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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 carry out their assigned
tasks.
d.
They are paid on commission, not salary.
2. 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 might be brought
against travel agents and airlines because people with small claims can avoid the expense
of hiring a lawyer.
c.
Small claims court restricts the types of cases that can be brought against an airline.
d.
Small claims court has jurisdiction to exclusively hear cases against the hospitality
industry.
3. Two hundred members of a certain ski club paid $3,000 each for a European ski trip. The company
that sponsored the trip went out of business without providing the trip and without returning the club
members’ deposits. What type of action best suits this circumstance?
a.
A class action
b.
A small claims action
c.
A negligence action
d.
An independent contract’s action
4. If a judge, while applying an international treaty in the course of deciding a case, disagrees with parts
of the treaty, what should the judge do?
a.
Apply its term regardless of his or her personal disagreements with the treaty
b.
Reject the treaty
c.
Modify the treaty to the judge’s liking
d.
Ask Congress to reconsider the treaty while the case is pending
5. What types of damages are recoverable by the owner of a dog that dies while in the custody of the
airline?
a.
Mental anguish
c.
The value of the dog
b.
Punitive damages
d.
Loss of services
6. Jan was an authorized agent for an airline. Due to shoddy work on her part, the airline withdrew the
authorization for Jan to act as an agent. Nonetheless, she sold tickets to a customer. The airlines
refused to honor the tickets. Who is liable to the customer for the money paid for the tickets?
a.
The airline
b.
Jan
c.
The Department of Transportation
d.
No one is liable to the customer in this circumstance
7. To avoid liability for breach of contract when an airline cancels a flight for a good cause, what must
the airline do?
a.
Reimburse the passenger double the amount of the cost of the ticket to cover the
inconvenience
b.
Assist passengers in locating alternate flights to reach their destination
c.
Reimburse the passenger the full cost of the ticket
d.
Give the passenger a free ticket anywhere in the United States to be used at a later time
8. Prior to take-off, two stewardesses overheard two passengers discussing how to hijack the flight. The
stewardesses informed the pilot. Which of the following best describes the authority of the pilot?
a.
The pilot can remove the passengers from the flight.
b.
The pilot cannot remove the passengers from the flight unless weapons are found in their
possession.
c.
The pilot cannot remove the passengers but can call the police to have them remove the
passengers.
d.
The pilot can remove the passengers but only if they fail a lie detector test.
9. A travel agent may be liable for all but which of the following?
a.
Providing to a customer inaccurate information about travel plans
b.
Injuries caused by a drunk driver to a traveler crossing the street while on vacation
c.
Breaching a contract with a customer
d.
Failing to investigate the appropriateness of travel services recommended to a customer by
the travel agent
10. When an airline overbooks and passengers must be bumped, which of the following is the correct
order for determining which passengers are bumped?
a.
Volunteers, followed by the last to arrive at the gate
b.
The airline’s priority rules, followed by the last to arrive at the gate
c.
Volunteers, followed by the airline’s priority rules
d.
The last to arrive at the gate followed by volunteers
11. Which of the following is true about disclaimers?
a.
Courts do not look favorably on them due to public policy concerns, so they are often
invalidated.
b.
They are valid and enforceable.
c.
They are valid and enforceable only between travel agents and travel wholesalers.
d.
They are not favorable because they are usually not in writing.
12. Which of the following is not true about overbooking by car rental companies?
a.
It is a crime.
b.
Some states impose fines for overbooking.
c.
Many car rental companies will voluntarily compensate a traveler whose car reservations
could not be filled and who rented from another company at a higher price.
d.
The unavailability of a reserved car constitutes a breach of contract.
13. Which of the following would constitute negligent entrustment of a rental car by a car rental company?
a.
Renting to someone under age 21
b.
Renting to someone who is visibly intoxicated
c.
Renting to someone without proper identification
d.
Renting to someone accompanied by three friends, all of whom would be passengers in the
car
14. Heather rented a car from a travel agent. Even though she was the only authorized driver listed on the
contract, she allowed her friend Ashley to drive the car. Ashley was in an accident caused by her
negligence. Heather suffered injuries, and the car was damaged. Which of the following is true?
a.
Heather will be liable to the rental company for the damages to the car.
b.
An implied term in the contract between Heather and the car rental company obligated the
company to cover the losses resulting from Ashley’s accident.
c.
The rental company’s insurance will cover expenses associated with Heather’s injuries but
not the cost to repair the car.
d.
The car rental company’s insurance will cover the cost of the repair to the rental car but
not the expenses associated with Heather’s injuries.
1. An agency relationship consists of two parties, a principal and an independent contractor.
2. Where an agent acts outside the bounds of delegated authority, the principal is not bound.
3. Tariffs are developed by the airlines and must be approved by the Department of Transportation.
4. The Warsaw Convention applies to both foreign and domestic flights.
5. An airline cannot discriminate against a person because of a disability, but an airline can refuse to
transport an individual who is unable to meet certain minimum requirements defined by law and aimed
at ensuring the safety of that person and others.
6. Cancellation of an airline flight due to adverse weather conditions will result in liability by the airline
for breach of contract to those persons who had reservations on the flight.
7. An airline pilot has considerable authority to remove travelers who are suspected of being hijackers.
8. A travel agent recommended a particular hotel to a client who uses a wheelchair for mobility.
Unknown to the travel agent, the hotel did not have handicapped-accessible rooms. A convention was
being held in the city of destination, and so no other rooms were available. The customer was forced to
end the vacation early and return home. True or false: The travel agent will be held liable to the
customer for the expense incurred during the trip.
9. A traveler who purchases discount tickets from a travel agent has fewer rights than a person who
purchases full-price tickets.
10. A travel agent will be liable to a customer if the travel agent fails to confirm hotel reservations and,
when the customer arrives, no rooms are available.
11. The practice of overbooking by an airline is illegal and will subject the airline to criminal prosecution.
12. Negligent entrustment of a car includes renting it to someone who is from France and has a valid
French driving license but not one from the United States.
1. ____________________ is a relationship in which one person acts for or represents another based on
authority voluntarily given.
2. A ____________________ is a rule or condition of air travel that binds the airline and passengers.
3. ___________________________________ is a forum that encourages people with a legal claim to act
as their own advocates in court without a lawyer.
4. The ______________________________ is an international treaty that sets the limits of airline’s
liability for lost, stolen, damaged, or misdelivered goods.
5. The 1992 act that protects the rights of handicapped persons is called the
___________________________________ Act.
6. In a case where a travel agent is held liable to a customer for the acts of a travel wholesaler, the travel
agent can seek compensation for the money it paid to the traveler by
______________________________.
7. A traveler with an airline reservation who is bumped due to overbooking is entitled to damages based
on ______________________________.
8. A type of insurance that covers a travel agent’s failure to satisfy its obligation to a customer is called
________________________________________.
1. In lieu of disclaimers, travel agents are well advised to include in their contracts with customers
____________________________________________________________________.
2. In an overbooking situation, an airline can usually avoid liability for punitive damages by
____________________________________________________________.
3. Two types of damages a court may award to a traveler when the travel agent breaches a duty to use due
diligence in arranging the trip include
____________________________________________________________,
____________________________________________________________.
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