NEED 10 PAPER You are the manager of Acme Fireworks. The company started in the
ID: 2630694 • Letter: N
Question
NEED 10 PAPER
You are the manager of Acme Fireworks. The company started in the owners garage two years ago and now has 15 employees that you manage. The company started as a sole proprietor, and the owner has never changed the entity. The company makes and sells fireworks. The owner has informed you that the company has received inquiries from several large retailers about the companys ability to fill large orders on a regular basis. The owner told the retailers that the company could fill such orders, and a price per unit was agreed upon. No other details were discussed. The owner is anticipating that new employees will need to be hired but is worried that if the large orders do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity but does not know what entity to form or how to form it.
The owner has asked you to do the following:
For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion. OUTLINE BELOW
Pakroo, P. H. (2014). CHAPTER 1: Choosing a Legal Structure. Small Business Start-Up Kit, 7-28.
Explanation / Answer
Potential personal liability for injuries to consumers caused by the product.
Product liability is the area of law in which manufacturers, distributors, suppliers and retailers are held responsible for any injuries products cause. Regardless of any contractual limitations of liability, if a product or any of its component parts are defective its manufacturer may be liable for damage under the Consumer Protection Act (CPA) or the common law of negligence.
An action under the CPA or for negligence can be brought for death, personal injury and damage caused to private property as the result of a product defect. Neither type of action can be used to compensate for pure economic or consequential loss.
This guide considers claims for a defective product under the Consumer Protection Act.
Owner formed a contract with the retailers applying the five elements as discussed from Week Two to the hypothetical facts.
Issue
The IRAC commences with a statement of the issues or legal questions at hand. In the issue section of an IRAC it is important to state exactly what the question of law is. Each issue is often treated separately. The "Whether...when" or "Under (law) ... does" formats may be of service in framing the issue.
Rule
The Rule section of an IRAC follows the statement of the issue at hand. The rule section of an IRAC is the statement of the rules pertinent in deciding the issue stated. Rules in a common law jurisdiction derive from court case precedent and statute. The information included in the rules section depends heavily on the specificity of the question at hand. If the question states a specific jurisdiction then it is proper to include rules specific to that jurisdiction. Another distinction often made in the rule section is a clear delineation of rules that are in holding, and binding based on the authority of the hierarchy of the court, being ratio decidendi, and being the majority ruling, or simply persuasive. There are occasions when rules are adopted on the basis they are the only clearly articulated rules on the issue, in spite of being minority decisions, obiter dicta, and from lower courts, in other jurisdictions, which have never been contradicted.
The rules help make a correct legal analysis of the issue at hand using the facts of the case. The rules section needs to be a legal summary of all the rules used in the analysis and is often written in a manner which paraphrases or otherwise analytically condenses information into applicable rules.
Application
The Application (or Analysis) section of an IRAC applies the rules developed in the rules section to the specific facts of the issue at hand. This section uses only the rules stated in the rules section of the IRAC and usually utilizes all the rules stated including exceptions as is required by the analysis. It is important in this section to apply the rules to the facts of the case and explain or argue why a particular rule applies or does not apply in the case presented. The application/analysis section is the most important section of an IRAC because it develops the answer to the issue at hand. It is useful to think like a lawyer, arguing the facts of the matter from both sides while sticking to the rules before coming to a decision.
Conclusion
... or simply making it a close call and identifying whether it is decided by the tribunal of fact or is a matter of law to be decided by the judge. The Conclusion section of an IRAC directly answers the question presented in the issue section of the IRAC. It is important for the methodology of the IRAC that the conclusion section of the IRAC not introduce any new rules or analysis. This section restates the issue and provides the final answer.
Facts
The facts of a case are central to every step in the IRAC. It is from the facts that the issues are identified. It is the facts that lead to the identification of the most appropriate rules, and the rules which lead to the most useful way of construing the facts. Analysis requires the interpretation of facts and rules. The conclusion is a decision based on the application of the rules to the facts for each issue.
Different employment types could be used with application of hypothetical facts.
extraordinary assumptions and hypothetical conditions are two closely related types of assumptions which are made as predicating conditions of an appraisal problem. Under the Uniform Standards of Professional Appraisal Practice (USPAP), they are two of the assignment conditions on which an appraisal assignment is predicated, the others being general assumptions, laws & regulations, supplemental standards, jurisdictional exceptions, and other conditions affecting scope of work. Making the distinction between the two is important when compiling or reporting appraisals in the United States or other jurisdictions where USPAP is considered the professional standard because USPAP has different specific disclosure requirements for each in an appraisal report and specifies different conditions under which each can be made.
Classic examples of hypothetical conditions include
Business entity
When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.
Your business structure determines the amount of regulatory paperwork you have to file, your personal liability for business decisions, how you are taxed on your business income. Sole proprietorships, partnerships, limited liability companies, and corporations are examples of popular business structures. It is important have an understanding of each before you make the decision to change your current structure. For a quick background, review these popular business types:
1. Introduction
Consumer protection law or consumer law is considered an area of law that regulates private law relationships between individual consumers and the businesses that sell those goods and services. Consumer protection covers a wide range of topics, including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions.
It's a way of preventing fraud and scams from service and sales contracts, bill collector regulation, pricing, utility turnoffs, consolidation, personal loans that may lead to bankruptcy.
Australia
In Australia, the corresponding agency is the Australian Competition and Consumer Commission or the individual State Consumer Affairs agencies. The Australian Securities and Investments Commission has responsibility for consumer protection regulation of financial services and products.
Germany
A minister of the federal cabinet is responsible for consumer rights and protection . In the current cabinet of Angela Merkel, this is Heiko Maas.
When issuing public warnings about products and services, the issuing authority has to take into account that this affects the supplier's constitutionally protected economic liberty, see Bundesverwaltungsgericht (Federal Administrative Court) Case 3 C 34.84, 71 BVerwGE 183).
India
In India, the Consumer Protection Act of 1986 is the law governing consumer protection. Under this law, Separate Consumer Dispute Redressal Fora have been set up throughout India in each and every district in which a consumer [complaint can be filed by both the consumer of a goods as well as of the services] can file his complaint on a simple paper with nominal court fees and his complaint will be decided by the Presiding Officer of the District Level. Appeal could be filed to the State Consumer Disputes Redressal Commissions and after that to the National Consumer Disputes Redressal Commission (NCDRC). The procedures in these tribunals are relatively less formal and more people friendly and they also take less time to decide upon a consumer dispute when compared to the years long time taken by the traditional Indian judiciary. In recent years, many effective judgement have been passed by some state and National Consumer Forums.
Brief overview of the content contained within the proposal
Cover page
The cover page contains two sections. The first section provides readers with information and instructions important to the RFP, including:
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