Uniform Commercial Law Case Study

Acme is a Fireworks retailer who sells fireworks and also performs firework shows and airborne displays. The company started as a Sole Proprietorship and started out of the owner’s garage two years ago and now has increased the personnel to 15. Acme Fireworks has received requests from large companies. The companies are vendors that want to place large frequent orders of firework shows. Firework shows can be dangerous and it is a hazardous job. The company can be liable if something happens and someone gets hurt. There are considerations to put into place as Acme changes their entity from sole proprietorship to a limited liability company, first an evaluation is necessary to ensure there is a contract and if it meets the Uniform Commercial law (UCC) criteria or common law, hires the type of employment needed and solutions to make sure the increased workload is …show more content…
According to the text, an enforceable contract consists of five elements, the offer, acceptance, consideration, legality and capacity (Rodgers, 2012). The section of the paper will explain the five elements with researched material considering the situation and coming to a conclusion if the company actually has a formed contract.
Uniform Commercial Law and Common Law The Uniform Commercial law (UCC) is dealing with securities and the sales of goods in commercial transactions that are movable (Daskal, Melvin, 2008). The common law of contracts implies contracts of services such as employment, real estate, intangible assets and insurance (Daskal, Melvin, 2008). This section will compare the Uniform Commercial Code with the common law. The research will come to a conclusion if the contract should be governed by the common law or the UCC. There will be an explanation of why the particular law was chosen.
Sole Proprietorship and Limited Liability