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Final Exam Study Guide

by: Matthew Yang

Final Exam Study Guide HFT3603

Marketplace > University of Central Florida > HFT3603 > Final Exam Study Guide
Matthew Yang
University of Central Florida
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The final covers Chapter 07, 08, 09, 10, 11, 12, 14. There are several definitions and important key concepts that will need to know in order to be successful on the exam.
Hospitality Law
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This 16 page Study Guide was uploaded by Matthew Yang on Tuesday May 10, 2016. The Study Guide belongs to HFT3603 at University of Central Florida taught by in Fall 2015. Since its upload, it has received 20 views.

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Date Created: 05/10/16
Chapter 7 Guests and Other Patrons P.267 -279 Who Qualifies as a Guest -People are not guests unless they require overnight accommodations -People who register at a hotel for rooms are a guest -People who go to the hotel for a social event is called a guest by law Intent of Parties -The parties exchange the exclusive use of a guest’s room for money -An intention by the parties to enter a contract Registration -Not essential for the relationship to exist Delivery of Property -Delivering luggage to a hotel and transferring possession of the suitcase to the employee -If they tend to not want to be guests -A person not yet decided whether to rent a room may be considered a guest Checking Out -Guest pays his bill and checks out -Continues for a reasonable amount of time Guests’ Illegal Acts Termination of a Guest-Innkeeper Relationship -The contracted time for the room has elapsed and it has not been extended -The bill is not paid when due -Proper notice is given to vacate the hotel -A reasonable amount of time has passed since checkout; -The bill has been settled and paid Landlord-Tenant Relationship -The terms of the contract between the parties -The extent of control or supervision of the patron’s room maintained by the proprietor -The rental rate interval -Length of occupancy -Incidental services offered -Whether the room has cooking facilities -The kind of furnishings in the room and who owns them 1 Distinction between an invitee and a guest **To be a guest, they need to have an overnight accommodation** Chapter 8 Protecting Patrons’ Property P.281 -326 Risks to Property in the Hotel Hotel theft is a problem the hospitality industry has not fully solved. The liability of the innkeeper for losses has lessened over time. Hotel Theft -Not rare -Professionals seeking money, jewels, and credit cards -Offering money in exchange for confidential information -Solutions are tightening security, trained professionals, warning guests to lock their doors, using a safe, and adding cameras, electronic lock devices Keycards and Keys -Punch cards with a magnetic strip -Keycard system over traditional keys -Cross code keys rather than putting actual numbers on them Guests’ Insurance -Sue hotel to collect insurance for loss items -Insurance company will collect money if the hotel was liable for the loss Absolute Liability for Guests’ Goods -Absolute or strict liability was where hotelkeepers were liable for any loss of guests’ property occurring on hotel premises -infra hospitium or within the inn Exceptions to the Absolute Liability Rule -Loss was attributed to what the laws calls an act of God (Natural disasters) -Loss caused by a public enemy (terrorism) -Negligence by the guest Prima Facie Liability Rule – Minority View -States that have adopted this rule are IL, IN, MD, TX, VT, and WA. -prima facie liability rule refers to how an innkeeper cannot prove that it is free from negligence, the innkeeper will be liable for the loss. 2 Limited Liability-Modern Limitations on the Absolute Liability Rule -The hotel must provide a safe for use by guests to protect their property -The hotel must post notices announcing to guests the availability of the safes -The hotel must post notices announcing that the hotel’s liability for guests’ property is limited -The maximum recovery allowed to a guest for stolen or lost property is prescribed by statute and is usually substantially less than the value of the missing property Bailment -Personal property where it involve only moveable, intangible objects -Delivery of possession is possession of the personal property must be transferred to the bailee. -Acceptance of possession by the bailee where the bailee must knowingly accept possession of the bailed property -Bailment agreement is the part of every bailment is an agreement by the bailee to return the bailed goods to the bailor. Bailment is a transfer of possession of personal property from one another with the understanding that the property will be returned. Bailor is the person that gives possession of the property Bailee is the person receiving the possession Effect of Bailment on Liability Bailment for the Sole Benefit of the Bailor -Involves the bailee receiving no benefit from the bailment Bailment for the Sole Benefit of the Bailee -The bailor lends property to the bailee and receives nothing in return Mutual-Benefit Bailment -a bailment for hire where both parties receive some benefit from the bailment. Proof of Negligence in Bailment Cases Items inside Bailed Property Rules Particular to Bailment of Cars -Limiting statutes do not apply to cars -Quasi public-nature -Significance of a car key 3 Liability for a Patron’s Property in a Restaurant, Bar, or Cloakroom -If a bailment does not exist and the patron did not receive a receipt, the bar is not liable. -If the bailment does exist, the hotel or restaurant will be liable if it fails to exercise the necessary care -Constructive bailment is a bailment created by law rather