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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.
b.
The hotel was not liable regardless of the cause of the theft.
c.
The hotel was liable only if the negligence of its employees contributed to the theft.
d.
The hotel was liable only if its employees were grossly negligent.
2. Which of the following was not an exception to the common law rule concerning liability of a hotel
when a guest’s property was lost or stolen?
a.
The loss was caused by an act of God.
b.
The loss was caused by the guest’s negligence.
c.
The loss was caused by an act of public enemy.
d.
The loss was caused by an act of a hotel employee.
3. A hurricane was expected in the vicinity of a hotel. The police ordered everyone within a 25-mile
radius to evacuate, and television stations broadcast the plans for evacuation. The hotel ignored the
warnings and did not inform its guests of the evacuation directive. As a result, the hurricane caused
extensive damage to guests’ property. Is the hotel liable for the loss under these circumstances?
a.
No, a hotel is not liable when the cause of the damage was an act of God.
b.
No, a hotel has no liability for guests’ property.
c.
Yes, a hotel is liable when it could have avoided the damage by the exercise of reasonable
care.
d.
Yes, a hotel is absolutely liable for all loss caused to guests’ property when they are at the
inn.
4. Which of the following is not required by limiting liability statutes?
a.
The hotel must provide safes for the safekeeping of guests’ property.
b.
The hotel must post notices announcing the availability of the safes.
c.
The safes must pass inspection by a safety commission to ensure their suitability for
deterring thieves.
d.
The hotel must post notices announcing the hotel’s limited liability.
5. If a hotel complies with a limiting liability statute and a guest’s property is stolen, what, if any,
liability does the hotel have?
a.
The hotel will be liable for the full amount of the loss.
b.
The hotel will be liable only for the amount set by the statute.
c.
The hotel will have no liability.
d.
The hotel will be required to pay the guest double the amount of the loss.
6. Which of the following types of property are covered by limiting liability statutes that require a hotel
to provide a safe?
a.
Merchandise samples
c.
Photographic equipment
b.
Jewelry
d.
Expensive clothing
7. A guest’s leather coat was stolen from the guest room by a new housekeeping employee who had a
criminal record that included two convictions for theft and burglary. The hotel had failed to inquire
about or investigate the employee’s criminal past. What liability does the hotel have in this
circumstance?
a.
The hotel has no liability.
b.
The hotel will have only limited liability in the amount specified by the state statute.
c.
The hotel will be fully liable for the loss.
d.
The hotel will be liable for double the loss.
8. Which of the following is true about a hotel’s liability for merchandise samples?
a.
It is not liable unless the guest notifies the hotel of their presence and the hotel
acknowledges in writing their presence and value. If the hotel does so, it has unlimited
liability.
b.
It is not liable unless the guest notifies the hotel of their presence and the hotel
acknowledges in writing their presence and value. If the hotel does so, it has limited
liability.
c.
A hotel has unlimited liability for merchandise samples.
d.
A hotel has no liability for merchandise samples regardless of a written acknowledgment.
9. A guest discussed with the front desk clerk his concern over an expensive ring he brought to the hotel.
The desk clerk recommended that he put the ring in the safe and advised the guest that, by doing so,
the hotel would be liable for the full value of the ring if it disappeared. The guest did as recommended.
The ring was stolen from the safe. What, if any, is the liability of the hotel?
a.
The hotel is liable for the full loss.
b.
The hotel’s liability is limited by the amount set by statute for property in a safe.
c.
The hotel’s liability is limited by the amount set by statute for property in a checkroom.
d.
The hotel has no liability for the loss.
10. Shannon is a receptionist in the hotel dining room and is required to wear dressy clothes to dinner. One
of her outfits needs shortening, and she delivers it to the tailor. Who is the bailee?
a.
Shannon
c.
The tailor
b.
The hotel
d.
The manufacturer of the dress
11. Ed, when packing to go home at the end of his vacation, inadvertently left an expensive portable CD
player in his hotel room. He did not discover the loss until he had driven two hours toward home.
Which of the following is true concerning the hotel’s liability in this example?
a.
Ed will be treated as a guest, and the hotel’s liability will be limited.
b.
Ed will not be treated as a guest, and the hotel will be liable for the full value of the loss.
c.
Whether or not Ed is a guest is not relevant; the hotel will be fully liable for the loss.
d.
Ed will be treated as a guest, and the hotel will be fully liable for the loss.
12. Matt took his girlfriend to an elegant restaurant to celebrate their engagement. He was driving his
father’s car. When he arrived at the restaurant, he gave the car keys to the valet parking attendant and
entered the restaurant. Which of the following in this situation is the bailee?
a.
