Day 139 - 21 Jun 95 - Page 12


     
     1        A.  Yes.  There are franchises there, but there are also 10
     2        company stores.
     3
     4   Q.   So how many McDonald's stores as a whole in Puerto Rico?
     5        A.  I believe around 60.
     6
     7   Q.   And you have had no labour relations problems there since
     8        then?
     9        A.  None whatsoever.
    10
    11   Q.   So, that was just an example.  Yesterday, you said that the
    12        effective contracts you have between you and your staff is
    13        not just the Handbook; it is also the oral relationship,
    14        promises, agreements, expectations, whatever.  So that
    15        would apply also, would it not, to the McDonald's family?
    16        You have just said that you have a culture which permeates
    17        throughout the McDonald's system.  So you would accept that
    18        that culture provides an environment within which there are
    19        obligations, effectively, whether they are always written
    20        down or not?
    21        A.  I think that the franchising area is very specific
    22        according to the licence agreement.  My testimony had to do
    23        with the employment area and how we deal with employment.
    24
    25   Q.   If a licensee, or a joint venture partner, or a store, a
    26        McDonald's store, or group of stores, have to abide by the
    27        policies and standards of the Corporation, are you saying
    28        they only have to abide by them if they are written down
    29        and specified?
    30        A.  You are asking me now to get into contractual law.  You
    31        are asking me to get into franchising law.  I am not an
    32        expert in that area.  I do not know that area.  I do not
    33        deal with that area.  I do not let that area affect what
    34        I do in the Human Resources area.  You are going far
    35        afield.  You are asking me to interpret respective rights
    36        and privileges under a licence agreement; and I am not
    37        trying to be difficult with you, I am just trying to
    38        suggest that you need to stay within the employment ground,
    39        because I do not know beyond that, with any great
    40        expertise.  I do not deal with that.
    41
    42   Q.   But you said that the relationship between the
    43        Corporation -----
    44
    45   MR. JUSTICE BELL:  I am going to stop you asking general
    46        questions on this now.  I want you to go on with the
    47        specific parts of your cross-examination, and if you come
    48        to a stage in relation to any particular point where
    49        Mr. Stein says anything which could be interpreted as
    50        meaning, "Well, that was the franchisee, joint venture 
    51        partner's responsibility, not McDonald's Corporation", then 
    52        you can challenge him or ask him further questions about 
    53        what you suggest McDonald's Corporation could have done.
    54        But I think, quite frankly, for the last 20 minutes, we
    55        have just been going round in circles for lack of precise
    56        factual background to your questions.  So you must stop
    57        asking general questions on this now.  Bring it up,
    58        providing it is relevant to any particular situation,
    59        unless you come towards the end of your cross-examination.
    60        Then, if you want to come back to it, in the light of the

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