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Implementing a New Business Structure

In: Business and Management

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Implementing a New Business Structure at Acme Fireworks

Timothy Taylor
BUS311 Business Law I
Beverly Rudnick
September 28, 2015

Implementing a New Business Structure at Acme Fireworks

As the operational needs of a business change, the business must change with it. During expansion, it must evaluate its position and its future potential and make decisions as to the structure and operations of the company, current and future obligations, its risks, the kind of workforce that is necessary, and how to implement this body of people for maximum effectiveness and profits.

Acme Fireworks is no different. Acme Fireworks is a fireworks retailer and display company that has grown from humble beginnings in a garage to 15 employees in the last two years. It is a sole proprietorship. But the company is experiencing an increase in sales and interest. The company is also exploring the option of expanding into fireworks displays for venues as several local businesses have made inquiries about supplying such a service. This may facilitate future growth, but how? The owner is asking the manager to explore and recommend options.

Of particular importance, the owner of Acme Fireworks has been in preliminary negotiations with business customers inquiring about large fireworks displays. The owner explains that the orders could be filled, but has not specified a delivery. It was also discussed that most of the cost of a display is for skilled labor, insurance, and the service of setting off the fireworks display. A price per display was agreed upon, but no other arrangements have yet been made.

While historically the right and power to contract are covered under common law and the Constitution to the extent possible and fair, the UCC has incorporated the common law functions of contract into the code. "The UCC is a summary of traditional common law...

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