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CHAPTER 1 Introduction to Contemporary Hospitality Law CONTENTS A. Chapter Competencies B. What Is Law? C. Principles of Hospitality Law D. Sources of Law E. Attributes of Law F. How to Read a Case G. Answers to End-of-Chapter Questions Chapter […]

G. Answers to End-of-Chapter Questions ❊Review Questions 1. How is law defined? Law has many definitions. They include •Body of rules to which people must conform their conduct. 2. In what country did common law originate? England, or the United […]

CHAPTER 10 Guests’ Rights CONTENTS A. Chapter Competencies B. Introduction C. Right to Occupy Assigned Room D. Right to Privacy in Guest Room E. Protection Against Illegal Searches F. Protection Against Insults G. Protection Against False Arrest H. Protection Against […]

Guests’ Rights ■111 10-6-1. Why was the search of the briefcase not a violation of the defendant’s constitutional right against unreasonable searches? It was not a search for evidence but rather a minimum intrusion to obtain a means of identi- […]

CHAPTER 11 Liability and the Sale of Food CONTENTS A. Chapter Competencies B. Introduction C. Adulterated Food D. False Food Claims E. Smoking Restrictions F. Safety Concerns Particular to Food Preparation G. Answers to Case Example Questions H. Answers to […]

Liability and the Sale of Food ■121 ❊Sudden, unforseeable attack. ■If the restaurateur or bar owner cannot reasonably foresee injury to a patron, the owner’s responsibility to take steps to prevent attacks is limited. If, however, circumstances suggest that customers […]

CHAPTER 12 Liability and the Sale of Alcohol CONTENTS A. Chapter Competencies B. Introduction C. Alcoholic Beverages and the Hospitality Industry D. Alcohol Vendors’ Liability under Common Law E. Alcohol Vendors’ Liability Greatly Increases under Dram Shop Acts F. Liquor […]

Liability and the Sale of Alcohol ■133 I. Sexually Explicit Entertainment ❊Some bars provide nude or sexually explicit dancers (sometimes called “adult entertainment”). The mechanisms used by governments to deter these establishments are regulations or ordinances that restrict these business’s […]

CHAPTER 13 Travel Agents and Airlines— Rights and Liabilities CONTENTS A. Chapter Competencies B. Introduction C. The Makeup of the Travel Industry D. Remedies for Small Damages E. The Rights of the Traveler F. Special Rights of Airlines G. Rights […]

Travel Agents and Airlines—Rights and Liabilities ■145 ■Foreign citizenship alone cannot constitute notice of a driver’s incompetence. ■Renting to a person under age 25, without more concerns, does not constitute negligent entrust- ment, nor does negligent entrustment apply where a […]

CHAPTER 14 Employment CONTENTS A. Chapter Competencies B. Introduction C. Fair Labor Standards Act D. Illegal Job Discrimination E. Americans with Disabilities Act F. Mandatory Verification of Employment Status G. Résumé Fraud H. Occupational Safety and Health Administration I. Unions […]

162 ■Chapter 14 H. Occupational Safety and Health Administration ❊OSHA enforces laws passed by Congress and regulations adopted by OSHA that mandate safe conditions at work sites. ❊Additionally, some states have adopted their own safety standards, which are at least […]

CHAPTER 15 Regulation and Licensing CONTENTS A. Chapter Competencies B. Introduction C. Regulation of the Marketplace D. Franchising E. Regulation of Hotel and Restaurant Internal Affairs F. Licensing and Zoning G. Answers to Case Example Questions H. Answers to End-of-Chapter […]

•Where, however, the purpose of the license is to raise revenue (income for the government) and is unrelated to protection of the public, the ability of a business lacking the license to enforce its contracts will not be affected. ❊Revocation […]

CHAPTER 16 Specialized Destinations: Casinos, Theme Parks, and Spas CONTENTS A. Chapter Competencies B. Introduction C. A Short History of Gambling D. Gaming Issues E. Contracts and Gambling Debts F. Torts Involving Casinos G. Casinos and the Dram Shop Act […]

❊As with virtually all areas of a hotel or restaurant, various aspects of operating a spa can result in li- ability if reasonable care is overlooked by management. ❊Licensing. ■A license evidences authorization from the state for the license holder […]

CHAPTER 2 Legal Procedures: Journey of a Case through the Courts CONTENTS A. Chapter Competencies B. Introduction a. What Is a Claim? b. Relevant Factors and Costs C. The Parties and Proof D. Pretrial Procedure E. The Trial F. Appeal […]

