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Week 6

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Autor:  anton  25 March 2011
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Discussion A

As a result of the decisions use local growers of organic produce and start a catering service, Kudler has decided to shut down some departments (e.g., deli, confectionary, on-site prepared meals) for 3 months for refurbishing. This will result in some employees not being needed. What obligations does Kudler have to its employees? Can Kudler legally shut down these departments?


1. Will these layoffs be viewed as an infringement on Title VII discrimination laws?

2. Does Kudler have Union Contracts, and if so, how will this affect the relationship?

3. Does Kudler owe an explanation for downsizing these departments and are their changes justified?

4. How will this affect the public perception of Kudler’s customers, and will it have a negative impact on sales?

5. Are these layoff’s affecting other contractual agreements with vendors or any other stakeholder to the organization?

“Employee discrimination might be defined as employee behavior that penalized certain individuals because of personal traits that they cannot control and that bear no relation to job effectiveness.” (Mallor, p. 1172) This is a line that is crossed occasionally, whether it is justified or not. Kudler must ensure that any organizational changes do not affect the legal rights of its employees, whether it is a Union contract, or other binding agreement that may affect outcomes from the change. Kudler can make any organizational changes necessary, as long as they abide by federal and state regulations, and do not break contractual agreements; otherwise they can be penalized.

Discussion B

The local organic produce growers want contracts with Kudler so they can have some certainty regarding where their produce is sold. Should Kudler enter into contracts with these growers?


1. Does Kudler want binding agreements with the produce growers, and what should the terms be?

2. Will contracting with grower cause resentment between the two parties?

3. Are these contracts going to be flexible for negotiations if crops do not come in as expected?

4. What produce growers need contractual obligations?

5. Will any contract meet federal and state law requirements?

All of the questions concerning contractual agreements are basic rhythms that Kudler must engage in to effectively manage vendor relationships. “Contracts give us the ability to enter into agreements with others with confidence that we may call on the law-not merely the good faith of the other party-to make sure that those agreements will be honored.” (Mallor, p. 222)

Discussion C

Organic produce does not have preservatives. What product liability implications does this have for Kudler? What regulatory implications does this have for Kudler?


1. Have the products that Kudler is currently using been tested by the USDA?

2. Is there a guarantee return policy on the products used?

3. Will Kudler be responsible for defective produce or is it the local growers responsibility?

4. What is the credibility of the developers of the product?

5. How does Kudler plan to avoid future implications of product liability?

Kudler does have a responsibility to the consumers for the products being sold in the stores. If the products do not meet the USDA qualifications for organic produce and Kudler displays them as such, KFF will be held liable for misrepresentation. The certified USDA label should be displayed by the local farmer on each piece of produce to be sold. This allows for the local growers to be held liable for any complaints by the consumers, not Kudler. The USDA and the National Organic Program (NOP) suggests that retailers selling organic products (a) keep proof of organic certification for direct suppliers, (b) contract with private label suppliers, to confirm manufacturers and the products meet the NOP requirements, and (c) keep pest-management or sanitation records from the stores and farmers (Food Marketing Institute, 2002, p.6). Kudler is also responsible for identifying the manner is which each organic product is handled or processed prior to reaching the store along with the preparation and display steps taking while in stores prior to purchasing.

Regulatory Implications

Organic produce does not have preservatives, therefore, Kudler and the local farmers will need to address the ways in which the produce will be handled, packaged, delivered, stored, sold, and displayed. The USDA and NOP have a list of guidelines for all organic products sold in the U.S., and even the smallest of organic farmers must comply with these regulations. A certification is not mandatory for small business owners selling organic produce but they are required to follow the Organic Food Production Act of 1990 (Food Marketing Institute, 2002, p1). For Kudler to clearly comprehend each regulation, management should research the “Federal Register” which list each expectation required. To avoid any future implications of product liability, as mentioned prior in the paper, Kudler should take implement additional measures for non-regulatory reasons (Food Marketing Institute, 2002, p.1)


Food Marketing Institute (2002/October) USDA National Organic Program Requirements for Food Retailers and Distribution Centers. Retrieved May 31, 2008, from

Mallor, Jane P., Barnes, James A., Bowers, Thomas L., Langvardt, Arlen W., (2003) Business Law: The Ethical, Global and E-Commerce Environment. New York: The McGraw-Hill Companies.

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