than by the parties agreeing. It requires the bailee to exercise reasonable care of the bailed goods. Checkrooms -A bailment is created between the customer who leaves property with a checkroom attendant and the facility. -The attendant on duty accepts patrons’ garments or other property and issues a receipt as proof that the property was delivered and accepted. Concessionaires -Defined as an independent contractor -They pay the hotel a fee in exchange for the business opportunity Case 8.17 Conboy v. Studio 54 1. the liability of a discotheque when a coat is missing from the coatroom 2. the effect of a sign in a coatroom purporting to limit liability for lost articles 3. the method for calculating damages when a coat is missing Chapter 9 Rights of Innkeepers P.327 -359 Right to Exclude Nonguests -Trespass is a legal wrong consisting of entering or remaining unlawfully on the premises. -Similarly, if a person is loitering, lingering, or hanging out in a restaurant and not making purchases can be asked to leave for trespassing. -Excessive force is unnecessary force; more than is required to defend oneself. -Call the police Refusing Lodging to a Would-Be Guest - **And** The Consequences of Wrongful Refusal Age Selecting Accommodations for a Guest 4 Changing a Guest’s Accommodations Entering a Guest’s Room Evicting a Guest -Failure to Pay the Hotel Bill -Overstaying -Persons of III Repute -Intoxication and Disorderly Conduct -Disorderly Conduct -Contagiously III Guests Breaking House Rules -Has to be non-discriminatory -rational reasonable rules -Where they park -Inappropriate attire Persons without Baggage Business Competitors The Process of Eviction Evicting of a Hotel Tenant Refusing a Diner Statutory Protection for the Hotelkeeper The Innkeeper’s Lien Defrauding the Hotelkeeper or Restaurateur Fraudulent Payment False Arrest Homeless person at the hotel -He is unkempt (probably can refuse him or not) -Smelly or flea-infested 5 Chapter 10 Guests’ Rights P.361-387 Right to Occupy Assigned Room -A guest assigned to a room in a hotel has the right to occupy the room without disruption from the innkeeper. An exception to this rule is where the innkeeper has legal grounds to remove the guest. An innkeeper who wrongfully excludes a guest from the room will be liable to the guest for damages. Right to Privacy in Guest Room -Normal maintenance and repair -Imminent danger -Nonpayment -When requested to enter by the guest -When the rental period has expired and the guest has no basis to believe it has been extended Protection against Illegal Searches -Hiding stolen property -Storing drugs -Harboring a kidnap victim -Committing rape Report by Innkeeper of Illegal Activity -Permitting criminal activity to proceed unabated may endanger other guests in violation of the innkeeper’s duty to exercise reasonable care to protect their safety. Tolerating unlawful conduct may also jeopardize the hotel’s license to carry on business. Search Warrant -An order from a judge commanding a police officer to search a designated place for evidence of criminal activity. -Probable cause consists of facts sufficient for a reasonably prudent person to believe that evidence of a crime is located in the place the police want to search. A suspicion or hunch is not enough. -The exclusionary rule holds that evidence obtained in a warrantless search will not be admissible in court. Warrant Exception Consent to Search -Consent is an exception to the requirement that the police obtain a search warrant. -For the consent to be valid, the person agreeing to the search must have the authority to give consent. Effect of Termination of Occupancy on Privacy Rights -A hotel guest has no reasonable expectation of privacy in a room after the rental period has expired. Warrant Exception-Disturbing the Peace 6 -The innkeeper has a duty to protect guests from interference by others -When faced with conduct by one guest that is disturbing to others, the innkeeper can solicit the assistance of people who can in this circumstance enter a guest’s room without the guest’s permission and without a search warrant. Emergency Situation -An innkeeper is permitted to admit police into a guest’s room is where reasonable grounds exist to believe that the guest is in distress and in need of assistance. If the police see evidence of a crime in plain view while in the room, it is admissible in court against the guest. Room Registered to Another -A person is not a registered guest does not have a right of privacy in a hotel room. A guest’s right to privacy applies only to the room she occupies. -T1). The police entered the room without a warrant and found cocaine. In the resulting action the defendant claimed the illegal drugs should be suppressed. -T2). “No notion of privacy that society respects could arise from defendant’s uninvited takeover of a motel room” Search of Items Mislaid by Guests -The owner’s right to privacy must yield to a reasonable search of the briefcase by the manager to determine the owner. Further, if the innkeeper fails to verify ownership of the briefcase and by mistakes gives it to someone other than the owner, the innkeeper will be liable for breach of its duty as bailee. Unclaimed Lost Property -Many states have statutes that prescribe a procedure for disposing of such items -Failure of the facility to notify the police or deposit the property may constitute a crime Protection against Insults -If the language is beyond abusive and qualifies as outrageous, it may constitute the tort of intentional infliction of emotional stress. -“So extreme in degree, as to go beyond all possible bounds of decency and to be regarded as atrocious and utterly intolerable in a civilized community” -For a successful lawsuit, the plaintiff must have suffered severe or extreme emotional distress. -One of the things that a guest for hire at a public inn has the right to insist upon is respectful and decent treatment at the hands of the innkeeper and his servant, so that is an essential part of the contract, whether express or implied. This right of the guest necessarily implies an obligation on the part of the innkeeper that neither he nor his servants will abuse or insult the guest or indulge in any conduct or speech that may unnecessarily bring upon him physical discomfort or distress of mind. -Intentional infliction of emotional distress is a tort in which the offending conduct must be outrageous or so extreme as to go beyond all possible bounds of decency, and be regarded as atrocious and utterly intolerable in a civilized community. 