Click to edit Master title style Legal Environment in the Hospitality Industry Review from First Exam

Click to edit Master title style Chapter 1 Introduction to Contemporary Hospitality Law Many slides Copyright © 2008 by Delmar Learning Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition

What Is Law? A body of rules to which people must conform their conduct A form of social control A set of rules used by judges in deciding disputes

Sources of Law Constitutional law

Sources of Law Statutory law (cont’d)

Sources of Law Common law (cont’d)

Sources of Law Precedents –Case decision –Precedent –Stare decisis (cont’d)

Administrative Law Refers to laws that define powers, limitations, and procedures of administrative agencies

Civil and Criminal Law Civil law—wrong done to an individual Criminal law—wrong considered to be inflicted on society

Civil and Criminal Law Objectives –Civil lawsuit—compensation for an injury –Criminal lawsuit—punishment of the wrongdoer (cont’d)

Remedies in Civil Cases Remedy sought by the injured party in a civil case is damages (money) –Compensatory damages –Punitive Damages

Click to edit Master title style Chapter 2 Legal Procedures: Journey of a Case through the Courts Many slides Copyright © 2008 by Delmar Learning Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition

Introduction Claim –Demand for remedy, usually money, to compensate for a perceived wrong (cont’d)

Parties and Proof Plaintiff—party who initiates the lawsuit Defendant—party being sued

Parties and Proof Plaintiff must prove that: –Defendant violated the law –Plaintiff suffered an injury or loss –Cause of plaintiff’s injury or loss was the defendant’s violation of the law (cont’d)

Commencing the Lawsuit The lawsuit is begun by serving or filing a complaint and a summons

Pleadings Complaint Answer Reply

Pretrial Procedure Discovery—process by which each side obtains evidence known to the other side

Pretrial Procedure Discovery may include: –Written questions (interrogatories) –Oral questions (depositions) (cont’d)

Alternative Dispute Resolution Arbitration vs. Mediation

Click to edit Master title style Chapter 3 Civil Rights and Hospitality Business Many slides Copyright © 2008 by Delmar Learning Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition

Introduction Discrimination—the act of treating some people different from and less favorably than others

Outlaws discrimination on basis of: –Race –Color –Religion –National origin Civil Rights Act of 1964

Classes still unprotected: –Marital status –Disability (now protected by Americans with Disabilities Act) –Sexual orientation

Segregate To separate a group or individual on any basis, but especially by race, color, religion or national origin Accommodating Customers

Responsibility to Non-customers Invitees An individual who is on a property with the expressed or implied consent of the owner

Responsibility to Non-customers Trespassers An unauthorized individual on the property Lower duty of care Different from a wandering guest (cont’d)

The Act provides limited relief –Money is not recoverable –Injunctive relief –Reasonable attorney’s fees Relief

Bed-and-breakfast –Five or fewer rooms and occupied by the proprietor Private clubs –Not open to the public –Not easy to obtain Exempt Establishments

Prohibits places of accommodation from discrimination of the basis of disability Americans with Disabilities Act

Disability is defined as: –A physical or mental impairment that substantially limits one or more of the major life activities of the disabled person

Two types of lawsuits can be brought under the Disabilities Act –Private action—by individuals –Lawsuit by the Department of Justice Legal Action Directed at Noncompliance

Click to edit Master title style Chapter 4 Contract Law and the Hospitality Business Many slides Copyright © 2008 by Delmar Learning Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition

Vocabulary Contract An agreement or promise made between two or more parties that courts will enforce

Vocabulary Enforceable contract A contract recognized as valid by the courts and subject to the courts’ ability to compel compliance with its terms

Introduction to Contracts Oral Contracts Written Contract

Legally valid Age requirement Mental capacity to understand terms Breaking the law

An enforceable contract Offer Acceptance Consideration No defenses to formation

Mutual Assent In general, one party must accept the other’s offer Ask, did words or conduct manifest a present intention to contract?

The Offer Offerer—the person who makes an offer Offeree—person to whom the offer is made

Termination of an offer An offer may be accepted as long as it has not been terminated

Type of Contract Bilateral Requires an exchange of promises Unilateral Requires the exchange of an act for a promise

The acceptance Unconditional agreement to precise terms and conditions of an offer (mirror rule)

Consideration (without there is no contract ) The payment (value) exchanged for the promise(s) contained in a contract Bargained for exchange Legal value

Defenses to formation Absence of mutual assent Mistake (mutual and unilateral) Misrepresentation Absence of consideration Lack of capacity Unconscionably

Statute of Frauds Certain agreements must be in writing to be enforced - MYLEGS Marriage Year Land Executor Goods Surety

