Assignment: Case Study – Michelin Award Restaurant


Here are the instructions for this assignment:


has won the Michelin Award two years in a row. The Michelin is awarded

to those ambitious chefs and restaurants for their culinary excellence.

It’s the most prestigious international award presented to qualified

establishments. The Michelin Guide has led the world in food and

restaurant inspections. To be honored with a Michelin Star denotes the

benchmark for excellence. Sally has joined the competition for her third

Michelin Star which is awarded to only the best restaurants.

Restaurants with three Michelin Stars are classified in the Michelin

guide as “exceptional cuisine, worthy of a special journey.” A two

Michelin Star classification denotes “excellent cuisine worth a detour.”

One Michelin Star simply says “very good cuisine in its category.”

Sally is set on winning the third Michelin Star and has been working on

the one and only qualification – “Perfection.”
So, as CEO of the

business, you agree that she should pursue her goal and pursue the third

Michelin Star. Your job is to support that goal. As CEO, you are

determined to restructure the company’s quality and popularity. You also

want the added benefit of streamlining the company’s operations in

order to increase profit margins. The restaurant you and Sally started

is heading into its third year of operation. Out of the other restaurant

operations you and Sally now have, this original site is the leading

income producer. It is also consuming the majority of all available

With this new direction comes other issues that have been put on your plate to resolve.

Access the Breach of Contract section to continue.

Breach of Contract

Sally, on behalf of the company, entered into a Contract with XOfil
Corp. for the fulfillment of 200 computer servers. The servers are
designed to perform critical functions in support of Sally’s invention
that coordinates the restaurant billing, tableside cuisine ordering,
interactive social networking, and the development and generation of
customer lists and through her app, “APPetite.”
The servers were to
be loaded with “Original Manufactures Equipment (OME)” that included the
OAnetX advanced computer chip. The computer chip was designed to
emulate the speed and performance of a supercomputer. The computer
chip’s capacity and speed ranges around 200 quadrillion (200 with 15
zeros) calculation per second. Sally ordered the chip in order to
increase the speed of the integration functions. If properly programmed,
it would reduce the amount of back-end support required to function in
real-time. The system requires restaurant staff to be tethered to the
servers and wear a VR System that allows staff to multitask and interact
with kitchen staff and meal delivery. The system is designed to
interact and recall customer desires and make instant changes to
culinary orders resulting in reduced errors. Customers have access to
tableside VR’s and can view the chef preparing meals in the kitchen.

It was discovered that 50% of the delivered servers were built in
a Chinese factory under contract with OAnetX; the contract specified
that the chips used were to be manufactured in the USA. The Chinese
factory has a US factory that is certified by the chip developer. The
chips were preassembled in China and shipped to the US factory for
finishing. There was a recent news report that indicated that certain
computer products were hacked by the Chinese government, which added a
device that allowed their spy agency to use the products as a corporate
spying tool to steal intellectual property from companies that used the

Access the Ethics section to continue.


The Maître d’ established a system in the restaurant where all tips
would be banked collectively and divided among all employees equally.
There have been some complaints recently that this may be a violation of
the employee handbook since it states that every employee will be
treated fairly in both the conditions of employment and compensation for
a fair day’s work. Employees were aware that the Maître d’s tips were
not shared with the rest of the employees, and he did not share their
tips. He did, however, accept tips from the wait staff because of
certain arrangements he made with them to place special customers in
their section. Several employees have begun to research the issues to
advise their coworkers of a course of action.

Access the Employment Law section to continue.

Employment Law

Several restaurant employees recently complained about having eye
strain, dizzy spells, nausea and loss of sleep. Some have speculated
that it is a result of the use of Sally’s app.
A few employees,
after attending their traditional after-work wind-down cocktail daily
debriefing, have fainted in the parking lot on their way to catch their
Uber ride. After a 12 hour day, it had become somewhat of a tradition
for employees to meet up across the street before heading home for a few
and laughs.
The restaurant’s Maître d’ has an appointment today with
you. Since you are the CEO, he wants to discuss some terms and
conditions of his employment. He believes that his work is undervalued,
in terms of recognition and salary. Under his employment agreement, his
terms and conditions have been capped for the last three years at the
current market level for top restaurants. He claims this treatment is in
violation of his employment agreement. The Maître d’ reminds you that
he assisted in the design of Sally’s app. Sally acquired the rights to
the app from the Maître d’ under a separate contract that is currently
still in effect. The Maître d’ is originally from California where he
designed the app and signed an employment contract and IP agreement.
are the potential issues the restaurant now faces? As with many
corporations, the restaurant potentially faces a number of legal issues
that ultimately could or already have ended up in court. As CEO, you
have scheduled a meeting with Sally to discuss your options.

Access the Issues to Consider section to continue.

Issues to Consider

Does the Maître d’ have any claims against the restaurant? If so, list potential claims.
it make any difference if the employment agreement is a work for hire,
jointly owned, or acquisition of intellectual property? Describe the
difference between the three and the effect on the intellectual
Consider whether the app was created and developed prior
to or after employment agreements. Does the Maître d’ control the rights
to the app regardless of when he invented it? Does it make a difference
if he signed an agreement that transferred ownership over to Sally?
Think about the impact of an invention that is sold prior to
registration with the Patent Office.

Access the Your Submission section to continue.

Your Submission


  • Based on the information in this case study, use the IRAC Form (DOCX) to list, analyze, and organize all issues. Explain your answers.
  • Provide the following information for Sally’s review:
    • Who are the potential parties for each issue you list?
    • Itemize each issue and what the parties would seek as a resolution to the issue.
    • Are the parties seeking legal remedies or equitable remedies?
    • What source of law is applicable?
    • What are your recommendations to Sally as to how to resolve the issues? Explain why you believe it would resolve the issue.
    • What federal or state agencies potentially could be involved if
      complaints are filed? List each agency and the legal area that has
      jurisdiction over these issues.

    I am also attaching the IRAC Form

  • Thanks

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