BUS 311 – W5 final

BUS 311 – W5 final

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 Limited Liability Company (LLC). With this transition, there would also be an increase in employees or independent contractors in order to manufacture more products 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.
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. Once the business becomes a Limited Liability Company, the owner is called a member (IRS.gov) and has a combination of the best features from both a partnership structure and a corporation structure. Changing to a LLC the business holds the liability where the owners do not. Making this change in business structure will not only protect the owner from personal liability when it comes to consumers but also from anything else business wise. Hiring employees and expanding in size can create higher risks, and having protection from personal lawsuits is in the owners’ best interest.
If any consumers have injuries caused by the product it will all depend in which way the injury occurred. Any manufacturer defect would then mean the company is liable, but if the injury were from the misuse of the user then the company would not be liable for injuries. “The law states that everyone has the duty to act with reasonable care to avoid…