Day 140 - 22 Jun 95 - Page 35


     
     1
     2   Q.   You talked yesterday about McCale management and going
     3        through their records to see whether minors were ---
     4        A.  That is correct.
     5
     6   Q.   -- working too many hours.  How would you be able to make
     7        those checks ---
     8        A.  OK.
     9
    10   Q.   -- if a manager or owner/operator was not keeping payroll
    11        records?
    12        A.  They do keep payroll records, and the reason that --
    13        everybody keeps payroll records, if that is your question.
    14        They do it in different forms:  computers, manual.  They
    15        all have to keep payroll records.  They all have to pay
    16        their employees.
    17
    18   Q.   But you are saying you do not have a right to look at any
    19        of those records to check the hours that people have been
    20        working?
    21        A.  Legally speaking, if the operators rejected our
    22        request, my understanding, from practice, is that they
    23        would be in their right.  They do not have to submit it to
    24        us.  As a matter of practice, except in rare instances,
    25        they will submit it to us upon request.
    26
    27   Q.   Do they not have to show to you that they are conforming
    28        with laws, the relevant laws?
    29        A.  They have to obey the laws, but they do not have to
    30        provide documentation to do that.  They are obligated to
    31        comply with our laws.
    32
    33   MR. MORRIS:  It is a condition of the franchisee agreement you
    34        have in America that the franchisee obeys the laws; is that
    35        correct?
    36        A.  That is correct.
    37
    38   Q.   It is also a condition that "McDonald's shall have the
    39        right to inspect and/or audit franchisees' accounts, books,
    40        records and tax returns at all reasonable times to ensure
    41        the franchisees are complying with the terms of the
    42        franchise" -----
    43
    44   MR. JUSTICE BELL:  Just pause a moment.  I think he should see
    45        the document.  I am not saying you are not reading it
    46        accurately, but it is much easier for a witness to follow
    47        if it goes beyond three or four words.  So if you look in
    48        yellow X again, tab 4, behind your first statement.
    49        A.  This is X?
    50 
    51   Q.   Yes.  Look in divider 4, please. 
    52        A.  OK. 
    53
    54   MR. MORRIS:  It is page 5 of the document.
    55
    56   MR. JUSTICE BELL:  Just let us find it.  After the Pantry
    57        Franchise Ireland document, there is another one.
    58        A.  With the letter B at the top?
    59
    60   MR. JUSTICE BELL:   B in the top right-hand corner.  Mr. Morris

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