B K - Controversies and Legal Cases

Controversies and Legal Cases

Burger King has been involved in several legal disputes and cases, as both plaintiff and defendant, in the years since its founding in 1954. Disputes involving these many legal topics have affected almost every aspect of the company's operations. Depending on the ownership and executive staff at the time of these incidents, the company's responses to these challenges have ranged from a conciliatory dialog with its critics and litigants, to a more aggressive opposition with questionable tactics and negative consequences. The company's response to these various issues has drawn praise as well as accusations of political appeasement from different parties over the years.

Controversies and disputes have arisen with groups such as People for the Ethical Treatment of Animals (PETA), governmental and social agencies, and unions and trade groups over various topics. These situations have touched on legal and moral concepts such as animal rights, corporate responsibility, ethics, and social justice. While the majority of the disputes did not result in lawsuits, in many of the cases the situations raised legal questions, dealt with legal compliance, or resulted in legal remedies such as changes in contractual procedure or binding agreements between parties. The resolutions to these legal matters have often altered the way the company interacts and negotiates contracts with its suppliers and franchisees, or how it does business with the public.

Further controversies have occurred during the company's expansion in the Middle East. The opening of a Burger King location in Ma'aleh Adumim, an Israeli settlement in the Israeli-occupied Palestinian territories, led to a breach of contract dispute between Burger King and it's Israeli franchise due to the hotly contested international dispute over the legality of Israeli settlements in the Palestinian territories in accordance to international law. The controversy eventually erupted into a geopolitical dispute involving Muslim and Jewish groups on multiple continents over the application of, and adherence to, international law. The case eventually elicited reactions from the members of the 22-nation Arab League. The Islamic countries within the League made a joint threat to the company of legal sanctions including the revocation of Burger King's business licenses within the member states' territories.

A related issue involving members of the Islamic faith over the interpretation of the Muslim version of canon law, Shariah, regarding the promotional artwork on a dessert package in the United Kingdom raised issues of cultural sensitivity, and, with the former example, posed a larger question about the lengths that companies must go to insure the smooth operation of their businesses in the communities they serve.

A trademark dispute involving the owners of the identically named Burger King in Mattoon, Illinois, led to a federal lawsuit. The case's outcome helped define the scope of the Lanham act and trademark law in the United States. An existing trademark held by a shop of the same name in South Australia forced the company to change its name in Australia, while another state trademark in Texas forced the company to abandon its signature product, the Whopper, in several counties around San Antonio. Legal decisions from other suits have set contractual law precedents in regards to long-arm statutes, the limitations of franchise agreements, and ethical business practices. Many of these decisions have helped define general business dealings that continue to shape the entire marketplace.