Week 5 Final Paper
Final Paper- ACME Fireworks: A New Business Structure
BUS 311: Business Law I
, Week 5 Final Paper 2
When starting a business, one of the biggest questions business owners ask themselves is
‘what type of business organization will I have?’ There are five types of business organizations,
but there’s no one right choice; the only right choice is knowing which one better suits a
person’s business. The five types are: sole proprietorship, a corporation, a partnership, a limited
partnership, and a limited liability company, or LLC (Rogers, 2012). In the case of ACME
Fireworks, the owner started his business as a sole proprietorship; however, with him wanting to
take on the new business deals from large companies, it puts his employees at risk for liability
issues. In addition, the owner is scared that if the large orders stop then he won’t be able to pay
the new employees for their work on the upcoming large display orders. In the event that the
owner steps away from the opportunity to grow his company, he would be selling himself short
on the types of employment that can be offered as well as the tax advantages he can benefit from
if he changes his business structure. Although sole proprietorship is the simplest form of
business organization (Rogers, 2012), it would be more beneficial for ACME Fireworks to
change its business structure to LLC.
When addressing the uniform commercial code (UCC, it has a mandate in modernizing
contract law, in addition to allowing exceptions from the standard law in contracts between two
parties. One key attribute of the UCC is to give people the opportunity to write contracts of their
choice. The contracts under the UCC requires for an offer made to be valid without consideration
if and only if the party offering the contract signs it. In addition, modification without
consideration will not void a contract for the sale of goods, and failure to state the price in the
contract for the sale of goods does not void the contract. The law also seeks to extinguish legal
formalities in making business deals, as this is in an attempt to enable making contracts in the
absence of lawyers and elaborate processes and documentation. “The moral rules of promise
Final Paper- ACME Fireworks: A New Business Structure
BUS 311: Business Law I
, Week 5 Final Paper 2
When starting a business, one of the biggest questions business owners ask themselves is
‘what type of business organization will I have?’ There are five types of business organizations,
but there’s no one right choice; the only right choice is knowing which one better suits a
person’s business. The five types are: sole proprietorship, a corporation, a partnership, a limited
partnership, and a limited liability company, or LLC (Rogers, 2012). In the case of ACME
Fireworks, the owner started his business as a sole proprietorship; however, with him wanting to
take on the new business deals from large companies, it puts his employees at risk for liability
issues. In addition, the owner is scared that if the large orders stop then he won’t be able to pay
the new employees for their work on the upcoming large display orders. In the event that the
owner steps away from the opportunity to grow his company, he would be selling himself short
on the types of employment that can be offered as well as the tax advantages he can benefit from
if he changes his business structure. Although sole proprietorship is the simplest form of
business organization (Rogers, 2012), it would be more beneficial for ACME Fireworks to
change its business structure to LLC.
When addressing the uniform commercial code (UCC, it has a mandate in modernizing
contract law, in addition to allowing exceptions from the standard law in contracts between two
parties. One key attribute of the UCC is to give people the opportunity to write contracts of their
choice. The contracts under the UCC requires for an offer made to be valid without consideration
if and only if the party offering the contract signs it. In addition, modification without
consideration will not void a contract for the sale of goods, and failure to state the price in the
contract for the sale of goods does not void the contract. The law also seeks to extinguish legal
formalities in making business deals, as this is in an attempt to enable making contracts in the
absence of lawyers and elaborate processes and documentation. “The moral rules of promise
