Growing Acme Fireworks Essay

in that respect is much to consider when smashing a credit line. How testament you devour a shit, market, and distri nonwithstandinge your convergence. Are you go outing to reconcile full liability for your crossing and understanding the efficaciousities of what happens if your product is defective? Once that has been established, its important to possess sure that your line of reasoning dealings are in install. The strength of the amaze and what all it entails. Knowing that the legal document is important more so when things tend to go downhill. Above all is deciding which type of strain entity the party testament select especially if the company starts piazza humiliated and looks to expand. Which entity will outgo serve the growth of the company such as Acme Fireworks? Some socio-economic classs ago I watched a film called disturb club. The movie dealt with a ton of social sleep withs. wizard of the characters worked for a gondola company that would fly out their employers out to the body politics where in that location were car accidents. They worked almost as an insurance adjuster that would rise up and appraise a fomite once it has been in a wreck and determine, based on the damages how much they would award the car owner.However in the teddy here the employees would view accidents all over the country and decide if it would address more to retire the product or pay the total tip slay for the said accident. If the cost was too much to do a recall because the company would arrogate tariff for the accident if a legal philosophy suit is brought forth, however if it is cheaper to recall accordingly the necessary actions would be interpreted to recall the malfuncti cardinald part. Knowing this it is important that we label the products and its proper uses so if at that place is an issue thus it pot be said that the bring into macrocosm warned the consumer. In this way, any injury would not be the fault of Acme F ireworks, but the consumer. Just as the example with the cars above, if slightlyvirtuoso lights a firecracker in a closet and the firecracker goes off and injures the mortal then the company is not li fit being that it is neglecton the part of the consumer (Rogers, 2012). nowadays if the same individual uses the firework outside in an open area as is stated on the label and they light the firecracker and it goes off in their hand as soon as the commix is lit, then that is negligence on behalf of Acme. It must be understood that regardless of the product used, all products have the potential to cause consumer harm (Anthony, 1995).So that is why it is important to work up sure everything from the development of the fireworks to the warning labels have been kaput(p) over to make sure that the product is not faulty. If a fuse is too defraud in a product or if the sensible used to cause the firecracker to explode is too much then that is a defectively manufactured product. Anothe r issue could also be the type of firework that is made. Lets say for instance that one of the products has the tendency to go off in extreme temporary workereratures and is purchased and placed in areas of storage when the temperatures extreme then that is negligence on the consumer, however if the consumer was not made aware of this by the manufacture then the liability fall to the company. I recall about three years ago when I was in a car accident. Our brakes that we had from the car company had been recalled. We were send notices in the mail, phone, and email about the recall and were told to bring our vehicle in to make sure the brakes were not faulty and if they were they could be dictated free of charge. The deadline came and went a after it expired I was in a car wreck. I was making a turn in the rainfall and slammed my brakes and they were locked. I had the repair work do on the vehicle and was told that the brakes were faulty.I in varietyed the dealership of the issue and was told that the company was no eagle-eyeder liable because the deadline had passed. I was outraged and valued to file a lawsuit against the company, however on that point are deadlines and limitations to when a suit preserve be filed and in the state of Georgia, you have up to a year to file such deal. I missed it by 3 months and was inefficient to file suit against the manufacturer (Day, 2014). Another import issues are the contracts. on that point are 5 basic elements to a contract Offer, acceptance, contemplation, Legality and cogency (Rogers, 2012). Other retailers stated to the owner of Acme Fireworks that they wanted a trustworthy amount of orders filled on a regular bases for an undisclosed epoch frame and a price was agreed upon, this is the acceptance and offer section of the contract. The offeror, which in this case are the large retailers, makes an offer which once true byAcme Fireworks, creates a binding contract. Acceptance must be in some way agreed by all participants it may be verbal, symbolical, oral or written. The came from the retailers, they had a want from Acme to manufacture a product for them at a certain cost (Stim, 2010). Consideration is another element of a contract and what consideration brings to the table claim aim the whys and whats Why are we entering the contract and are you receiving? In this case Acme gets more money by being able to produce its products and grow their brand and the other retailers receive fireworks from Acme.However in this instance the owner of Acme may have taken on a task bigger than himself. This is a company with except 15 workers and to fill the orders with the clean retailers, more employees need to be hired. Not only do they need to be hired, but they need to be adroit as rise up. This must be done while filling out the orders. Here there is not much consideration given by the owner. How umpteen employees do we need, how much will the work flow increase, and how pine wi ll we have a contract with the other retailers. No duration period was given for the contract. Will this just be one order or is this something that will go on annually. What happen if the orders are not filled on a timely manner is the contract then void? Another question to ask is the electrical capacity and legality of a contract. Capacity to contract means the legal competence of a person to enter into a valid contract. Usually the capacity to contract refers to the capacity to enter into a legal agreement and the competence to perform some act. The basic element to enter into a valid contract is that s/he much has a sound mind. Recently there was an issue with an owner of the L.A. Clippers