Legal Procedures: Journey of a Case through the Courts ■13 I. Answers to End-of-Chapter Questions ❊Review Questions 1. How is a lawsuit begun? Depending on the law of the state where the case is pursued, a lawsuit is commenced either […]

CHAPTER 3 Civil Rights and Hospitality Businesses CONTENTS A. Chapter Competencies B. Introduction C. The Civil Rights Act of 1964 D. Enforcing the Act E. Exempt Establishments F. Extending Civil Rights Protection G. Rights of Proprietors H. Answers to Case […]

illegal discrimination against protected classes, they are enforceable even though the result may be that some people will be treated differently than others. ■In cases where a plaintiff sues a business and seeks service after the commencing lawsuit, the facility […]

CHAPTER 4 Contract Law and the Hospitality Industry CONTENTS A. Chapter Competencies B. Introduction C. The Elements of a Contract D. Ambiguous Terms/Trade Usage E. Contracts Formed on the Internet F. Breach of Contract G. Contracting for a Room H. […]

J. Catering and Convention Contracts ❊Explain the importance of details and care in entering catering and convention contracts. ■Given the many details involved when planning a catered event, there is virtually no excuse for not having a written contract. The […]

CHAPTER 5 Principles of Negligence CONTENTS A. Chapter Competencies B. Introduction C. Negligence D. Negligence Doctrines Generally Favoring the Plaintiff E. Negligence Doctrines Generally Favoring the Defendant F. Answers to Case Example Questions G. Answers to End-of-Chapter Questions Chapter Summary […]

■Most states that have adopted the comparative negligence rule have abolished assumption of risk as a total bar to recovery in tort lawsuits. Instead, assumption of risk is treated as another factor for the trier of fact (jury or judge) […]

CHAPTER 6 Negligence and Hospitality Practices CONTENTS A. Chapter Competencies B. Introduction C. Duty Owed Guests in Hotel Rooms D. Duty Owed Guests and Others in Public Areas E. Duty Owed Guests in Restaurants and Dining Rooms F. Duty Owed […]

❊Matching security to circumstances. ■Explain that reasonable care is the duty of care required by an innkeeper for guests’ safety. It is not a static, clearly defined concept. One definition will not fit all hotels in all locations at all […]

CHAPTER 7 Guests and Other Patrons CONTENTS A. Chapter Competencies B. Introduction C. Who Qualifies as a Guest? D. Intent of Parties E. Guests’ Illegal Acts F. Termination of a Guest-Innkeeper Relationship G. Landlord-Tenant Relationship H. Answers to Case Example […]

E. Guests’ Illegal Acts ❊Explain the effects, if any, concerning the status of a would-be guest who registers at a hotel giv- ing false information or who is involved in illegal activities. F. Termination of a Guest-Innkeeper Relationship ❊Explain the […]

CHAPTER 8 Protecting Patrons’ Property CONTENTS A. Chapter Competencies B. Introduction C. Risks to Property in the Hotel D. Limited Liability—Modern Limitations on the Absolute Liability Rule E. Clothes and Other Personal Property F. Fire G. Estoppel: Loss of Limited […]

■In a mutual-benefit bailment, the bailor has responsibilities as well as the bailee. The bailor is obligated to warn the bailee of any defects in the bailed property that might result in injury to the bailee or interfere with the […]

CHAPTER 9 Rights of Innkeepers CONTENTS A. Chapter Competencies B. Introduction C. Right to Exclude Nonguests D. Refusing Lodging to a Would-be Guest E. Selecting Accommodations for a Guest F. Changing a Guest’s Accommodations G. Evicting a Guest H. Refusing […]

False Arrest ❊When a hotel or restaurant believes it is the victim of crime, it should proceed cautiously. Overre- action can result in liability to the guest. When officers arrive, the manager will explain the basis for believing a crime […]

1. The process by which the federal government adopts laws is called: a. Precedents c. Legislative process b. Constitutional law d. Delegated powers 2. The type of law that legislatures make is: ANS: C XOAXOA: 1 a. Constitutional c. Case […]

1. Which of the following best describes a claim? a. The first document issued by the plaintiff in a lawsuit b. A demand for a remedy to compensate for a perceived wrong c. The first phase of a trial d. […]

1. Which of the following is not outlawed by the Civil Rights Act of 1964? a. Discrimination based on religion b. Discrimination based on sex c. Discrimination based on national origin d. Discrimination based on color 2. Which of the […]

1. Which of the following is not a contract? a. A restaurant purchases a month’s supply of condiments from a supplier and pays the agreed price. b. A hotel delivers newspapers to its guests’ rooms at no charge. c. A […]

