BUS 311 Business Law I
[ August 25, 2014 ]
As the owner of Acme Fireworks you have asked me, you manager, to review and explain some ideas to you. In the following pages I have explained the potential personal liability for injuries to consumers and what must be on our labels for safety. Analyzed the newly formed contracts with the retailers and the employment and expansion that are needed for Acme to go along with the new contracts, and then concluding with the change of the business entity.
As we go forward with the growth of the business, we want to be sure things are done properly and that we will meet or exceed our ...view middle of the document...
The company will need to take steps to ensure that the customer is protected and the integrity of the company is not compromised.
Accepting personal liability for the letting of fireworks requires that the customer has a working knowledge of the operation of the pyrotechnics. There is a great level of responsibility accepted by our company for selling fireworks and to the consumer letting them off. Consumer accepts full responsibility for any damages in the use of products purchased from Acme Fireworks.
From what you have told me already, Event Palace and Party Store have submitted a request for large quantity orders on an ongoing, regular, basis. You have responded that Acme Fireworks agrees that we have the ability to fulfill the large orders requested, furthermore, both retailers and Acme Fireworks have agreed on a cost of $500.00 per case. As your manager, this constitutes an implied contract with these retailers and it is appropriate to act upon it quickly and get a simple contract drawn up for each of the retailer, signed by the proper people. First off I will give you some of the definitions of what should be in the contract, i.e. offer, terms, clauses, and acceptance, once complete, I will have an example of what I think the contract should contain.
An offer must, “contain a clear promise to enter into a contract, must have reasonably certain terms, and must be communicated by the promisor (the person making the promise ) to the promise (the person to whom the promise is made)” (Rogers, 2012). Terms are what we and the retailers want from each other and what we expect in return; clauses are ways out of the contract if something unforeseen happens to either of the retailers or Acme. Finally, acceptance is where the responsible parties’ purchasing personnel, would sign the contract.
Acme Fireworks will provide Event Palace with a minimum of 500 cases per month at a cost of $500 per case for the next two years, with the understanding that Event palace must place an order no later than 3 weeks prior to their next shipment. If Event Palace needs a quick shipment or a special order of $300 or more Acme would need to have that item in stock or they would need to add it to the next order, or pay additional prices for rush delivery.
If an unforeseen and/or uncontrollable event happens to either party, they may have the option to back out of the contract, for a negotiated period of time, for repairs or termination of the contract, if necessary. Conditions such as but not limited, but not limited to, weather conditions, store, warehouse, or personal property damage. The contract will be kept in force, until canceled or terminated by agreed upon terms by all parties.
Once we get the contract back from the retailers we need to sit down with Nancy, our Human Resources, and get started with the hiring. For hiring the new employees that we will need for the addition work, the steps of advertising for...