BUSINESSES WILL BE GOVERNED BY COMMON LAW OR THE UNIFORM COMMERCIAL C BUSINESSES WILL BE GOVERNED BY COMMON LAW OR THE U

Businesses will be governed by common law or the
Uniform Commercial Cod
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Week 5 - Final Paper
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:
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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.