Exculpatory Clauses Can be added to a contract May or may not be accepted by the courts

Parol Evidence Rule Prevents the parties from modifying a written contract using evidence of oral agreements made prior to signing the written contract Does not apply to agreements made after a contract is signed

Chapter 5 Review

Negligence The breach of a legal duty to act reasonably that is the direct (proximate) cause of injury to another Nonlegal language—carelessness that causes harm

4 Elements of a Negligence Case The existence of a legal duty to act reasonably owed by the defendant to the plaintiff A breach of that duty Injury to the plaintiff Proximate cause

Res Ipsa Loquitur Literally means “the thing speaks for itself”

Attractive Nuisance Doctrine There is an exception to duty of care rule regarding duty of care for child trespassers

Negligence Per Se Doctrine Conduct that violates a law or ordinance designed to protect the safety of the pubic

Respondeat Superior Employer is vicariously (through a substitute) liable for the employee’s wrongful conduct

Chapter 8 Review

Absolute Liability for Guests’ Goods Three exceptions: –Loss caused by an act of God –Loss caused by a public enemy –Negligence by the guest

Limited Liability - Modern Limitations to the Absolute Liability Rule If the innkeeper deviates from requirements of the statute, the innkeeper will have unlimited liability

Liability for Guest Property Bailment

Bailment Definitions Bailor Bailee

Property of Unknown Ownership Mislaid Property Lost Property Abandoned Property

Chapter 9 Review

Right to Exclude Nonguests Public accommodations extend an implied invitation to all, including nonguests, to enter their facility Public’s presence on the premises does not constitute trespass

Entering a Guest’s Room Innkeeper may enter only for reasonable purposes

Defamation Defamation—tort of making false and demeaning statements about a person to a third person

Verbal Abuse Slander—oral defamatory statements

Written Abuse Libel—written defamatory statements

Innkeeper’s Lien Lien—security interest in the property of someone who owes money Section , Florida Statutes, operator’s writ of distress

Click to edit Master title style Chapter 10 Guests’ Rights Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition

Guests’ Rights Right to occupy hotel rooms without disruption Right to privacy in guest room, including right to restrict access Right to be treated respectfully

Guests’ Rights (con’t) Right to be free from false arrest Right to be free from credit card fraud Right to be informed of fees and charges Right to have hotel employees process guests’ mail properly

Search Warrant Order from a judge commanding a police officer to search a designated place for evidence of criminal activity

Search Warrant (con’t) Probable cause—facts sufficient for a reasonably prudent person to believe that evidence of a crime is located in the place the police want to search

Search Warrant (con’t) Exclusionary rule—evidence obtained in a warrantless search will not be admissible in court

Consent to Search The guest gives permission for the police to search the room Exception to the requirement that police obtain a search warrant

Effect of Termination of Occupancy No privacy rights apply

Click to edit Master title style Chapter 11 Liability and the Sale of Food Many slides Copyright © 2008 by Delmar Learning Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition

Serving Food Wholesome food –Food that is safe for humans to consume

Serving Food Warranty –An assurance that a statement made or facts expressed in a contract are correct as stated or expressed

Serving Food (cont’d) Merchantable –Suitable for buying and selling Food borne Illness –Sickness caused by consuming unsafe foods or beverages

Serving Food UCC addresses the responsibility for proper food service, UCC Section “where the seller…has reason to know…that the buyer is relying on the seller’s skill or judgment to select or furnish suitable goods, there is…an implied warranty that the goods shall be fit for such purpose” (cont’d)

Warrant of Merchantability Merchantable means goods are fit for ordinary purpose and are at least of average quality

Merchantable Food Must be fit for human consumption, will not make people ill who eat it Does not have to be nutritional or taste good, just eatable

Negligence An injured diner claims the restaurant was careless while preparing the food

Truth-in-Menu Concerns Truth-in-Menu –The collective name given to laws and regulations implemented to ensure accuracy in menu wording

Alcoholic Beverage Service Depressant –A substance that lowers the rates of vital body activities Alcoholic content similar in –12 ounce beer –5 ounce table wine –1 ½ ounces spirits in mixed drink

Alcoholic Beverage Service Blood Alcohol Level (BAL) –A percent measurement of the concentration level of alcohol in the bloodstream –.08 is considered the legal limit for a person to operate a vehicle (cont’d)

Alcoholic Beverage Service Intoxication (Legal) –The point at which an individual’s BAL equals or exceeds the standard set by the state (cont’d)

Third Party Liability That the second party in an alcohol transaction is liable for the acts of the first party and also for any harm suffered by a third party as a result of the first party’s actions

Dram Shop Liability Dram Shop –A name given to a variety of state laws establishing a liquor licensee’s third party liability