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Embargo on McDonalds Mesoamerica.

EMBARGO ON MCDONALDS MESOAMERICA. Failure to pay $24 million in compensation to Servipronto has led to an embargo of the brands McDonald's, Quarter Pounder, Big Mac and Ronald McDonald's, reports (Aug. 29, 2012). The executive judge is setting an embargo on the royalties paid by McDonalds Mesoamerica to McDonald's Corp. The judge has spoken to McDonald's CFO to determine how much this would amount to. Auction of the McDonald's brands would be the next step in the foreclosure process. It has been made known that McDonald's Mesoamerica, the operator of the franchise, will not talk about the embargo. In Oct. 2011 the Constitutional Chamber of the Supreme Court of Justice ruled against an appeal by McDonald's against the decision of the Second Civil Chamber of San Salvador, after a trial that lasted 14 years, in 2005 which condemned the multinational to pay $23.9 million in damages, and breach of contract against Servipronto of El Salvador. The transnational filed an appeal before the Constitutional Chamber, which ruled that the sanction was illegal because it had been tried twice for the same cause. In Oct. 2011, the Constitutional Chamber of the Supreme Court empowered Servipronto to collect the fine.
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Title Annotation:EL SALVADOR
Publication:Caribbean Update
Date:Oct 1, 2012
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