Essays on Uniform Commercial Code

Introduction

There are several options open to Acme Fireworks. As a sole proprietorship, the owner is able to hire employees. The biggest benefit of a sole proprietorship is the easiness of dealing with taxes and the easiness of running the business. There are some drawbacks to being a sole proprietorship, such as the fact that the owner is personally liable for any legal situation that arises through various contracts or business deals (Dishman, 2010). The owner of Acme Fireworks should strongly consider upgrading his sole proprietorship because the business contracts appear like they may be permanent; regardless, as Acme is ...

Issue: What are the rights of the parties in this case and what will be the eventual outcome if the bank decides to bring up before the court the corporation and the guarantor? The guarantee given by the director is a personal guarantee, or as it is known as director’s guarantee, which is common practice by giving loans to companies. A personal guarantee is a promise that an individual gives to ensure the fulfillment of third party’s obligations or a promise that if the third party does not fulfill its obligations, the individual will do that instead. ...

Acme Fireworks

A number of factors are to be considered when it comes to taking the decision of the most favorable business structure for a specific commercial venture. Given the situation of Acme Fireworks, the pros and cons that need to be weighed before deciding on the business structure include the offering of highest protection, the highest investment return, and the most favorable rates of taxes. When there is a need for liability consideration, along with needs of employment and huge contracts, the recommendation to Acme Corporation owner would be to amend his status from the present sole proprietorship to a ...

US 311: Business Law I

You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and ...

Introduction

Acme Fireworks is a retailer that sells fireworks, large aerial display fireworks, and ground display fireworks. The owner of the business started the producing fireworks in his garage and in two years the business has fifteen employees managed by a manager. The business is operational as a sole proprietorship from the inception. Acme Fireworks expects the business to expand due to the recent offers and inquires by large organizations to provide firework displays regularly. The owner of the business has replied to the inquirers, and the parties have agreed to a price per display. The major costs of the ...

Define “contract” and briefly describe the four essential elements necessary for a valid contract to be executed.

A contract is an agreement between two or more parties that is enforceable in court. The four essential elements of a valid contract are capacities of the party involved, mutual agreement or assent, consideration and legality of subject matter.

Identify and describe the various ways that a contract can be classified.

Contracts can be classified broadly into three categories- 1) By type of formation, 2) By type of performance and 3) By enforceability. What is meant by a “mistake” within the context of a legal contract? Describe the different types of mistakes that exist. How do each of these types of “mistakes” impact the enforceability of the contract? In the process ...

A contract is one of the critical agreement that people and organizations go through on daily basis. It is worth noting that organizations and people go into a contract based on various reasons. There are critical components that must be considered when making some agreements. In analyzing the case study one, it is crucial to put into consideration various elements that must be considered for an agreement to be a contract. Some of the elements include acceptance, offer, consideration, as well as the intention of legal consequences. In case study one, there is no contract. These are based on the fact ...

1. What are the elements of Bankruptcy under Chapter 7, Chapter 11, and Chapter 13? Identify the key differences. Provide an example for each.

The elements of bankruptcy specified in Chapter 7 have to do with the sale of a debtor's property in order to pay off debts. Put simply, the debtor sells of non-exempt holdings to pay creditors. The elements of bankruptcy specified in Chapter 11 on the other hand, have to do with the reorganization of the organization. Put simply, the debtor files for bankruptcy which in turn allows him to continue with the organization and pay off creditors over a period of time. Lastly, the elements of bankruptcy mentioned in Chapter 13 involve bankruptcy protection. Under this law, the debtor has ...

Criminal Law

1. Parol evidence rule refers to the evidence of previous or simultaneous oral rule that written contracts may not be varied, contradicted, or changed by any previous or contemporaneous oral declarations. Parol evidence is admitted when a written contract does not include or contradicts the oral understanding reached by the parties. Under the parole evidence rule, when the court finds that that written contract has represented the final and complete statement of the parties to an agreement, it will no longer allow either party to submit parole evidence (Miller, 2011, p.187).

2. The statute of frauds refers to the requirement ...

Introduction

Business ownership and management play a vital role in the progress and development of a company. Certainly, there are different types of entities that follow particular policies of formulation and establishment. The Acme Fireworks is a special type of company considering changing its entity from the sole proprietorship. There are special laws that govern business contracts. Primarily, Acme will have to choose whether to go for those contracts governed by the Uniform Commercial Code (UCC) or the Common Law. The new business relationship that the company will enter requires a change in its entity formation, particularly because of the consideration of the laws. ...

Business Considerations for Acme Fireworks

[Institution Title] The risk of going into business is always great especially for sole-proprietors. A sole proprietor is one who single-handedly operates and handles the business. From a legal standpoint, a sole proprietor is identified as a single entity who acts as both the owner and the business itself . Given this distinct feature, a single proprietor therefore, maintains all legal accountability for the business particularly in terms of finances. In the case of Acme Fireworks, it is a small-scale business which rightfully started out using the sole proprietorship business type because it was able to take advantage some of the salient features of ...

