Day 139 - 21 Jun 95 - Page 08


     
     1        idea what is in the licence agreement.  That is not my
     2        specialised area.  I do not deal with compliance.
     3
     4   Q.   This is the McDonald's Corporation licence agreement with,
     5        effectively, a whole country?
     6        A.  That is fine, sir.  But I think I have already
     7        mentioned that if I have looked at a licence agreement in
     8        my 21 years six times, that would be a lot.
     9
    10   Q.   If we also note, in that section, over the page:
    11
    12        "Licensee agrees to promptly adopt and use exclusively the
    13        formulas, methods, and policies contained in the business
    14        manuals, now and as they may be modified by Licensor" --
    15        that is McDonald's Corporation -- "from time to time."
    16
    17        Does that ring true with you, in your experience?
    18        A.  Sir, I am not trying to be difficult, but you are
    19        asking me things that I cannot answer.  I do not even know
    20        what the interpretation of business manuals are.  You are
    21        asking me to interpret a legal document and give you a
    22        response, and I cannot do that.
    23
    24   Q.   I am not asking you to interpret the document.  I am asking
    25        you whether it is a condition of being a McDonald's
    26        whatever -- franchise, joint venture partner, you name it,
    27        whatever it is, a McDonald's store -- that they have to
    28        "adopt and use exclusively the formulas, methods and
    29        policies contained in the business manuals"?
    30
    31   MR. JUSTICE BELL:  Just pause, because I can read that for
    32        myself.  You have to put it in a way which will advance
    33        things.  I can see that term in relation to Pantry
    34        Franchise in Ireland.  If what you are asking is, does
    35        wording to that effect appear in franchise contracts around
    36        the world, put it to Mr. Stein and he can tell us whether
    37        he can answer or not.  Is that what you are getting at?
    38
    39   MR. MORRIS:  Yes.  I mean, whether the wording appears, he may
    40        not know.  (To the witness)  But the point is, when you jet
    41        around the world to trouble spots, as you have indicated,
    42        presumably, you have to know whether the licensee can say:
    43        "None of your business"; you have to know whether,
    44        basically, McDonald's Corporation has an interest in what
    45        is going on there?
    46        A.  I can tell you what my understanding is, and the point
    47        that you raise.  He can tell me: "Thank you very much for
    48        your advice, Mr. Stein, but I will make my decision and
    49        proceed."
    50 
    51   Q.   But you do not know he can say that, because you have not 
    52        read the ----- 
    53        A.  That has been the custom, that has been the practice,
    54        that is the way I have always conducted myself, sir.
    55
    56   Q.   I put to you, Mr. Stein, that that is absolute rubbish.
    57        A.  Are you asking a question or are you making a
    58        statement?
    59
    60   Q.   I am putting it to you, giving you an opportunity to

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