1. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 1 Introduction to Contemporary Hospitality Law

2. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

3. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. What Is Law? (continued)  Common denominator to all definitions: Law consists of rules that require people to meet certain standards of conduct and are enforceable in court

4. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Principles of Hospitality Law  Restaurants  Bars  Hotels, inns, B & B’s, motels  Travel agents  Airlines

5. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Principles of Hospitality Law (continued)  Casinos  Amusement parks  Theaters  Night clubs  Sports facilities

6. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

7. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

8. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

9. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

10. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Sources of Law (continued)  To some extent statutes and common law are intertwined  Sometimes statutes are adopted to modify common law

11. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

12. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

13. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

14. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Civil and Criminal Law  Civil law—wrong done to an individual  Criminal law—wrong considered to be inflicted on society

15. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Civil and Criminal Law (continued)  Objectives Civil lawsuit—compensation for an injury Criminal lawsuit—punishment of the wrongdoer

16. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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 …”

17. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Examples of Civil Law  Contract An agreement between two or more parties that is enforceable in court

18. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

19. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

20. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

21. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. 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

22. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Penalties and Remedies in Criminal Cases  Community service  Fines  Probation—criminal offenders remain out of jail, supervised by probation officer  Death in some states

23. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. How to Read a Case  Judges’ written decisions are called cases  Books in which cases are published are called case books

24. COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. How to Read a Case (continued)  Identify four elements as you read the case 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