BUS 311 Business Law I: The starting of Acme Fireworks Company

Name: BUS 311 Business Law I: The starting of Acme Fireworks Company
Brand: Simon Fraser University
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Author: Owen Collins

An assignment analyzing the legal aspects of starting a business.

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Running head: ACME FIREWORKS COMPANY 1
The starting of Acme Fireworks Company
Debra Daller
BUS 311 Business Law I
Instructor: Michael Huang
October 6, 2014
In the context of expanding the Acme Fireworks Company, analyze the various legal liabilities
associated with the manufacturing, distribution, and sale of fireworks. Discuss the potential risks
involved for the company, including but not limited to, intentional torts, negligence, and strict
liability. How can the company ensure compliance with legal requirements to minimize risk?
Additionally, consider the environmental and ethical responsibilities that the company must
address as part of its expansion. Based on your analysis, recommend the most suitable business
structure for Acme Fireworks Company and explain why.
Word Count Requirement: 800-1,000 words

ACME FIREWORKS COMPANY 2
Acme Fireworks Company is planning to expand and needs some details to accomplish
this goal. The owner of any business would need to know and understand the responsibility of
what they are manufacturing. The liability would be for the injury that a person would incur due
to the fireworks that they sell. It would go so far as from the manufacturer of the product the
distributor and the wholesaler and finally the retailer that sold the defective fireworks to the
customer. There are mainly four different kinds of legal liability theories that can consider. The
intentional tort, and in this particular type of case it is, usually, a typical battery kind. The next
would be ordinary negligence, then strict liability negligence or breach of contract. The
consequences of suing a person or business with one or more of the legal arguments would be
over the other three of the cases available and the damages that can recover. Certain of the
defenses would be available to the defendant under the specific legal principles when they are
not available under the others. The laws of the liability that determines what the liability is from
the manufacturers. The distributors and the wholesalers, and the retailers to make sure that the
physical damage that can be suffered by the individuals from their products they know how to
use the products. The businesses are required to have a how to use this product labeled
somewhere on the product and the name of can be dangerous if used improperly on the label
also. If the problem would exist with the product. That is found in the product and can cause
harm to a person or the property. Then some or all the parties named above would be at fault,
and the company will have an economic loss that they may have to recover.
There are several different kinds of liabilities would be with the company would need to
be careful. There is the intentional tort which is the kind of battery that the law would consider to
be pretty much self-explanatory intentionally causing injury or to cause someone to harm
themselves or others from the product. With this type of tort with the manufacturer and or the

ACME FIREWORKS COMPANY 3
supplier would be at fault for the injury that a person may have incurred while the person would
be using the product.
There is also negligence that could get a business into trouble with the law involving the
manufacturing company or even the suppliers. They would by intentionally placing a dangerous
product into the stream of the products that the customers would be able to get hurt. Again this
would be a reasonable case for the law to consider that the manufacturer or even the supplier
would be at fault if the consumer or a person would get hurt from using the product. The
negligence cases would be if the supplier and manufacturer are not careful with the product they
could be facing even unintentional injuries from the injuries that their products have caused the
general product. In this liability, a passerby that is injured by the defective fireworks that the one
person bought May also be able to sue the manufacturer and or supplier because he also got hurt
is the products.
As with strict liability would be placing of the liability would in most cases go to the
manufacturer. In the case of the plaintiff must show that the item was defective. The strict
liability will then cause damage by the manufacturer or a supplier, and no other place could have
had the opportunity to handle the item even much less to tamper with the article to make it
dangerous for anyone. Just the same as with the plaintiff the manufacturer must prove that the
customer did or cause the item to become very unstable or dangerous by whatever means that the
consumer was doing to the product and the manufacturer had ample warning signs on the
product to tell the consumer not to cause the person any danger in order to cause injury for the
person or persons. Most times it is the manufacturer for the defects for the strict liability to attach
in the cases involving the manufacturing of the defective items ordinary negligence could also be
applied to the cases that involves design defects or defective warning. There are three common

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University

Simon Fraser University

Subject

Business Law

BUS 311 Business Law I: The starting of Acme Fireworks Company

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