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Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 1 Introduction to Contemporary Hospitality Law.

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Presentation on theme: "Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 1 Introduction to Contemporary Hospitality Law."— Presentation transcript:

1 Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 1 Introduction to Contemporary Hospitality Law

2 Review : Answer the definition Liaison communication or cooperation that facilitates a close working relationship between people or organizations: a person who acts as a link to assist communication or cooperation between groups of people,

3 Review : Answer the definition Unlimited Company( ) which term denotes a company organized by two or more shareholders who bear unlimited joint and several liabilities for discharge of the obligations of the company. Limited Company( ) which term denotes a company organized by one or more shareholders, with each shareholder being liable for the company in an amount limited to the amount contributed by him.

4 Review : Answer the definition Unlimited company with limited liability shareholders( ) which term denotes a company organized by one or more shareholders of unlimited liability and one or more shareholders of limited liability; among them the shareholder(s) with unlimited liability shall bear unlimited joint liability for the obligations of the company, while each of the shareholders with limited liability shall be held liable for the obligations of the company only in respect of the amount of capital contributed by him.

5 Review : Answer the definition Company Limited by shares( ) which term denotes a company organized by two or more or one government or corporate shareholder, with the total capital of the company being divided into shares and each shareholder being liable for the company in an amount equal to the total value of shares subscribed by him. The name of a company shall indicate the class to which it belongs.

6 Review : Answer the definition Civil Air Transport Enterprise means an undertaking directly engaging in the transportation by aircraft of passengers, cargo and mail for compensation or hire.

7 Key Terms Chapter 1 P.13 Compensatory damages Punitive damages Precedents Case decision Stare decisis Theft of services (from New York)

8 Principles of Hospitality Law Restaurants Bars Hotels, inns, B & Bs, motels Travel agents Airlines

9 Principles of Hospitality Law (continued) Casinos Amusement parks Theaters Night clubs Sports facilities

10 Sources of Law Constitutional law Delegated powersexpressly allocated to the federal government in the Constitution Interstate commercebusiness affecting more than one state Legislative processmethod by which Congress adopts laws

11 Procedures Check co name setup Apply forms submitted to Competent authorityCompetent authority Corporate charter( ) Business areas( ) Preopening office(, ) Reserved capital ( ) Certificate of profit seeking enterprise( )

12 Why do we need to understand? Your right and obligation to check the information of a co when you want to work and dedicate in this co. Do companies follow the rule to run the business? What kind of company do you like to dedicate to?

13 Different co advantagescopy version Sole propriety Partnership Co unlimited Co limited

14 Sources of Law (continued) Statutory law Law promulgated by legislators and generally agreed to by the executive (president, governor, or mayor) Statutelaw adopted by federal or state legislature Ordinancelaw adopted by local legislature

15 Sources of Law (continued) Common law Consists of legal rules that evolved from decisions of judges and from custom and practice Gradually modified as habits were modified, as new inventions created new wants and conveniences, and as new methods of doing business developed

16 Sources of Law (continued) Precedents Case decision interpretation of the law applied by a judge to a set of facts in a given case Precedent case decision becomes precedent Stare decisisprocess of following earlier cases gives some uniformity to the law

17 Sources of Law (continued) To some extent statutes and common law are intertwined Ex: Civil law and business law in Taiwan Sometimes statutes are adopted to modify common law

18 Categories of Law substantive law Public law Private law adjective law Civil procedure act, criminal procedure code, administrative procedure act 18 Constitution law, administrative law, International law, criminal law Civil law, business law Company Act ( ) Negotiable Instruments Act ( ) Maritime Act ( ) Insurance Act ( ) *Securities and Exchange Law

19 Administrative Law Refers to laws that define powers, limitations, and procedures of administrative agencies Administrative agencygovernmental subdivision charged with administering legislation that applies to a particular industry Laws adopted by administrative agencies are called regulations

20 Administrative Law (continued) Food and Drug Administrationoversees food and pharmaceutical industries Federal Communications Commission oversees the communications/broadcasting industry Consumer Product Safety Commission polices the safety of consumer products

21 Role of the Judge Makes the law in cases where no precedent or statute exists Interprets the law in cases where a statute applies Appellate judgesalso review decisions of other judges

22 Judges roles

23 Civil and Criminal Law Civil lawwrong done to an individual Criminal lawwrong considered to be inflicted on society

24 Civil and Criminal Law (continued) Objectives Civil lawsuitcompensation for an injury Criminal lawsuitpunishment of the wrongdoer

25 Civil and Criminal Law (continued) Civil lawsuit Person who commences the lawsuit is the injured person Criminal lawsuit Person who undertakes the lawsuit is society-at-large, usually referred to as The State of … or The People of the State of … or The Commonwealth of …

26 Examples of Civil Law Contract An agreement between two or more parties that is enforceable in court

27 Examples of Civil Law (continued) Torts Negligencebreach of a legal duty to act reasonably Trademark infringementuse of another companys business name or logo without permission Fraudintentionally untruthful statement made to induce reliance by another person

28 Some questions (1) (2) (4) (5)

29 Remedies in Civil Cases Remedy sought by the injured party in a civil case is damages (money) Compensatory damagesmoney given to compensate for injuries Includes out-of-pocket expenses Medical bills Lost wages Pain and suffering Physical distress or mental anguish Loss of enjoyment of life

30 Remedies in Civil Cases (continued) Punitive damages Money in excess of compensatory damages Punish or make an example of the defendant Awarded only in cases where defendants wrongful acts are aggravated by violence, malice, fraud, or a similar egregious wrong

31 Examples of Crimes Theft of servicesusing services (e.g., hotel room) without paying and with intent to avoid payment Assaultintentionally putting someone in fear of harmful physical contact Batterycausing harmful physical contact to a person

32 Penalties and Remedies in Criminal Cases Community service Fines Probationcriminal offenders remain out of jail, supervised by probation officer Death in some states

33 How to Read a Case Judges written decisions are called cases Books in which cases are published are called case books

34 How to Read a Case (continued)--- Important: How do you write a case in law? Identify four elements as you read the case P.12 The factscircumstances that gave rise to the lawsuit The issuelegal question that the parties want resolved The judges decisionjudges response to the issue The reasoning supporting the decisionbasis and rationale for the decision

35 Case Example 1-1 P.12 Fact Issue Decision Ruling

36 Review Quesitons P

37 Discussion Questions P

38 Application Questions P.15 Assignmentfind the solution Law issue 1 Law issue 2


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