Essential elements of an enforceable contract.

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 a price per display was agreed upon. It was discussed that most of the cost
for a fireworks display is for skilled labor, insurance, and the actual service of setting off
the fireworks. No other details were discussed. The owner is anticipating that new
employees will need to be hired, but he is worried that if the large orders for fireworks
displays 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 he does not know what
entity to form or how to form it. The owner has asked you to do the following: Determine
if the contracts with the businesses will be governed by common law or the Uniform
Commercial Code (UCC), and explain why. Analyze whether the owner formed a contract
with the businesses, and apply the five essential elements of an enforceable contract.
Explain the potential personal liability to Acme Fireworks if a spectator is injured by a
stray firework from a fireworks display. Discuss the different employment types and
relationships relevant to agency law, and analyze the advantages and disadvantages of
each type specific to Acme Fireworks. Explain why Acme Fireworks should not operate
as a sole proprietorship. Recommend a new business entity, and provide rationale to
support your recommendation. For each task, be sure to analyze the relevant law, apply
the facts to the law, and make a conclusion.