978-1418051914 Chapter 16 Solution Manual

Unlock access to all the studying documents.

View Full Document

❊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 to offer specified services.

■In most states the spa itself must be licensed.

■Additionally, many of the services offered by a spa require service providers, including mani-

curists, facialists, specialty practitioners, masseuses, and cosmetologists (one who provides hair,

nail, and skin treatments), that the state requires to be licensed.

■Providing services without the necessary license is illegal.

■Potential penalties for the spa and hotel include fines and negative publicity.

❊Sanitation and nails.

■Most spas offer manicures (treatment of fingernails) and pedicures (treatment of toenails).

■The spa should ensure the manicure tables and pedicure facilities are scrubbed, all tools are ster-

ilized after each use, emery boards and toe separators are used on one customer only, the man-

icurist/pedicurist washes her hands between each client, and other sanitary rules are strictly

followed.

❊Wet and slippery floors.

■Spas often include shower facilities, hot tubs, and/or a pool.

■Customers will inevitably track water onto the floors, having failed to fully dry off after use of

the water facilities.

❊Effect of liability waivers.

■To reduce liability spas often require their customers to sign a waiver of liability, which is a doc-

ument stating that customers agree to waive their right to sue the spa and hotel if they are in-

jured while at the facility.

■As a general rule, the law does not like to release a party from liability for wrongdoing.

❊Property stolen from locker.

■Spa patrons usually change clothes prior their treatments or using the sports facilities.

■The spa customarily provides a locker for the visitor’s use. Often the lock for the locker is also

provided by the club.

❊Massages.

■The process of administering a massage necessarily involves close personal contact between the

masseur/masseuse and the customer. Often the latter is minimally clothed or draped only in a

towel to intensify the benefits of the procedure.

■This environment can lead to claims of sexual abuse or rape.

■To avoid this type of liability spa management should perform criminal background checks on

all its workers and verify credentials including necessary licenses.

■Ongoing management likewise is critical.

❊Tanning booths.

■Spas sometimes include tanning booths.

■This equipment should be inspected regularly to ensure proper operation. Apparatus that mal-

functions due to the fault of the spa can result in injuries and liability.

M. Answers to Case Example Questions

16-1-1. How big a role did the casino emergency alarm system play in the court’s decision?

A casino, like restaurants and hotels, must act reasonably to protect the well-being of patrons.

The casino’s alarm system in this case played a very significant role in the court’s determina-

194 ■Chapter 16

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 194

N. Answers to End-of-Chapter Questions

❊Review Questions

1. What defenses are available to a gambler who has incurred a sizable loss while betting

on credit?

The relationship is contractual between a casino that extends credit and the gambler who

Specialized Destinations: Casinos, Theme Parks, and Spas ■195

Key Terms

Admission discounts Promotional admission rates

Assumption of risk Legal theory that the partici-

Card counter Someone who keeps track of the

Compacts Written agreements between a state and

Crowd control When an establishment receives a

chance.

Gambling commission Established in states with le-

Indian Gaming Regulatory Act Law passed by

Jones Act A federal maritime law that enables

Liability waiver A document stating that cus-

Maritime laws Federal laws that affect events occur-

Pari-mutuel betting A betting system in which

Riverboat casinos In some states, a riverboat lo-

Sovereign authority Entity that is separate from

Spa An establishment that provides a variety of serv-

ices intended to promote relaxation, relieve stress,

and enhance physical appearance.

who arrived quickly. The emergency alarm system thus enabled the facility to respond rapidly

to the medical emergency.

16-1-2. Why do the Restatement of Torts and the courts impose a duty on the casino to provide

first aid to a patron in distress?

Casinos encourage the public to patronize their facilities. Casinos can anticipate that, with the

presence of many people, some will inevitably experience injury or illness while on the prem-

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 195

2. What is a pathological gambler?

3. What duty of care is owed by a casino to its patrons?

A casino owes a duty to act reasonably to protect its patrons from harm. Casinos are not

4. What is the Jones Act and what is its relevance to casinos?

The Jones Act is a maritime law that applies to ships on the waterways of the United States.

