Free Essay

Kudler Fine Foods Product Liabilty

In: Business and Management

Submitted By lewisme6
Words 743
Pages 3
Kudler Fine Foods, owner Kathy Kudler has recently expanded her business to include a catering service, but she needs to be aware of basic food regulations, product liabilities, and good workplace practices to meet all requirements set by food and safety regulations.
In today’s society many consumers such as very young children, the elderly and pregnant women with very sensitive immune systems that is more at risk for food borne illnesses. “According to the Center for Disease Control and Prevention (CDC) there are five factors that contribute to the unsafe food preparation techniques in food establishments that is considered food borne illnesses by the FDA” (U.S. Department of Health and Human Services, 2006, P.3).
Warning and safe labeling on food is to help keep consumers abreast of food borne illness and how to prepare food the proper way. These warning labels help many consumers change the way they handle food preparation at home to prevent making themselves ill.
Five food borne illnesses are:
• Unsafe food sources
• Insufficient cooking times
• Inaccurate temperatures for holding food.
• Unclean equipment
• Staffs personal cleanliness

Kathy Kudler and her operations management team will need to decide on a food management safety system that will help them manage their food related risk. One-way Kudler can began to implement a safe food managing plan is to take a general assessment of food regulations set by the Hazard Analysis and Critical Control Point (HACCP) system. “Hazard Analysis and Critical Control Point (HACCP) system determines where contamination can happen during food production” (U.S. Department of Health and Human Services, 2006, P.11).
Section 205.308 of the National Organic Program (Agricultural Marketing Service – National Organic Program, 2008), requires that organic food be produced, processed, certified, and labeled to meet national organic standards.
Here are four approved organic labeling methods:
• 100% organic
• 95% organic or more
• 75% to 95% organic
• 70% or less organic
Kathy Kudler and her operation management team must monitor the workforce to assure they do not become careless with labeling food products incorrectly. Mislabeling a food product could lead to serious criminal and civil liabilities for Kudler Fine Foods. “Product liability is when a consumer is injured by a defective product and can be legally compensated from the retailer” (Einstein Law, 2004, P.1).
In product liability cases negligence and strict liability plays an extreme part in determining the outcome of a case. Strict liability makes a business responsible for all injuries sustained by consumer who purchased a defective product; on the hand negligence makes a business legally responsible for getting medical care to a consumer who was injured by defective products when the business refuses to provide it.
Kathy Kudler must surround herself and her business with good legal advisors who are knowledgeable about food product liability laws and regulations. Food product liability insurance can protect a retailer in the event a consumer is injured by a food product. Suggested coverage that a retailer should carry is in the range of $1 million to $2 million dollars. A good business practice is to ask suppliers for certificates of insurance in order to operate as a real company and to protect assets.
Kathy has been very fortunate to have her sister-in-law Anne Shousha as her legal counsel; this has help Kathy keeps her legal fees to a minimum. Even though Kudler Fine Foods is a fairly new establishment the business has already had several customer accidents that have ended in litigation and out of court settlements.
Kathy Kudler must also implement safety regulations for food preparation for her workforce to be trained in. These safety standards should consist of sanitation of hands during and after food preparation, the correct ways to handle ready to eat foods, the correct way to label organic and non-organic foods, the correct temperatures to set for hot and cold foods, and how to keep good food records for traceability.
Good record keeping allows Kudler to keep accurate dates of purchase, product sources, food quantities and certifying agents for organic products. These records should be kept and maintained for at least 3 years. Food service operators have a responsibility to maintain a safe food managing plan. Kudler Fine Foods can avoid any future litigation by making sure staff and managers are accurately trained in food preparations and handling, record keeping and correct labeling of foods to help consumers stay aware of potential dangers of not preparing foods correctly.

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