Day 139 - 21 Jun 95 - Page 30

     
     1        A.  He and any managers who were culpable in the matter.
     2
     3   Q.   So the individual managers, if culpable, could be targets
     4        as well?
     5        A.  Exactly.
     6
     7   MR. MORRIS:  He had 12 stores.  How long had he been a
     8        franchisee?
     9        A.  For a number of years.
    10
    11   Q.   Five years, 10 years?
    12        A.  Probably in the realm of 10 years or more.
    13
    14   Q.   So McDonald's, the inspection and enforcement system, had
    15        completely failed to notice the incompetence of this
    16        manager -- sorry, this owner/operator -- and the running of
    17        these stores?
    18        A.  I do not know how -- you know, what the meaning of
    19        "incompetence" is.  They had failed to note any
    20        violations.
    21
    22   Q.   But was McDonald's inspecting these stores?
    23        A.  Our field consultants would do spot checks of things,
    24        yes.
    25
    26   Q.   I cannot remember what year this was.  Do you remember what
    27        year?  Was it 1988/89?
    28        A.  Yes.
    29
    30   Q.   But the McCale management of the McDonald's restaurants,
    31        your restaurants franchised to McCale in that town, you
    32        were not deliberately turning a blind eye to things, were
    33        you?
    34        A.  We clearly would not.  If we had any knowledge of it,
    35        we would have acted on it and brought it to the attention
    36        of the operator.
    37
    38   Q.   So they would not have been treated any different from any
    39        other franchisees around the country ---
    40        A.  That is correct.
    41
    42   Q.   -- in their inspection systems and whatever?
    43        A.  No.  If we became aware of something through our --
    44        looking at these things, we would certainly bring it to his
    45        attention.
    46
    47   Q.   So the reality is that there could be thousands of stores
    48        at that time with similar violations, and you just were not
    49        noticing?
    50        A.  Anything is possible, but the local authorities and the 
    51        federal authorities and the state authorities are 
    52        constantly auditing and checking our stores, other stores, 
    53        all businesses.  So there is more than just the Company to
    54        look into these things; you also have to look at the
    55        various authorities that were in each of those stores on a
    56        continuing basis.
    57
    58   Q.   So the state authorities have to do the job that McDonald's
    59        Corporation is failing to do?
    60        A.  No, no.  It is the way the process and the system