The Challenges Of Doing Business Overseas

Regulatory Environmental Study

Companies must follow all regulations in their legal environment including Employment Discrimination Laws and contracts. Kudler Fine Foods, for example, needs to fully understand how to implement many of its new business decisions within the constraints of its legal environment. This paper discusses many concerns that will be raised in each new decision ranging from Kudler’s obligations to employees that will be affected by layoffs, contracts with local organic growers, product liability implications Kudler has for the organic produce that does not contain preservatives, and their employment law considerations.

Kudler’s Obligations to Employees Affected by Layoffs

Kudler Fine Foods has recently decided to implement a catering service and use local farmers to supply its organic produce. These decisions have implications for several Kudler departments (e.g. deli, confectionary, on-site prepared meals), as they will cease operations for a three-month period in order to be revamped. Kathy Kudler, founder, must carefully consider all of Kudler’s obligations, especially legal to its staff before layoffs ensue. Anne Shousha serves as Kudler’s legal counsel and “Kathy is the only person in the company that talks with Anne”.

Employers are required to adhere to federal and state laws that apply to a wide array of employer-employee scenarios. The specific focus here however is if Kudler is legally permitted to close down the aforementioned departments, which would entail job losses. The following quote is from Kudler’s employee handbook in the section titled, “Introductory Statement…KFF has the right to add new policies, change policies, or cancel policies at any time. The only policy we will never change or cancel is our employment-at-will policy. The employment-at-will policy allows you or KFF to terminate your employment at any time for any reason". While any reason does not mean that the company policy is above the law, since they are not dealing with issues related to workers’ compensation, the Family and Medical Leave Act, Title VII, the Americans with Disabilities Act, sexual harassment, or race, color, national origin, religious, sex or age discrimination, Kudler is not breaking the law. In addition, Kudler does not have a union, which may have required a different approach.

All of the released workers should be eligible for unemployment compensation because none of the proceeding conditions apply. According to Mallor, Barnes, Bowers and Langvardt , “generally, those who voluntarily quit work without good cause, are fired for bad conduct, fail to actively seek suitable new work, or refuse such work are ineligible for benefits." A close look at Kudler’s intranet, especially the human resources’ policies and procedures section, reveals a considerable level of respect and value for employees. This is reflected in the employee recognition program, benefits package and other company policies. Kudler attempts to “fill key leadership positions with people who are already familiar with store operations." Companies can save a lot of time and money on recruitment and training costs by rehiring former employees. Based on this knowledge, it would be very surprising if Kudler did not rehire a significant percentage of the staff, once the retailored departments are ready to do business.

Local Organic Produce Grower Contracts

Organic produce growers in the local area desire contracts with Kudler Fine

Foods. The reasons for this desire are important, as Kudler must decide whether or not to enter into contracts with these local growers. Contracts are entered in order to enforce promises. These legal instruments set the groundwork for relations between two parties. In business, these agreements are essential as they delineate the responsibilities of all interested parties. “Contracts facilitate the planning that is necessary in a modern, industrialized society." In other words, businesses require assurances from business partners before entering into business endeavors.

The organic produce growing industry is a costly proposition for the average grower. Organic growers buy the seeds for their crops from larger corporations that have patented genetically engineered seeds for various crops. These contracts are very strict and frequently force growers to buy seed every year they plant crops. It is important for growers to use the engineered seeds as they represent the best chance for these small businessmen to ensure they have viable crops to sell. The monetary penalties incurred from breaching seed contracts are enough to put the average grower out of business.

The profit margins for the average organic produce grower is small, therefore they must enter into contracts themselves in order to guarantee some sort of gain for their efforts. Kudler Fine Foods needs the local organic grower produce to facilitate offering the freshest products in their stores. The new parts of the business that are being discussed, such as the in-store cooking parties and the catering enterprise, will need reliable suppliers that can get produce to Kudler with little or no notice. The organic produce growers want to know they will have a guaranteed buyer and Kudler needs organic produce growers for their business. Therefore, Kudler should enter into contracts with the local growers.

Organic Produce Liability

Kudler must adhere to organic food regulatory labeling and handling guidelines or face stiff penalties.

Does organic produce have less food poisoning liability risk then traditionally farmed produce? “Organic