5. What is “probable cause” and how does it apply to the tort of false imprisonment?

Probable cause refers to evidence sufficient to lead a reasonable person to conclude that some-

6. What led to the proliferation of riverboat casinos?

7. What spurred the development of casinos on Native American reservations?

The growth of casinos on Native American reservations resulted from two factors. First, the laws

8. What is IGRA?

9. What is the meaning of the term sovereign authority?

Sovereign authority means that tribes exercise control over their members and territories.

10. What laws regulate online gambling?

Unlike land-based casinos, online gambling is not heavily regulated. Operators of online casi-

❊Discussion Questions

1. Describe several criminal schemes to which casinos may be vulnerable. How can casinos

protect themselves?

Criminal schemes against which a casino should attempt to protect itself and its patrons in-

196 ■Chapter 16

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 196

2. What determines whether the Jones Act applies to a water-based casino? What attributes

of the casino will be considered by a court in determining whether the Jones Act applies?

For the Jones Act to apply, a boat must qualify as a “vessel;” that is, a ship that regularly nav-

igates waterways. To determine if a boat qualifies, the courts will look at the following:

3. What factors will a court consider when deciding whether the name of a casino consti-

tutes trademark infringement?

In determining whether a trademark infringement exists, a court will consider the following

factors: (1) the degree of similarity between the existing trademark and the allegedly in-

4. In Le Moine v. Empress River Casino, Corp., concerning an allegation of copyright in-

fringement relating to advertising adopted by the Empress Riverboat Casino, both the

plaintiff’s proposed advertising campaign and the one adopted by Empress represented

the casino pictorially with a slot machine. Why was this not significant evidence of copy-

right infringement?

To receive copyright protection, a work must evidence creativity. The court in Le Moine v. Em-

press River Casino, Corp. noted that only a small number of pictorial options exist with which

5. Why have the courts not applied dram shop liability to gambling debts?

Extension of dram shop liability to gambling debts would present difficult questions of

proximate cause since sober gamblers can play well and still suffer significant losses; intoxi-

cated gamblers can win big, and under the prevailing rules and house odds, the house will

win more times than bettors. Further, many casino games require no skill and thus a per-

6. Explain the hostile work environment theory of sexual harassment and identify why it

is illegal.

“Hostile work environment” refers to a type of sexual harassment where actions and/or

7. What must a Native American tribe wishing to initiate gambling do to comply with the

IGRA? What are the consequences if it offers gaming without complying with the Act?

To comply with IGRA, four requirements are necessary: (1) The gambling must be author-

Specialized Destinations: Casinos, Theme Parks, and Spas ■197

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 197

Failure to comply can result in government seizure of gambling devices, requiring a shut-

Note: To prevent states from refusing to negotiate a treaty or from negotiating in bad

faith, IGRA includes a procedure authorizing the tribe to sue a state to mandate bargaining.

In 1996 the United States Supreme Court held, “The Eleventh Amendment [which grants

states sovereign immunity] prevents congressional authorization of suits by private parties

against unconsenting states.” Seminole Tribe of Florida v. Florida, 517 U.S. 44, 116 S.Ct.

8. What do gambling commissions regulate and why?

Gambling commissions resolve disputes involving gaming debts and alleged winnings

and have jurisdiction to the exclusion of the courts. Their responsibilities include the

following.

■Processing gambling license applications, including financial background checks and criminal

history checks.

9. What licenses are needed to operate a spa?

In most states, the spa itself must be licensed. Additionally, many of the services offered by a

10. What are the consequences of failing to secure the necessary licenses?

11. Why is sanitation particularly important in the operation of a spa?

12. What sanitation precautions should spa management take?

The spa should ensure that manicure tables and pedicure facilities are scrubbed, all tools uti-

198 ■Chapter 16

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 198

13. What precautions should spa management take to avoid having customers trip on wet

floors?