making comments about minorities. The group of owners in the league wanted him to sell his team.He didnt want to sell and wanted to fight it, however it came out that he does not have the mental faculties to croak the organization or make business decision so that responsibility was given to his wife. It came out that he has dementia, but he is fighting this claim as well. Once it is established if he chamberpot mentally make these decisions then the wife will not be able to go into discussions to purchase the franchise legally. Acme has 15 full time employees as it stands now. This is without the orders for the new retailers. What we know is that the owner guaranteed that we can take on more business, not considering the staff that we currently have. For the orders to be filled we would have to take on more labor force. Before thiscan be done we have to first consider what we have now. We currently have 15 people employed by Acme, to fill the new orders do we take on double or triple the size? If we do take on more people, would it be something on permanent or terminable bases? Employment is very important when business is involved. on that point are many things to consider when a workforce is involved. When it comes with dealing with explosives it is important th at we consider conclusion individuals who have experience with working with explosives and are well trained as well. This will cost more money for the company when it comes to hiring individuals that are trained to handle explosives. So these cant be regular workers that one can observe at a temp agency. However, we do not know how long to hire these individuals because there is no clarity as to the length of the contract, so the types of workers that we would have to hire would have to come finished labor force agencies (Smith, V., & Neuwirth, E.B., 2009). The great thing about a temp agency is the large pool of people that they have to choose from. on that point are times when many corporations view temp agency workers as people who are unskilled, however with the types of agencies that are around today, they can find highly skilled individuals that many companies would be hard pressed to do, being that they would have to exhaust many resources to do so.It has to be understoo d that this business started out of a garage a couple years ago and is now grown into a company that employees 15 people on staff. Now with the new revenue that will come into the company, Acme Fireworks will have to expand. Acme is a touch on proprietorship owned by one individual. This is the simplest organization structure to have. at that place is less paperwork as well as the tax implications. If there is a loss for that year you can use this loss to take off your other income on your personal drive home (Fishman, 2014). Though operating as a sole proprietorship is easier, it can also have some setbacks as well. The main problem is that theres no separation between the individual and the business with the sole proprietorship. That means that if something should happen in the business, the likes of taking on enormous contracts with no clear time line and limited planning and staff, youd be personally liable. For example, if Acme Fireworks business is ever sued or runs into pecuniary trouble, the owner would be personally on the hook and creditors and lawsuits can come after yourpersonal assets.That is an issue because if the company profits go to offset the debt, there is little to no money to run the company properly, expand, or take care of the employees. This is just one of the many things to consider when changing your business entity as well as deciding on what is best for the company as a whole. Acme Fireworks started out of a garage, like most businesses it is difficult to raise capital or arranging long term financing because of fewer assets. Also there is one join and one view which can scare big business opportunities away. This is why a Sole Proprietorship for the future of Acme Fireworks would not be feasible. Being in this type of entity makes it hard to expand. To grow and expand a company needs a formal business structure. So the cream is which entity to choose? With such an undertaking in such a short time, the risk would cause a s ole owner to want to form an LLC or incorporate his or her business.In the case of Acme Fireworks, it would be best to change the business entity to a corporation. With the promise of product to these new large retailers, Acme Fireworks would need more capital to grow the business as well as purchase the necessary material to make sure the new orders are able to fill as well as fulfilling previous obligations to the other retailers that we have business with. Choosing this entity protects the owner from legal liability, gives the ability to attract more investors through stocks, and has more structure where there is not just one voice for the business. The juxtaposition to this is the tax liability and the time and how much it cost to incorporate, unlike a sole proprietorship, incorporating a business takes much more paperwork, as well as tips that need to be paid to the state the business is in. One of the silver linings for the employees is that even if something happens to the o wner, or if he or she retires, the corporation will still be in tact unlike sole proprietorships.There are many things to consider when it comes to running a company, expanding it, and watching it flourish. There are many businesses that started out in a small garage, Steve Jobs, history Gates, even men like John D. Rockefeller. However, growth cannot take place without determination and risk. The best way to make sure that your ready to expand is to be sure where you want to take the company and have a sound plan as to the steps one will take to get there. Once you have a vision and financial saddle horse thenext step is to decide which type of business entity you want to be. There are many entities to choose from and no one is greater than the next. Its all about how you want to mold and model your business.ReferenceAnthony, S. (1995). admonishment marketers must do better with product warnings. Marketing News, (13). 4. DAY, J. A. (2014). Protecting Yourself from Statutes of Re pose. Tennessee ostracise Journal, 50(1), 33-34. Fishman, S. (2014). CHAPTER 2 Choosing the Legal Form for Your Business. In , Working for Yourself (pp. 15-54). Nolo. Smith, V., & Neuwirth, E. B. (2009). Temporary athletic supporter Agencies and the Making of a New Employment Practice. Academy Of Management Perspectives, 23(1), 56-72. inside10.5465/AMP.2009.37008003