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

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 外國在台非營利組織或無營運收入之分支機構、辦事處或聯絡處的辦公費用, 包括派駐人員薪資但不含本地雇員薪資

Review : Answer the definition Unlimited Company(無限公司) 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(有限公司) 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.

Review : Answer the definition Unlimited company with limited liability shareholders(兩合公司) 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.

Review : Answer the definition Company Limited by shares(股份有限公司) 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.

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.

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

Principles of Hospitality Law Restaurants Bars Hotels, inns, B & B’s, motels Travel agents Airlines

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

Sources of Law Constitutional law Delegated powers—expressly allocated to the federal government in the Constitution Interstate commerce—business affecting more than one state Legislative process—method by which Congress adopts laws

Procedures Check co name setup http://gcis.nat.gov.tw/main/indexC.jsp Apply forms submitted to “Competent authority” Corporate charter(公司章程) Business areas(營業項目) Preopening office(開立籌備處帳戶,大章) Reserved capital (公司準備金) Certificate of profit seeking enterprise(公司執照)

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?

Different co advantages—copy version Sole propriety Partnership Co unlimited Co limited

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

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

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 decisis—process of following earlier cases gives some uniformity to the law

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

Categories of Law Constitution law, administrative law, International law, criminal law substantive law 實體法 Public law公法 Private law私法 adjective law 程序法 Civil procedure act, criminal procedure code, administrative procedure act Company Act (公司法) Civil law, business law Negotiable Instruments Act (票據法) Maritime Act (海商法) Insurance Act (保險法) *Securities and Exchange Law 證券交易法

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

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

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 judges—also review decisions of other judges

Judges roles

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

Civil and Criminal Law (continued) Objectives Civil lawsuit—compensation for an injury Criminal lawsuit—punishment of the wrongdoer

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 …”

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

Examples of Civil Law (continued) Torts Negligence—breach of a legal duty to act reasonably Trademark infringement—use of another company’s business name or logo without permission Fraud—intentionally untruthful statement made to induce reliance by another person

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

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

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 defendant’s wrongful acts are aggravated by violence, malice, fraud, or a similar egregious wrong

Examples of Crimes Theft of services—using services (e.g., hotel room) without paying and with intent to avoid payment Assault—intentionally putting someone in fear of harmful physical contact Battery—causing harmful physical contact to a person

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

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

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 facts—circumstances that gave rise to the lawsuit The issue—legal question that the parties want resolved The judge’s decision—judge’s response to the issue The reasoning supporting the decision—basis and rationale for the decision

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

Review Quesitons P.14 3. 4. 5. 6. 7. 9. 10. 12. 13.

Discussion Questions P.14 2. 4.

Application Questions P.15 Assignment—find the solution Law issue 1 Law issue 2