Regulatory Environment

Running head: KUDLER FINE FOODS REGULATORY ENVIRONMENT

Kudler Fine Foods Regulatory Environment

University of Phoenix

Kudler Fine Foods Regulatory Environment

Kudler Fine Foods is going through a shrinking and expanding process in the few months and will be temporarily closing some departments while a new catering service is being created. While some businesses may have personnel issues in dramatic expansions of business, Kudler Fine Foods has a path to follow that will allow all employees to stay employed and learn new aspects of the grocery business. With the expansion of Kudler Fine Foods, new resources will be needed. This paper illuminates the way to this goal and be in compliance with existing regulations.

Kudler Fine Foods Obligations to the Employees

The decision to use local growers of organic produce and start a catering service will result in the shutting down of some departments during a three-month refurbishing process. Because Kudler Fine Foods operates in the state of California, where "employment is 'at will', this means that the employer can fire the employee for no reason or any reason," (Greenburg, 2007). The only two exceptions are discrimination and breach of contract. Kudler Fine Foods' Employee Handbook states, "The only policy we will never change or cancel is our employment-at-will policy." The employment-at-will policy allows the employee or KFF to terminate employment at any time for any reason," (Apollo, 2007). Kudler Fine Foods has no obligations under "breach of contract", because no contracted employees exist in the company, so long as no terminations during the refurbishing are based on discrimination.

The question of obligations to affected employees can be answered by looking at laws governing unemployment insurance. Since 1935, "federal law has authorized joint federal-state efforts [to protect] employees after their employment end," (Mallor, 2003, p. 1169). The Kudler Fine Foods Employee Handbook expressly states that all employees are eligible for unemployment insurance (Apollo, 2007). Because of this, the affected employees may be entitled to unemployment insurance payments if that meet certain requirements set forth by the state, including being unemployed through no fault of their own, being physically able to work and actively seeking work, (State of California, 2007).

Kudler Fine Foods will need to keep in mind that the positions that are being laid off will need to be filled in three months, the company will have to be careful how they layoff the employees, so that the employees do not become disgruntled and look for other jobs, which would increase Kudler Fine Foods' need to train new employees. In addition, the displaced employees may seek unemployment insurance, causing Kudler Fine Foods to incur a financial loss. Management at Kudler Fine Foods should explore alternatives to temporary layoffs, such as temporary reassignments for affected employees until the refurbishment is completed. This could save Kudler Fine Foods money in the long run, and maintain a sense of goodwill among all Kudler Fine Foods employees.

Kudler Fine Foods Obligations to Organic Growers

Contracts present both parties involved with the ability to call on the law in the event of a dispute rather than relying on the good faith of the other parties involved. It makes perfect business sense that local organic growers would seek to enter into an agreement so they can forecast and count on Kudler Fine Foods' revenue. The contractual promise between these two retailers would traditionally involve an offer and an acceptance of that offer with a capacity and the legality of the contract in consideration. At the moment Kudler Fine Foods can satisfy its organic produce demands, closely manage inventory, and is in a position to endure the least amount of profit loss due to perishables going bad. In the event that Kudler Fine Foods was to enter into a contract as a non-merchant the local organic produce growers would want Kudler Fine Foods to define a quantity to be purchased. Committing to a quantity under contract and law would make Kudler Fine Foods more vulnerable to fluctuating produce demands and is setting the business up for losses due to expiring perishables.

Kudler Fine Foods Organic Produce Liabilities

Organic food is grown without the use of pesticides and artificial fertilizers. It is processed without the use of food additives, which is proven to be a healthy solution for one's body and digestive system. Since organic food is not grown with the hormones and pesticides of other foods, the shelf life is shorter than other foods due to the lack of artificial ingredients in the product. Kudler Fine Foods must focus on the quality of the produce while on display. Kudler Fine Foods should consider ordering smaller amounts on a more frequent basis to ensure freshness until the time of the sale. In the United States, a company needs to obtain an organic certification to be able to classify what they are selling as organic. Kudler Fine Foods will have to make sure the distributor is following these guidelines.

Kudler Fine Foods Employment Law Compliance

Kudler Fine Foods needs to consider whether it will hire employees to work directly in its service

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