In two to three paragraphs provide the following information

In two to three paragraphs, provide the following information about A FOOD TRUCK BUSINESS (SOLE PROPRIETORSHIP)

Based on the type of product your business will offer, discuss potential product liability issues and how your company can avoid these potential risks. If your business only provides a service, pick a product your business will purchase and use it to answer this part.

-Explain the applicability of the UCC to your transactions and your plans to handle sales contracts and warranties. If your business provides a service, explain why the UCC will not apply.

-What is the difference between FOB Shipment and FOB Destination? Explain the advantages and disadvantages of each. Identify shipping term(s) you plan to use for your business and explain the selection.

Solution

Food truck as a business

Let’s discuss a food truck, where the truck is selling a fresh made omelet sandwiches.

Before starting any food truck, you need to have a truck modified in such a way, that it is able to manage the production and sells of the item. You need to have a kitchen installed in a truck to make fresh sandwiches and a counter place to deal with the customers. Food truck is a close space to work with so you also need to have less staff probably one or two other than you as a counter handling person. You cannot have a chance of getting help from many people as there will be no space in the truck to manage.

Apart from the people working, there is also an task to store your item in the truck, since we are dealing with the less space, you need to have only that items in truck that you can sell in one day, no inventory can be stored, as it may go rotten or there will be no space itself to keep it in the truck. To avoid such problems, you have to buy material on everyday basis, make sandwiches in the truck itself, it will be easier to make sandwiches as it won’t require a lot of kitchen units, like oven, micro only a hot plate can be kept to prepare omelet and compact oven to keep the stuff warm.

Applicability of UCC, the rules and regulation entitled with UCC will apply in sales of the food item selling through the food truck. Under UCC article 2, you as a food truck owner have to make sure that the product sold is of good quality, you have a good faith with the customers. All legalization, regulation related to the truck business is taken care of. Since it is going to happen on day to day basis, sales plan is to finish the entire product in a day so that no item is left for the storage.

FOB shipment - it is international trade terms which says that where the title of goods are transferred to the buyer from the seller when the goods are placed in the delivery vehicle whereas FOB destination is the title of goods transfers from the seller to the buyer when the goods are delivered to the buyer\'s destination.