There is no bailee in this situation
c.
The restaurant
b.
Matt’s girlfriend
d.
Matt’s father
13. Which of the following is not a required element of a bailment?
a.
Personal property
b.
Delivery of possession
c.
Acceptance of possession by the bailee
d.
A written agreement
14. Jon was a guest at a hotel. By mistake he left his radio by his lounge chair at the pool. Within moments
and before hotel personnel were aware of its presence by the pool, the radio was stolen. Is the hotel
liable based on bailment?
a.
Yes, it is liable for the full value of the loss.
b.
Yes, but its liability is limited by statute.
c.
No, no bailment exists in this case.
d.
No, although a bailment exists, the hotel did nothing wrong.
15. 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 $300?
a.
Yes, the necessary elements for a bailment were met.
b.
Yes, money can be the subject of a bailment.
c.
No, money cannot be the subject of a bailment.
d.
No, the attendant was not aware of the money’s existence.
1. A laptop computer owned by a guest was stolen from the hotel room. True or false: If the guest has
insurance coverage on the computer, the hotel will not be liable.
2. Prior to the advent of limiting liability statutes, an ice storm occurred in a small town where the
Miscadem Motel was located. Heavy ice formed on tree limbs, causing many to break from the weight.
One heavily iced branch fell on a hotel window, causing it to break. Shattered glass caused injury to a
guest’s property inside. True or false: Under common law the hotel would have been liable for the
loss.
3. All state legislatures have adopted statutes to limit hotelkeepers’ liability for guests’ property losses.
4. 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’ jewelry.
5. The Bedrock Motel includes on its registration form a notice of the availability of a safe and that the
hotel’s liability is limited. The statute of the state in which the motel is located requires posting in all
the public rooms of the hotel. True or false: The notice on the registration form satisfies the statutory
posting requirement in most states.
6. Notice posted by a hotel that safes are available for safekeeping of guest’s property, without more, is
adequate compliance with most limiting liability statutes.
7. Whether or not a guest’s watch should be placed in a hotel safe may depend on the value of the watch.
8. A hotel guest, while dining in the hotel’s restaurant, maintains her status as a guest for purposes of
limiting liability statutes.
9. 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.
10. Most states’ limiting liability statutes either relieve a hotel from liability or limit the liability when loss
is caused to guests’ property from fire, provided the fire was not due to the hotel’s negligence.
11. Concerning liability for lost property of guests, Nevada is more protective of its hotels than are most
other states.
12. Dan checked out of a hotel by the noon deadline, but his plane was not leaving until 7:00 p.m. He
decided to shop in the interim and left his bags in the hotel’s baggage room. True or false: While Dan
is shopping, he qualifies as a guest for the purposes of the limiting liability statute.
13. Ashley was attending a play at a theater. As she entered the building, she left her coat on a rack in the
hallway. True or false: A bailment between Ashley and the theater was created in this circumstance.
14. A bailment of a car cannot occur unless the driver gives the keys to the parking lot attendant.
15. 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 bailment.
16. In a mutual-benefit bailment, both the bailor and the bailee owe each other certain duties.
17. To be successful in a lawsuit, a bailor whose property has been damaged by a bailee must present
evidence to establish that the bailee was negligent.
1. 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.
2. The common law rule of ______________________________, adopted by six states, provided that a
hotel was liable for loss caused to guests’ property only if the hotel was negligent.
3. ______________________________ refer to goods for sale brought to a hotel by a salesperson/guest.
4. Equitable estoppel precludes a person from claiming a right or benefit that might otherwise have
existed because that person made a ______________________________ to someone else who relied
on it to his or her detriment.
5. Jenny lent her camera to a friend who was going to a wedding reception. This kind of bailment is
called a bailment ___________________________________.
6. In a bailment for the sole benefit of the bailor, the bailee is required to exercise
______________________________ of care for the bailed evidence.
7. A ____________________ case is one sufficient to warrant a judgment for the plaintiff if the
defendant does not contradict the evidence.
8. A bailment created by law rather than agreement is called a ____________________ bailment.
1. A guest arriving at the airport entrusted her luggage to the hotel hospitality van driver while the guest
went out for dinner with a friend. When the guest later arrived at the inn, she learned the luggage has
been destroyed in a car crash caused by the inexperience of the van driver. The liability of the hotel in
this circumstance is ____________________________________________________________.
2. If a hotel fails to properly post notice of the availability of safes, the consequence is
____________________________________________________________________.
3. Three strategies a hotel might employ to reduce the incidents of hotel theft are
________________________________________, ________________________________________,
________________________________________.
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