Strategic considerations involved in each choice of entity


Mercer Mechanics offers a one-day sale on battery installation. During the course of the day the mechanics at Mercers install over 200 batteries in various vehicles. Unfortunately, one of the installed batteries had a manufacturer's defect and exploded within the vehicle which was being driven by Driver. Fortunately, Driver only sustained minor injuries, but his vehicle was destroyed.

(1) Is Mercer Mechanics' installation of the battery in Driver's automobile subject to Article 2 of the UCC? Why or why not?

(2) Describe the various business entities that Mercer Mechanics could have formed to conduct business. Discuss the strategic considerations involved in each choice of entity. What are the advantages and disadvantages of each?

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Accounting Basics: Strategic considerations involved in each choice of entity
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