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Legal Focus - Kudler Fine Foods Should Incorporate a Legal Department

Essay by   •  July 15, 2011  •  Essay  •  607 Words (3 Pages)  •  2,114 Views

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As for legal advice, Kathy Kudler uses her sister-on-law, Anne Shush, as a legal counsel. Anne is a tax attorney, who works for a major accounting law firm in San Diego. Anne has an agreement where legal advice over the phone or during family gatherings are free and one hundred dollars per hour during formal meetings. This arrangement keeps the legal expenses very minimal. Kathy Kudler has requested that all store managers report all "slip and fall" incidents immediately to her and other at their discretion. At that time, Kathy will then decide if she needs legal advice from her sister-in-law. There have been a few incidents that have gone to litigation. Litigate is to carry on a legal contest by judicial process. (Merriam-Webster Inc, 2011) Anne has always suggested that Kathy ages to a settlement instead of going to court.

Kudler Fine Foods should incorporate a legal department to represent their stores. There are many laws that are written to protect a business from consumer and vice versa. Kudler Fine Foods is at risk because of misrepresentation. If a serious injury were to occur, lawsuits and the possible closure of Kudlers' doors can happen. Because Anne specializes in tax law, she can't give Kathy law expertise advice on consumer who wishes to collect money if they are hurt in-store.

Product liability refers to the liability of any or all parties doing the chain of manufacture of any products for damage caused by the product. (UsLegal Inc, 2011) In order to file a liability claim, the product must be proven defective. By adopting safe food practices, Kudler Fine Foods can steer away from product liability cases. Other legal actions that Kudler can face are defamation, customer injuries and human resource issues.

Organic products are popular because they promote healthy foods. They have to make sure that the products that they are selling are indeed, organic. Kudler itself and its farmers have to be certified and in compliance with all regulations and standards. Kudler also has to abide by these same rules because they are sellers as well. A sample case of product liability concerned an organic pastures E. coli outbreak. In September 2006, in the states of Washington and California, six children developed food poisoning systems from E. coli. A subsequent health investigation revealed that the culprit of this E. Coli outbreak was raw milk produces by California's largest raw milk diary, Organic Pastures. (AWKO Law, 2011) After an intensive investigation, California Department of Food and Agriculture recalled all products from Organic Pastures and filed a lawsuit in court preventing them from shipping any products until the breakout was contained. Two of the six children became seriously ill with permanent kidney impairment. Their parents sued the company claiming negligence and product liability.

One solution to Kudlers' legal problems would be to install LexisNexis Compliance Manager



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