W3 Assignment

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“Business Changes”
Theresa M. Odom
BUS 311
Roger Pao
August 26, 2014

Business Changes
There are many liabilities to owning, manufacturing, selling and using fireworks. The potential personal liabilities for injury to consumers caused by fireworks can be devastating to those involved but taking precautions and having warning labels/notices can reduce these risks. Taking on larger business sales of fireworks should include changing from a sole proprietorship to a LLC. With this transition there would also be an increase in employees or independent contractors in order to manufacture more product for the high volume of orders. Creating a valid contract is most important to have before making any of these necessary changes to a business or else there would be a devastating effect on the manufacturing party.

Potential liabilities – I will discuss how the use of a firework is at the discretion of the operator and not the manufacturer. The injuries resulting from the use of a firework would be on the operator to take care of and not the manufacturer unless there is a manufacturer defect.

Insurance and warnings – I will discuss how the U.S. Consumer Product Safety Commission has labeling requirements for fireworks, “Cautionary labeling warns consumers of the potential dangers associated with fireworks and tells them guidelines for use” (CPSC). There are also OSHA requirements, “OSHA and the American Pyrotechnics Association have created an alliance to help promote safety in the design and use of all types of fireworks” (OSHA).

Contract – I will discuss whether the owner formed a contract with the retailers by using the five elements in determining if a contract is valid. With each of the five elements I will define if the element has been met or needs further steps in order to make the contract valid.

Change in business entity – If this contract were valid and the owner wants to expand in order to fulfill these large...
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