Running head: ACME FIREWORKS 1
Acme Fireworks Expansion
Rhiannon Neufell
BUS 311 – Business Law I
Instructor David MacKusick
May 18, 2015
, ACME FIREWORKS 2
Acme Fireworks Expansion
Introduction
Acme Fireworks sells fireworks in all their myriad forms. Single-use, aerial display,
ground display; if there's a need, Acme Fireworks supplies it. Starting out as a garage endeavor,
Acme Fireworks is a sole proprietorship that is looking to change its entity status due to a recent
influx of bigger business contract requests that would mean a larger employee base, more
liability risk, and higher demand of a dangerous product (prompting evaluation of insurance
protocols and coverage). This act of expansion would lead to the company adhering to the
Uniform Commercial Code (UCC), as “an order or other offer to buy goods for prompt or
current shipment shall be construed as inviting acceptance either by a prompt promise to ship or
by the prompt or current shipment of conforming or non-conforming goods” (Uniform
Commercial Code, 2003, Sec. 2-206). This expansion would likely also prompt a change of
entity from a sole proprietorship to a single member limited liability company (LLC). With all of
these changes enacted, the company should prosper.
Contractual Governance
The UCC would describe this transaction series, as it “attempts to unify state laws
affecting commerce into a single code that all states could adopt to make interstate commerce
easier and more efficient” (Rogers, 2012, Unit III). Given the possibility that the inquiring
businesses are not necessarily in the same state as Acme Fireworks, the UCC would allow all
transactions to be made on the same footing, unlike in common law, where the laws are different
in regards to taxation and sales from state to state. However, each transaction would be evaluated
on a case by case basis, depending on a number of factors, such as state law, federal law, local or
regional supply and demand, etc. The UCC attempts to unify the varying state and federal
Acme Fireworks Expansion
Rhiannon Neufell
BUS 311 – Business Law I
Instructor David MacKusick
May 18, 2015
, ACME FIREWORKS 2
Acme Fireworks Expansion
Introduction
Acme Fireworks sells fireworks in all their myriad forms. Single-use, aerial display,
ground display; if there's a need, Acme Fireworks supplies it. Starting out as a garage endeavor,
Acme Fireworks is a sole proprietorship that is looking to change its entity status due to a recent
influx of bigger business contract requests that would mean a larger employee base, more
liability risk, and higher demand of a dangerous product (prompting evaluation of insurance
protocols and coverage). This act of expansion would lead to the company adhering to the
Uniform Commercial Code (UCC), as “an order or other offer to buy goods for prompt or
current shipment shall be construed as inviting acceptance either by a prompt promise to ship or
by the prompt or current shipment of conforming or non-conforming goods” (Uniform
Commercial Code, 2003, Sec. 2-206). This expansion would likely also prompt a change of
entity from a sole proprietorship to a single member limited liability company (LLC). With all of
these changes enacted, the company should prosper.
Contractual Governance
The UCC would describe this transaction series, as it “attempts to unify state laws
affecting commerce into a single code that all states could adopt to make interstate commerce
easier and more efficient” (Rogers, 2012, Unit III). Given the possibility that the inquiring
businesses are not necessarily in the same state as Acme Fireworks, the UCC would allow all
transactions to be made on the same footing, unlike in common law, where the laws are different
in regards to taxation and sales from state to state. However, each transaction would be evaluated
on a case by case basis, depending on a number of factors, such as state law, federal law, local or
regional supply and demand, etc. The UCC attempts to unify the varying state and federal
