Day 139 - 21 Jun 95 - Page 47


     
     1
     2   MR. JUSTICE BELL:  That may not matter.
     3        A.  The last paragraph just mentions that -- and it was an
     4        isolated incident -- and the fact that we had been aware of
     5        it since the licensee informed us of it, sure.
     6
     7   MS. STEEL:  Can I just ask:  you mentioned about sending someone
     8        to check the records once you became aware of this?
     9        A.  That is correct.
    10
    11   Q.   But you had not checked his records prior to that, prior to
    12        the fact that this had been discovered by the state
    13        authorities?
    14        A.  Wait a minute.  I am sorry, you are confusing me.
    15
    16   MR. JUSTICE BELL:  What is being put to you is that McDonald's
    17        had not checked McCale managements records, or the records
    18        of their stores, McDonald's stores, before the citation
    19        came to McDonald's the attention?
    20        A.  My Lord, I think I had already mentioned ----
    21
    22   MR. RAMPTON:  My Lord, we heard a good deal about this morning,
    23        whether it was Ms. Steel or Mr. Morris; they were both in
    24        this court.  He has already answered a whole string of
    25        questions about this this morning.  He said, in effect,
    26        that they leave it to the local authorities.  If the local
    27        authorities do not turn anything up, they are so thorough
    28        that one can be culpable and everything is all right.
    29
    30   MR. JUSTICE BELL:  I must say that that is not the way
    31        I understood the evidence.  The way I understood it is that
    32        field representatives did checks?
    33        A.  Yes.
    34
    35   Q.   Of course they might not turn things up, but you knew also
    36        that local State and Federal Authorities were checking and
    37        you reckon between the four of you, someone would pick
    38        something up.  That is what I understood you to say?
    39        A.  Yes, my Lord.
    40
    41   MR. RAMPTON:  I accept that is a fair account.
    42        A.  That is correct, my Lord.
    43
    44   MS. STEEL:  How often do company representatives check on those
    45        types of records on franchisees?
    46        A.  In our field, consultants visit stores periodically,
    47        every couple of months, every 3 months.  They would be in
    48        the stores and would do various spot checks.  That is how
    49        often.
    50 
    51   Q.   When you say "spot checks", do they go through the books 
    52        systemically or do they turn up a couple of pages and check 
    53        whether they look as though they are right?
    54        A.  They would turn over a few pages, the same way,
    55        frankly, the investigators do from the State or Federal or
    56        Local Authority, and if they see something that strikes
    57        them, then they would go deeper, but if they do not see
    58        something that strikes them, it would be a spot check.  The
    59        presumption is, because our operators generally do a very,
    60        very good job in this area, that it is not a major problem

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