Introduction

In the united states, each state has the authority to enact its own laws. The state laws are only applicable to the matters that regard a specific state in which the state has the jurisdiction. However, the federal laws apply to all the states. This in some sense works well for all the states. However, there was a need to create uniformity in the laws among the states that was desirable to all. According to Hermann (56), this led to the enactment of the Uniform Commercial Code act. One of the chief functions of the Uniform Commercial Code is to ensure ...

Introduction

The law of contracts is largely based on three set areas of law. The most ancient of these, and arguably the founding principles are based on common law. The second and the more specific governing laws are found on statutory provisions which may be different from one jurisdiction to another. The third area of law that offers substantial amount of fairness in the United States is the Uniform Commercial Code. Finally, with global commercial transactions becoming a key determinant on the general global economy, there are the more general laws of contact put forward by the United Nations called the ...

Introduction

The Uniform Commercial Code (UCC) is a law adopted by US legislators, which is concerned with many commercial issues, covering sale of goods, banks and securities interest. However, it does not apply on sales of real estate sale, security interest, employment contracts, marriage settlement and contracts involving labor.

The Crazy Jill

The proposal by a merchant to contractor to sell a good at a given stipulated terms and conditions is an offer. An offer goes hand in hand with acceptance; acceptance terms do not vary with the offer’s terms. If the acceptance terms vary with the offer terms, it will then not regarded as acceptance; ...

Implied Warranty: Uniform Commercial Code Section 2-314 defines implied warranty to mean that the goods sold shall be of merchantable quality unless excluded or modified in the relative contract. This section also includes food or drink served for consumption on the premises or elsewhere as a sale. Implied warranty therefore recognizes the following assumptions for goods to be deemed merchantable: (a) the goods shall be passed without objection in the trade as described in the contract. (b) if the goods are fungible, they are of fair quality as described in the contract. (c) the goods are fit for the general purposes for ...

Business Contracts

Business Contracts The Contract Should Be A Legally Binding Covenant Involving More Than One Person As A Witness During The Agreement. There Is A Need To Consider Some Necessary Factors Towards Both Sides Before Signing A Contract. Generally, The Fist Factor To Be Provided Towards The Deal Is Certainly The Readiness. The Readiness Is Basically, An Important Factor For Both Sides Involved In The Deal. These Factors Must Assure The Legal Binding Of The Covenant On Both Sides. Additionally, The Second Factor To Be Considered Is Called The Agreement Of An Offer. The Basic Role Of This Factor ...

Business

The American Law Institute and the National Conference of Commissioners on Uniform State Laws joined together on a project known as the Uniform Commercial Code; it is merely a recommendation for the states to adopt uniform laws. Under the UCC, if a seller obtained the good by fraud, then he has a voidable title. A possible way of obtaining through fraud could be by paying through a check which was dishonored later or purchasing from a minor or even purchasing on credit when he was actually in an insolvent condition. In such a case, the voidable title would give the power to the seller to transfer ...

Introduction

The following case study addresses JP Morgan’s Chase, the biggest bank in the USA, which has recently announced trading losses, which stemmed from investment decisions, made by the Chief Investment Office of the bank. After having realized the losses, the Office provided the Securities and Exchange Commission with reports, containing falsified data. The issues, considered in the Analysis part will refer both to the case itself and the legal background, which underlies consideration of the facts of the case. Concluding we will provide some basic recommendation referring to investments.

Analysis

- Means to achieve effectiveness of Securities and Exchange ...

Because The Widget Co specializes in equipment manufactured for automobiles and has recently been awarded a subcontract for parts to be used in hybrid automobiles, it is essential that the counsel to be retained has a focus on Industrial Law, particularly relating to Contract Law. Intellectual property may be another factor to be considered in reviewing the subcontract, and the company’s tax structure may need to be readdressed. To ensure that any legal recommendation from counsel is in accordance with the ethos of The Widget Co, the selection process sought legal sources that identified a similar ethos of integrity, sustainability, quality ...

Commercial contract

A report to the Charity’s Managing Director A commercial contract is an official binding arrangement between two or more parties through which they are indebted to carry out or not some given activities. Contracts can be drafted or verbal and designed a formal or informal approach (McKendrick, 2005). Most enterprises develop contracts in drafts to ensure the conditions of agreement are precise, usually looking for valid counsel while setting essential contracts. Contracts can entail all factors of an enterprise, such as recruiting, wages, worker safety, loans, and leases. A breach of agreement happens if one of the associates ...

Before the UCC and UCITA what was one of the first and major significant of the US government attempt to promote uniformity in commerce.

The primary aim of the interstate commerce Act of 1987 was to regulate the railroad (‘’The interstate commerce Act of 1987’’ 2008) The 1887 Act was launched purposely to prohibit railroads from permeating state boundaries since UCC and UCITA employed different concepts. For instance UCITA is aligned with matters related to computer, something that acquired relevance towards the end of twenty century. Different conditions present at the particular juncture in history have made these laws ...