Business laws are written to ensure fairness between companies and consumers. However, laws can be potent weapons in the hands of those who adopt unfair or deceptive practices for monetary gain. Companies must arm themselves with legal teams and contracts for protection from such adversaries. One accident or injury can literally close a company's doors forever if sound legal strategies and precautions are not in place. Kudler Fine Foods will be vulnerable to lawsuits until they improve their legal counsel, liability precautions, incident reporting, contracts, nondisclosure agreements, software licensing compliance, and occupational safety.
Current PracticesKudler Fine Foods uses Anne Shousha as legal counsel. Anne is Kathy Kudler's sister-in-law and is a successful tax attorney. Kathy uses this family connection to keep legal expenses to a minimum (University of Phoenix, 2003).
Kathy is the only person in the company that consults with Anne. Store managers must report all "slip and fall" accidents to Kathy immediately but reporting other types of incidents such as negligence is discretionary.
Few KFF customer incidents have ever ended in litigation because Anne advises Kathy to settle each case out of court, reasoning that going to trial is always a gamble (University of Phoenix, 2003).
KFF uses very few custom forms, preferring instead to use contracts and order forms supplied by the other parties. For example, the lessors supply the lease contracts on the stores. Kathy and her assistant modify forms generated by off-the-shelf software when necessary (University of Phoenix, 2003).
RecommendationsExpand Legal Counsel ExpertiseAnne Shousha specializes in tax law; navigating through the minefields of audits, fines, and liens. KFF should retain legal counsel experienced in litigation in cases where plaintiffs seek monetary damages from the company, e.g. personal injury claims. Litigation is the legal proceeding in which a lawsuit is brought before a court. Anne's lack...