BUS 311 Business Law I
November 9, 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 consumer and customers’ standards at Acme Fireworks.
Personal Liability As you are aware you our company needs to be sure that our consumers are aware of two key things their own liability, and warnings. Our consumers need to be aware that when they use our products that they alone are responsible for any damage done by the firing of the firework is their responsibility and not ours. Insurance companies are saying “you can’t always control who is watching your fireworks display and never know who might file a lawsuit against you for any bodily harm caused by a roge firework. Despite how complicated fireworks liability may sound, making sure you’re covered in the event of injuries or property damage is as simple as finding the right custom fireworks insurance plan that can be designed exactly for your needs (Xinsurance, 2009).” Our labels as you know must contain the following items for consumers’ safety and per Title 16 of the Code of Federal Regulations. Every fireworks device must have: A label with a signal word, either WARNING or CAUTION; A statement describing the hazard(s) associated with the device, such as A statement describing the hazard(s) associated with the device, such as "SHOOTS FLAMING BALLS" or "EMITS SHOWERS OR SPARKS"; And information describing the actions
References: Consumer Products Safety Commission (2001) Fireworks Business Guidance Retrieved on August 24, 2014 from https://www.cpsc.gov/en/Business--Manufacturing/Business-Education/Business-Guidance/Fireworks/ Rogers, S. (2012). Essentials of Business Law. San Diego, CA: Bridgepoint Education, Inc. Small Business Administration (2014) Employee Handbook Retrieved on August 24, 2014 from http://www.sba.gov/content/employee-handbooks Small Business Administration (2014) Limited Liability Company Retrieved on August 24, 2014 from http://www.sba.gov/content/limited-liability-company-llc Small Business Administration (2014) Sole Proprietorship Retrieved on August 24, 2014 http://www.sba.gov/content/sole-proprietorship-0 Xinsurane 2009, Event Home Fireworks Liability Insurance, retrieved on August 11, 2014 from http://www.xinsurance.com/blog/event-home-fireworks-liability-insurance/