Products Liability Research Paper

Products Liability Research Paper

LEG 500

Professor

12/19/2012

Background

McDonald Corporation is one of the world’s largest fast food restaurant chains. McDonald’s stock is on the New York Stock Exchange sold under the symbol MCD. Their headquarters is in Oak Brook, Illinois. The company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, the McDonald brothers reorganized their business to be a hamburger stand. Ray Kroc a businessperson joined the company as a franchise agent in 1955. Ray Kroc subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. The current corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, which was the ninth McDonald's restaurant overall. Kroc went on to purchase the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965.

McDonald's restaurants are operated by a franchisee, an affiliate or the or the corporation itself. The corporation's revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion.

Over the years, McDonalds went from primarily selling hamburgers, french fries, soft drinks, milkshakeshttp://en.wikipedia.org/wiki/Milkshake, and desserts to include salads, wraps, among other items. This was in response to the changing taste of its consumers. During the 1970’s McDonald’s added breakfast items to their menu.

Describe the company and the product safety issue that led to the lawsuit. 15%

McDonalds’ started selling breakfast in the 1970’s the breakfast menu included biscuits, the egg mcmuffin, and other items including coffee....