1. Which of the following is not one of the elements a plaintiff in a negligence case must prove? a. The existence of a duty owed by the defendant to the plaintiff b. A breach of duty to act reasonably […]

1. Heather, a guest at a hotel, was injured when she caught her foot in a hole in the pavement on an outdoor tennis court operated by the hotel. Which of the following is true concerning the hotel’s liability? a. […]

1. Whether or not a person qualifies as a guest impacts a hotel’s liability for all of the following except one. Which one is not affected by the presence or absence of such a relationship? a. Liability of negligence c. […]

1. Under common law, which of the following accurately describes the general rule concerning the liability of a hotel when a guest’s property was lost or stolen? a. The hotel was strictly liable for the full value of the loss. […]

1. Daisy arrived at a hotel at 3:00 a.m. She rang the bell on the registration desk to alert the sleeping attendant of her presence. Which of the following is true? a. If the hotel has vacancies, it must provide […]

1. Which of the following is not a basic right of a guest? a. The right to privacy in the guest room b. The right not to be insulted c. The right to a room of the guest’s choice d. […]

1. Which of the following is a set of rules designed to simplify and modernize the law governing the sale of goods? a. Dram shop acts c. The Uniform Commercial Code b. The Constitution d. Stare decisis 2. According to […]

1. Which of the following is not necessary for a liquor license applicant to prove? a. Evidence exists of the applicant’s good character. b. The applicant has not been convicted of a felony. c. The applicant has a masters degree […]

1. Which of the following is not true about independent contractors? a. They furnish their own supplies and equipment. b. They may or may not be agents. c. They take direction from the person who hires them on how to […]

1. Which of the following does the Fair Labor Standards Act not require? a. Payment by the employer of minimum wages b. One and one-half times the regular pay for overtime work c. Prohibition against discrimination on the basis of […]

1. Which of the following is not an objective of zoning laws? a. To achieve balanced development in an area b. To protect the environment c. To preserve the residential quality of neighborhoods d. To minimize the adverse effects of […]

1. Which of the following is not a defense a casino can use against a patron to collect money lent for gambling in a lawsuit? a. Incapacity c. Duress b. Lack of probable cause d. Unconscionability 2. Which of the […]

Casinos are ensurers of their patrons’ safety. Answer: The legal duty we have to act reasonably is owed to everyone. Answer: F A person who regularly drinks at a licensee’s premises and frequently becomes intoxicated is called a ______________________________. Answer: […]

The following is an offer: ‘We have chicken, fish, and meat entrees.’ Answer: The obligation of an innkeeper to refrain from using abusive language is the same whether the object of the comments is a guest or a non-guest. Answer: […]

A patron in a hotel cocktail lounge who was not a registered guest in the hotel claimed he was shortchanged by the waiter and then was insulted, humiliated, and embarrassed. The ____________________ of the hotel turned on whether the patron […]

Dan is about to open a restaurant. Which of the following is not one of the licenses or permits the local government may require that he obtain? a. A restaurant operator’s license b. A liquor license c. A recycling license […]

The basis for imposing the warranty of merchantability on sellers of goods is public policy for the protection of consumers. Answer: A fifteen-story hotel is hiring someone to wash exterior windows. Due to the dangers of the job, it sought […]

A hotel with a revolving door should have an attendant at the door under the following circumstances: ________________________________________________________. Answer: The Indian Gaming Regulatory Act is a federal law that was passed by Congress. Answer: T Jim returns to his room […]

Which of the following types of property are covered by limiting liability statutes that require a hotel to provide a safe? a. Merchandise samples b. Jewelry c. Photographic equipment d. Expensive clothing Answer: Matt took his girlfriend to an elegant […]

When a fight breaks out at a bar, and it is unforeseen, the bar is not ____________________. Answer: Most states have passed laws prohibiting certain types of discrimination not covered by the Civil Rights Act of 1964. Answer: T A […]

The process of administering a massage necessarily involves close personal contact between the massage therapist and client and therefore requires that both parties remain fully clothed. Answer: The reasonable expectation test examining whether an object found in food ought to […]

The Civil Rights Act of 1964 is not violated unless a pattern of ongoing discrimination is proven; a single act of discrimination does not violate the Act. Answer: In a mutual-benefit bailment, both the bailor and the bailee owe each […]

A hotel with a revolving door will be liable for all injuries that result from its use unless an attendant is on duty to oversee its use. Answer: In contract terms, how would you describe the following: ‘If the price […]

Preparation of kosher food is supervised by a ____________________ or a designee. Answer: A casino cannot legally exclude card counters from playing blackjack. Answer: F A ____________________ case is one sufficient to warrant a judgment for the plaintiff if the […]

