Business Entity
Leanna Guevara
BUS 311 Business Law 1
Instructor Anthony Perez
September 15, 2014 Introduction Change usually creates uncertainty as well as the unknown, which is a break from the status quo that that generates the fear that is brought about by failure with no change. In every industry, the leaders seek method in order to implement changes in their organization successfully. Moreover, the goal that is associated with this move is usually to implement plan successfully in order to produce some results that are desirable that will shift the existing status quo. The achievement of this goal requires the understanding of the reason to pursue this change as well as the challenges to change (Gibson et al, 2006). This paper on the other hand focuses on employing the process of change within Acme Fireworks, a sole proprietor business entity to a Limited Liability Company (LLC).
Personal Liability
A sole proprietor is the simplest form of business organization, no formal action is necessary in forming a sole proprietorship. The disadvantage is that a sole proprietor has no limits on liability for business debts; thus if the business does not fare well, the sole proprietor can face personal bankruptcy (Rogers, 2012). An area of responsibility regarding liability that could affect Acme Fireworks is product liability. Products liability is the area of law that governs entities responsible for placing products on the market and determines who is liable if the recommended standard of care is not met .When a defective product causes injury the manufacture of the product, the distributor, the wholesaler, and the retailer that sold the product may all be liable(Mancuso, 2012). Product liability cases can arise from one of four legal theories intentional tort, negligence, strict liability negligence, or breach of warranty. Strict liability makes it much easier to hold manufacturers accountable for their products (Rogers, 2012).
Five Elements of a Contract
Contract law is significant to any kind of business whether it be large corporation or a small business. In order for a contract to be legally binding all of the following elements must exist. The first element of a contract is the offer; Acme Fireworks has received inquiries from several large retailers about filling large orders on a regular basis. The second element is acceptance, the owner of Acme Fireworks concurred to filling the orders. The third element is consideration, Acme Fireworks agreed on a price per unit. The final element to close a contract is capacity, both parties Acme Fireworks and the retailers we competent when entering the contract. It would appear that Acme Fireworks provided all elements of a valid contract with the retailers.
Employment Types In the process of entering a new contract and forming the need for new employees, Acme Fireworks may want to consider hiring part-time employees or contract employees. With limited funding Acme Fireworks cannot afford to hire more full-time employees. Part-time work is regular and ongoing, involves fewer hours than full-time work and usually set days or set hours. Non-wage benefits and entitlements (sick leave, annual leave and holiday pay) are received by part-time employees on a pro-rata (proportional) basis. Contract employees can be used for single projects or to replace workers on leave. Acme fireworks can hire contract employees to manufacture bulks of fireworks for the retail companies. Acme Fireworks would need to provide the employee with an agreement in writing that sets out the length of the employment contract.
Recommended Business As the owner of Acme Fireworks looks to shift the company in a new direction a recommend business would be a grocery delivery service. Grocery shopping can be a very daunting task. A grocery delivery service will help clients ease the anxiety and stress related with grocery shopping, by making it fast and simple to have their groceries confidently
