Acme Fireworks is a sole proprietor business enterprise that deals with selling of fireworks at retail. However, due to the high demand of the fireworks from various major companies, the company intends to change its mode of operations. The company has been in operation for the last two years and had an approximately 15 employees that I manage. Moreover, the company has received constant requests from other businesses to create regularly more fireworks displays. However, the owner has a feeling that the company will be at risk in case the project fails and at the same time the workers need to be paid.  Therefore, this paper will entail discussions on the type of new business entity and its formation. The discussion will comprise business contracts, analysis of the contracts, personal liability and the types of employment. Additionally, it will encompass a recommendation on the actual business entity.

The following are the outlines for the major headings that will be discussed in this paper.

Business Contracts

First, I will discuss on definitions of business contracts, common law and Uniform Commercial Code (UCC). Next, I will determine between common law and UCC, which one will govern the contracts of the business.

Analysis of the Contracts

Under analysis, we shall analyze the contract between the owner and the business. Also, we shall apply all the five necessary elements of an enforceable contract.

Personal Liability

First, I will define the term personal liability. Similarly, I will explain personal liability to Acme Fireworks and how the insurance policy will cover in case, a spectator gets injured.

Types of Employment

It entails discussions on the types of employment and relationships that are relevant to agency laws. Moreover, the discussion will also comprise analyzing the merits and demerits of the different types of employment, particularly to Acme Fireworks.

Recommendation

The recommendation will explain the reason the company should not operate as a sole proprietor. Also, it will entail a proposed new business entity and the rationale to support the idea.

References

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Meiklejohn, A. M. (2008). Redressing Harm Caused by Misleading Franchise Disclosure: A Role for the Uniform Commercial Code. Entrepreneurial Bus. LJ, 3, 435.

Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2012). Business. Mason, OH: South-Western Cengage Learning.

Sheleff, L. S. (2013). The future of tradition: Customary law, common law and legal pluralism. Routledge.