A restaurant was sued when a diner was injured by a malfunctioning automatic entry door. If the restaurant can prove that it has a regular maintenance and inspection plan for the doors, it may be able to establish that it […]

The law strives to motivate both the ____________________ and ____________________ to strictly comply with the law. Answer: If the problem that caused injury to a diner at a restaurant could not have been discovered upon a reasonable examination of the […]

Which of the following means, ‘the thing speaks for itself’? a. Attractive nuisance doctrine b. Res ipsa loquitur c. Negligence per se d. Last clear chance Answer: In a criminal case, who pays for the plaintiff’s attorney? a. The victim […]

The amount and types of security precautions required by a hotel are relative concepts that must be determined for each hotel based on all the relevant circumstances. Answer: Claims alleging violations of Title VII are filed with the __________________________________________________. Answer: […]

Where an agent acts outside the bounds of delegated authority, the principal is not bound. Answer: Governments can impose license fees that exceed the cost of administering the license and can use the money for the general operation of the […]

Most cases end up in trial. Answer: A ____________________ issue in many lawsuits against hotels is whether the plaintiff was a guest in the legal sense. Answer: threshold A hotel is an ensurer of guests’ safety. Answer: F It is […]

The test to determine whether two jobs are the same for purposes of the rule of ‘equal pay for equal work’ is ___________________________________________________________________. Answer: A shepherd’s crook, or life pole, as required for hotel pools by ordinances, is a pole […]

A plaintiff proved that she slipped on a fresh cherry on the floor of a restaurant in which she was having lunch. The restaurant proved that it exercised reasonable care in maintaining a clean floor. True or false: The plaintiff […]

A woman was sitting in a hotel lobby. She was not a guest and had no intention of renting a room. What action can the hotel legally take? a. The woman has an implied license to be on the premises, […]

Mandy was going on a six-day trip and was concerned about her vegetable garden. A neighbor agreed to go to Mandy’s house every other day and water the plants while Mandy was gone. True or false: This relationship constitutes a […]

The actions of the parties usually provide the needed ____________________. Answer: A method for settling disputes in which a person other than a judge listens to both parties’ positions and then makes a determination or assists the parties in resolving […]

A hotel that has acknowledged in writing the presence of merchandise samples will be liable for the full value of their loss if it was caused by the hotel’s negligence. Answer: From the time a visitor of a hotel guest […]

Tom’s girlfriend handed her expensive winter coat to the attendant at the restaurant coat-check. She did not disclose to the attendant that she had placed three $100 bills in the inner pocket of the coat. Does the bailment exist of […]

The powers given to the federal government in the Constitution are the _________________________. Answer: ____________________ is a process by which local governments can restrict the way property owners use their land. Answer: Zoning Probable cause is a defense to the […]

A diner paid for dinner with a check. Two days earlier the diner had closed the account on which the check was drawn. The diner is guilty of the crime of ______________________________. Answer: Grilled black bass is a very popular […]

A hotel has only one safe, which is located at the registration desk. The safe is open from 7:30 a.m. until midnight. True or false: This availability will protect the hotel from full liability in cases of loss of guests’ […]

A compulsive gambler is also known as a pathological gambler. Answer: An injunction in a civil rights case usually orders the offending party to stop discriminating. Answer: T The legal duties owed by an innkeeper to a guest differ from […]

A hotel may be held liable for acts of its managers that violate antitrust laws. Answer: The police arrive at a hotel with a warrant for a guest. The innkeeper owes a duty to the guest to refrain from informing […]

Jenny lent her camera to a friend who was going to a wedding reception. This kind of bailment is called a bailment ___________________________________. Answer: An oral contract made by a restaurant for the purchase of a freezer for $1,100 is […]

Which of the following items, if brought to a hotel by a guest, is not subject to the innkeeper’s lien? a. A camera c. Merchandise samples b. A wedding ring d. Property in the hotel safe Answer: Derry Community College […]

If a plaintiff in a negligence case is unable to prove proximate cause, the plaintiff will lose the case and not be able to recover. Answer: The reason for the recent popularity of riverboat casinos is ____________________________________________________________. Answer: laws in […]

An innkeeper seized the property of a nonpaying guest pursuant to the innkeeper’s lien. The property was stored temporarily in the baggage room. The guest sneaked into the baggage room and removed some of her property. True or false: The […]

Congress sets the minimum wage; states may not pass laws varying from the minimum wage set by Congress. Answer: Two remedies for copyright infringement are ________________________________________, ________________________________________. Answer: a cease-and-desist order requiring the infringer to stop the illegal copying, and […]

