Regulatory Environment Assignment
c. Organic produce does not have preservatives. What product liability implications does this have for Kudler? What regulatory implications does this have for Kudler?
Consumers are concerned with health hazards stemming from industrial products containing additives, coloring agents, "man made" substances, or any additional preservatives. Kudler states, "Because we do not use any preservatives, approximately 12% of our perishable goods are rotated out of inventory every two or three days..."(KFF) This avoids premature spoiling and unhealthy products which can lead to legal liability issues. In addition, Kudler will have to set standards of operation in order to maintain the integrity of their organic products.
Currently, Kudler does not have a standard form policy utilizing contracts with organic food suppliers. As a legal safeguard, it is important that Kudler management implement a legally binding agreement (contract) with current suppliers. The contract should detail specific information about the vendor and product requisitions. The form should address the following concerns: Does the vendor have a consistent deliver schedule? What price points will Kudler and vendor(s) state in the contract? Will the vendor provide quality management assistance? Further, Kudler needs to investigate vendor harvest practices and examine methods used to preserve organic products before distribution to stores.
The following sources will assist Kudler with organic food regulations:
Organic Trade Association (OTA)
"Organic Trade Association (OTA) is a membership-based business association that focuses on the organic business community in North America. OTA's mission is to promote and protect the growth of organic trade to benefit the environment, farmers, the public and the economy." (Gray, 2007)
National Organic Standards Board (NOSB)
"The Organic Foods Production Act of 1990, part of the 1990 Farm Bill, authorized...