Legal Focus
Kudler Fine Foods is a specialty food store created by Kathy Kudler (Apollo Group Inc., 2013). After reviewing Kudler Fine Foods’ information, it has been determined that their legal procedures are severely lacking in preparation for legal action. The thought process behind the current legal plan is to be reactive which only helps after an issue has occurred. The information systems team is formulating a plan to update policies and procedures as well as best practices to be both proactive and reactive when it comes to possible litigation against Kudler Fine Foods.
Current Legal Plan As it stands, Kathy Kudler is the only person who is to talk to Kudler Fine Foods’ legal counsel, Anne Shousha. Shousha’s view on going to court is that it is like throwing dice, therefore she recommends settlements instead (Apollo Group Inc., 2013). There is a chain of events to follow within the stores for regular incidents that occur such as slips and falls. This chain begins with employees notifying store managers of the incident. At that point, the store manager determines whether or not Kathy Kudler should be notified of the event. Following Kathy’s notification, she determines whether or not the store’s legal counsel should be notified (Apollo Group Inc., 2013). Based on the current system, the legal counsel would then recommend to Kathy that she settles with the customer rather than go to court. This approach is a very poor way of protecting a business. The goal for Kudler Fine Foods should be to avoid legal troubles. Kathy Kudler’s approach has many downfalls because the company will not be prepared for anything that could happen. From a legal view point, this makes them a very easy target for lawsuits. When there is an incident, Kudler Fine Foods is using documents created by other companies (Apollo Group Inc., 2013). These are like cookie cutters because they are very rigid and do not leave room for information that pertains to Kudler. This makes a good majority of the documents not as useful as what custom forms could be for the business.
Product Liability Product liability is the “liability of any or all parties along the chain of manufacture of any product for damage caused by that product. This includes the manufacturer of component parts, an assembling manufacturer, the wholesaler, and the retail store owner” ("Products Liability", n.d.). For example, in Brockett v. Harrell Bros., Inc. the plaintiff purchased ham from the grocery store (Leagle, Inc., 2014). She prepared it that evening and noticed some black spots which she assumed to be cloves (Leagle, Inc., 2014). However, when she ate a sandwich a couple of days later, she ended up with a broken tooth because there was lead pellets embedded in it (Leagle, Inc., 2014). The product purchased was damaged and falls under product liability.
Currently, Kudler Fine Foods, as a company, does not seem to be aware of any current product liability. This makes them a target for not only themselves, but also for the retailers from which they purchase items. Best practices for product liability would include adopting greater safety practices which could help prevent all of the potential litigation that could occur. Adopting these changes would require Kudler Fine Foods to change the way they look at the legal aspect of business. In order to achieve the best practice model, Kudler has to stay within the lines of the law pertaining to product liability. This means that the company must practice food safety within the different branches. Every item shipped to the company’s three branches must have a quality control check done. This includes checking items for damage, spoilage, expiration dates, and other forms of quality based on the item. Customers do not want to purchase items that are beyond their shelf life or damaged beyond repair, especially in a store aimed to have high quality merchandise. Failing to perform quality checks on these items ends up in a loss for the store as the damaged items fail to sell and go to waste.
Proposed Inventory Management Changes The ideal inventory system would enable Kudler Fine Foods to add and remove items from the inventory both quickly and efficiently so that quality of the merchandise can be maintained. Processes that can be improved to help prevent litigation for product liability cases include adding items to the database with entry date, expiration date, and an ideal sell by date. If an item comes close to its expiration date or ideal sell by date, the merchandise can be discounted in the system to allow for a sale rather than wasted product. Customers will be satisfied as they will have the opportunity to purchase the freshest items that Kudler Fine Foods has to offer which will tie into the strategic marketing goals. Satisfied customers generally tend to return for more items, especially if the products continue to be of excellent quality. They are also more likely to sign up for loyalty programs and frequent shopper programs. Practicing good inventory record keeping is one of the most important steps that Kudler can take to increase their product safety. Each of the three company branches should store food in an acceptable and clean environment. This continues food safety procedures beyond inventory control. The shelving environment also avoids product waste and accidental sales of improperly stored, spoiled items that were wasted due to poor storage conditions. Maintaining the store’s environment also impacts store cleanliness, product safety, and customer satisfaction. A way to maintain the store’s environment includes keeping the temperature of the facilities at an optimum temperature and also keeping a clean and disinfected store in the front and behind the scenes.
Conclusion
Putting the focus and emphasis on the legal aspects of running a safe, clean, and desirable store will tie into both the strategic marketing objectives and the operations focus of the store. Customers not only expect exceptional service each and every time they shop but they also expect an environment that ensures that they have the freshest, safest food that Kudler has to offer. Keeping a clean store by being alert for any spills, tripping hazards, and other unsafe items will help Kudler Fine Foods be proactive when working to prevent lawsuits and major litigation. The information systems team recommends not only working on product quality and store cleanliness, but also working to update the current forms to be ready for what Kudler might face rather than another company. References
Apollo Group Inc.. (2013). Virtual organizations portal. Retrieved from Apollo Group Inc., BSA 502 website.
Leagle, Inc.. (2014). Brockett v. Harrell Bros., Inc.. Retrieved from http://www.leagle.com/decision/19651040143SE2d897_11026.xml/BROCKETT%20v.%20HARRELL%20BROS.,%20INC.
Products liability. (n.d.). Retrieved from http://www.law.cornell.edu/wex/products_liability