14. What is a waiver of liability?

What is the relationship between a waiver of liability and assumption of risk?

15. What type of injury will be covered by a waiver of liability? What type of injury will a

waiver of liability not cover?

An injury that would be covered by a waiver of liability would be one in which the injury re-

16. For spa services during which the patron is scantily clad (massage, various bodily treat-

ments, tanning, etc.), what action can spa management take to reduce the opportunity

for sexual abuse?

What is the goal when a theme park develops crowd control procedures?

17. How can theme park managers help ensure that ride operators are enforcing height

restrictions?

18. How might theme parks manage the large lines that form at prime times while patrons

are waiting to gain admission to the park?

19. A theme park visitor is nauseous after exiting the roller coaster. If he sues the park,

should he be successful? Why or why not?

20. What is assumption of risk?

21. What is the effect of assumption of risk on a theme park visitor’s right to sue?

The doctrine of assumption of risk, also known as violenti non fit injuria, means that a plain-

22. Why is it important to enforce minimum height requirements for rides?

23. Why do some states hold theme park operators liable for the serious crime of manslaugh-

ter if they violate regulations applicable to amusement rides and death to a patron results?

Some states hold theme park operators liable for the serious crime of manslaughter when they

violate regulations governing amusement rides because of the dangerous nature of some

amusement rides. Such regulations help lessen the likelihood of injury.

Specialized Destinations: Casinos, Theme Parks, and Spas ■199

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 199

25. Why is it important to state on a season pass all the terms, conditions, and restrictions

associated with it?

26. Can a theme park offer local residents a discount on the admission fee? Why or why not?

Yes, provided the parameters for receiving the discount are not discriminatory in nature. This

❊Application Questions

1. Latasha was a security employee at a casino. Her boss, who was male, often made

demeaning comments to her related to her gender. She felt humiliated and distressed as

a result. Latasha filed a complaint with the personnel office of the casino.

A. What legal wrong did Latasha’s boss commit?

B. What action should the casino take to limit its liability?

The casino should treat the complaining employee respectfully, investigate the complaint

2. Eduardo was gambling at a casino. Luck was with him and he won almost $10,000.

What security precautions should the casino have in effect to protect Eduardo and other

customers from criminal activity?

Casinos must exercise reasonable care for the safety and protection of their customers.

3. Barry was a security guard at a casino. He took a 15-minute break in the middle of his

shift. When he returned, he noticed a player at a blackjack table who had not been there

when he left. Barry also noticed the player had a large number of betting chips. Barry

suspected foul play and detained the player. While Barry undertook further investiga-

tion he later learned that the player had done nothing wrong. The player then sued the

casino for false imprisonment. Would the casino be able to utilize the defense of prob-

able cause? Why or why not?

In these facts the casino would not be able to utilize the defense of probable cause. That term

means that sufficient evidence exists to lead a reasonable person to conclude that the individ-

ual arrested was committing a crime. Probable cause is distinguished from a whim or guess.

In the circumstances described in the question, Barry had no reasonable basis for believing the

200 ■Chapter 16

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 200

4. Sarina was playing the slot machines at a casino for several hours. A waitress periodi-

cally approached her and offered her free drinks. After drinking 10 beers she became

angry and violent when the player next to her won a major jackpot. Security was called

and she was taken to the security office. Security personnel determined that she was very

intoxicated. What duty does the casino owe to Sarina under these circumstances?

The legal obligation to exercise reasonable care is imposed on the casino when ejecting an

inebriated customer. This legal duty applies likewise to hotels and restaurants. Casinos must

Specialized Destinations: Casinos, Theme Parks, and Spas ■201

51934_16_Ch16_p187-201.qxd 7/6/07 10:41 PM Page 201