Zoning laws can prevent an owner of land from using it to operate a restaurant. Answer: If a beverage is above boiling hot, the product does not need to be branded with ‘Caution, hot beverage.’ Answer: F A restaurant’s duty […]

The __________________________________________________ requires employers to verify the employment eligibility of all employees to prevent illegal aliens from working in the United States. Answer: If a hotel fails to properly post notice of the availability of safes, the consequence is ____________________________________________________________________. […]

Punishment to those who wrongfully serve alcohol to a person not legally permitted to drink can include _____________________________________________________________________. Answer: A motel charged a higher fee for single women registering for a room than for a single man. True or false: […]

Two factors a manager should consider when deciding how to handle a case brought against a business are ________________________________________, ________________________________________. Answer: Dram shop act liability applies only if injury to a third person is caused by a car accident. Answer: […]

A judge can never deviate from precedents. Answer: Having a ‘lady’s night’ or a ‘men’s night’ when drinks are offered at a lower price to one gender only, is restricted under the discrimination law. Answer: F Tanning booths are sometimes […]

A form of sexual harassment that involves promises of job benefits in return for unwelcome sexual advances or a request for sexual favors is called ______________________________. Answer: Both the lawyers and the judge can ask questions during the voir dire; […]

A guest was observed by hotel security stealing money from the pocket of another guest while both were at the hotel bar. The hotel can legally detain the thieving guest until the police arrive. Answer: When erecting unassembled furniture, hotel […]

A dining facility will be covered by the Civil Rights Act of 1964 if it meets one of two criteria. The two criteria are ________________________________________, ________________________________________. Answer: The Indian Gaming Regulatory Act divides gaming into how many classes? a. Three […]

The person who administers spa services without the necessary ____________________ is considered illegal, and this will result in jail time. Answer: _________________________ are the personal rights that derive primarily from the Constitution, such as free speech, freedom of contract, and […]

The outdated term for a bar, which later became the name of a liability act, is _________________________. Answer: The innkeeper-guest relationship is a ____________________ one. Answer: contractual An important factor in determining whether a person qualifies as a guest is […]

Referring to a situation in which the property of a guest is stolen from a hotel, ____________________ means that an insurance company that reimbursed the guest for the loss can sue the hotel in lieu of the guest. Answer: Age, […]

An airline pilot has considerable authority to remove travelers who are suspected of being hijackers. Answer: ______________________________ is business affecting more than one state. Answer: Interstate commerce The practice of overbooking by an airline is illegal and will subject the […]

Many states have laws barring innkeepers from accepting as guests people they know are registering under false names. The primary purpose of these laws is that false names ____________________________________________________________. Answer: _________________________ have the authority to review the handling and decision […]

Gambling is highly regulated by the government. Answer: A man has his hair cut every other week at a hotel barber shop. True or false: He qualifies as a guest. Answer: F Licensees are not responsible and can permit disorderly […]

If a state has passed laws that prohibit gambling, the state can enforce those laws on an Indian reservation located within that state. Answer: Most states’ limiting liability statutes either relieve a hotel from liability or limit the liability when […]

Why is the existence of small claims court significant to the hospitality industry? a. Small claims court is the court with jurisdiction to hear claims against travel agents. b. Small claims court expands the types and number of lawsuits that […]

A traveler with an airline reservation who is bumped due to overbooking is entitled to damages based on ______________________________. Answer: A traveler who purchases discount tickets from a travel agent has fewer rights than a person who purchases full-price tickets. […]

A couch in a hotel room was quite worn, and a spring from the seat was poking through. Sarah, a guest, sat on the coach and was injured by the spring. True or false: The hotel is liable for Sarah’s […]

The licensee is the ____________________ or ____________________. Answer: The following question is permissible for an employer to ask during an employment interview: What medications are you taking? Answer: F The Civil Rights Act of 1964 prevents a hotel from barring […]

Companies should establish a sexual harassment policy containing all but which of the following? a. A compliant procedure that authorizes employees to file complaints directly with their supervisor. b. A rule requiring that, if the victim concurs, all complaints should […]

Anticompetitive activities that always violate the antitrust laws are called _________________________. Answer: Workers at a hotel were painting a sitting room near the lobby. They did not post a sign warning people of the presence of paint and related paraphernalia, […]

If assumption of risk applies, the defendant will not be liable. Answer: A _________________________ is an obligation that cannot be transferred to another. Answer: nondelegable duty Licensees can be located in whichever area they choose. Answer: T A common law […]

To win a lawsuit, the plaintiff must show what types of injuries? Answer: A diner can sue a restaurant when the server neglected to prepare the meal correctly. Answer: T Requiring a business to forfeit part of its operations because […]