract is the legality of the contract. This requires that the extent of the contract does not violate any rules and is within the law's confines and not against any public policy (Burnham, 2016).
In the case of Acme Fireworks, no offer can be noted since the businesses were only inquiring about the production of the fireworks display regularly and if Acme Fireworks can handle such requests. There was also no acceptance since there was no offer given in the first place. In terms of consideration, the price per display was agreed upon, but this only serves as a response to the inquiry. Therefore, there was no consideration. The contracts that will be made will be considered legal since it is not against any public policy. Moreover, both parties also have the capacity to contract. However, only legality and the capacity to contract satisfied the elements of an enforceable contract. There was no offer, no acceptance, and no considerations present. Therefore, the contract is considered not enforceable.
The potential liability to Acme Fireworks during accidents
Fireworks display is known to be exciting and enticing to watch. The operator of fireworks displays is responsible for its safe delivery to avoid any injuries and accidents. In instances where a third party is injured due to the alleged mishandling of fireworks, compulsory non-suits can only be filed if it is certain that the plaintiff failed to prove the case, and if the advantages of all evidence and favorable inferences are granted to the grounds of actions of the plaintiff (Smail, 1961). In addition to this, the plaintiff is allowed to prove the defendant's liability concerning the incidents while drawing from one of the following theories: namely, absolute liability, exclusive control, and the direct proof of negligence.
According to absolute liability, Acme Fireworks is held liable for any accidents or injuries as a result of its dangerous and hazardous activities even though it was handled with utmost care. In this doctrine, activities such as blasting can be considered for prosecution. However, most jurisdictions had to analyze this doctrine if it includes fireworks displays or not. This doctrine has been denied by some jurisdictions since a proof of positive negligence is required by the defendant. Absolute liability can be imposed concerning fireworks display suits if the fireworks display is considered illega...