Day 139 - 21 Jun 95 - Page 05

     
     1        food and beverage products; the use of only prescribed
     2        equipment and building layout and designs; strict adherence
     3        to designated food and beverage specifications and to
     4        Licensor's prescribed standards of quality, service, and
     5        cleanliness in Licensee's restaurant operation."
     6
     7        Then at the bottom of that paragraph it says:
     8
     9        "....its" -- that is the Licensee's -- "accountability for
    10        performance of the obligations contained in its License,
    11        and its adherence to the tenets of the McDonald's System
    12        constitute the essence of this License."
    13
    14        So, really, you are telling people they have got to
    15        adhere -- they have to adhere to the standards and policies
    16        of the McDonald's Corporation; yes?
    17        A.  Sir, I am not a licensing attorney.  These are legal
    18        terms, legal words of art.  I think they speak for
    19        themselves.  I think that your Lordship can interpret them
    20        appropriately.  I am not the person to ask for a legal
         interpretation of a licence agreement.
    22
    23   Q.   But you represent the McDonald's Corporation and you are an
    24        attorney?
    25        A.  My area is strictly Human Resources.  I am not a
    26        contract lawyer, I am not a licence or franchise lawyer.
    27        Let us keep it -- with all due regard, we need to keep it
    28        within the scope of what I am aware of.  It is not for me
    29        to start guessing as to what things mean.
    30
    31   Q.   All right.  We will leave the interpretation, then.
    32
    33   MR. JUSTICE BELL:  It picks up -- there may well be other
    34        places, because I just read it through very quickly -- at
    35        clause 11 on page 8.
    36
    37   MR. MORRIS:  Yes.
    38
    39        "Licensee acknowledges that every component of the
    40        McDonald's System is important to Licensor and to the
         operation of the Restaurant as a McDonald's restaurant."
    42
    43        Right of inspection at all reason times.
    44
    45        "Licensee shall comply with the entire McDonald's
    46        System....."
    47
    48        Then it refers to ----
    49
    50   MR. JUSTICE BELL:  What I do not see at the moment -- 
    51        Mr. Rampton may be familiar with it -- is where what I 
    52        would call the forfeiture clauses are. 
    53
    54   THE WITNESS:   I cannot help you, my Lord.
    55
    56   MR. RAMPTON:  No, I cannot.
    57
    58   MR. JUSTICE BELL:  (To the witness)  You have another term for
    59        it which you use?
    60        A.  Default.