7 Protection against False Arrest -Neither a hotelkeeper nor a restaurateur is under any duty to prevent the arrest of a guest by police officers that are seemingly acting within their authority. -If the arrest is due to a false statement by the hotel, restaurant, or their agents, the establishment could be liable -False arrest is the unauthorized restraint of a person -A hotel or restaurant also commits the tort of false arrest or imprisonment when it detains a person illegally. -Only if the person actually has committed a crime can the establishment legally detain him. -If, however, the person is detained without reasonable cause or for an unreasonable amount of time or in an unreasonable manner, she is entitled to recover for damages. -This case underscores the principle that a hotel or restaurant cannot with impunity interfere with its patrons’ freedom of movement without good cause. To avoid liability, the hospitality facility needs reasonable grounds to believe the patron has acted illegally. Protection against Credit Card Fraud -Identity theft is obtaining personal financial information about the credit card holder and is illegally using that information for the thief’s economic gain -Unauthorized transactions constitute crimes and may subject the employee to civil liability for fraud as well as criminal persecution for larceny, forgery, and criminal possession of stolen property. The hotel or restaurant employing the wrongdoer may also be liable if it failed to institute procedures designed to prevent this. Rights Concerning Rates and Fees Right to Advance Notice -Guests have a right to know what they are in for at a hotel. -Many states require that rates be posted in each room Right to No Extraneous Fees -Guests have the right not to be charged for services they do not receive. -Hotels should ensure that they do not impose fees for services not actually rendered. If they are going to, it should only be for those who use it. -The hotel can provide an alternative method by including it on the room rate. Telephone Charges -Failure to provide a telephone in the room may violate the innkeeper’s duty to exercise reasonable care to protect guest’s safety and to provide adequate security. -It may be the only source of communication in an emergency situation -In the past, the charges that hotels could impose on guests for phone service were severely restricted by both state and federal regulation. -Most states have eliminated regulations that limited the surcharge that hotels can impose on local and intrastate calls to up revenues. -In some states that have surcharge regulations, innkeepers must follow the rule and not impose fees on the guests who use the phone for other purposes. 8 Proper Handling of Mail, Packages, and Facsimile Correspondence -Guests have a right to have the mail-handled property by the innkeeper. -The hotel may be liable to the intended recipient for negligent handling of the package if it is mistakenly delivered to the wrong person. 1). What a package is received for a guest, a notice is placed in the guest’s room informing him of receipt by the hotel of the package. 2). The “call” light in the guest room is illuminated, alerting the guest to call the front desk. 3). The package is not released unless the person is claiming it exhibits identification. Chapter 11 Liability in the Sale of Food Adulterated Food -Food that causes illness has three possible grounds on which to sue: -Breach of warranty of merchantability -Strict products liability -Negligence Warranty of Merchantability -Uniform Commercial Code (UCC) is a set of rules designed to simplify and modernize the law governing the sale of goods and food. -It imposes, in all contracts for the sale of goods where the seller is a merchant an implied warranty that goods are merchantable -Merchantable means the goods are fit for their ordinary purpose and are at least of average quality. Edible and free from dangerous substances -The warranty renders manufacturers and sellers of food virtual insurers that the food is safe to eat. Merchantable Food -Food, to be merchantable, must be fit for human consumption -Inappropriate objects in food will render it unmerchantable. -Food infected with harmful bacteria or a virus breaches the warranty, as does spoiled as well as undercooked food. Objects in Food Foreign/Natural Test -whether an object found in food constitutes a breach of warranty -a piece of glass is called a foreign object -a chicken bone is not because they are natural to chicken where it does violate the warranty of merchantability. 9 Reasonable Expectation Test -examines whether an object found in food ought to have been anticipated by the consumer -look at cultural and geographical differences Raw shellfish Breach of the warranty Rancid food Spoiled food Adulterated food (drop Windex and stir it) Trend toward the Reasonable Expectation Test Raw Shellfish Other Grounds for Breach of Warranty of Merchantability Class Action Hot Beverages Foodborne Illness Proof Problems Establishing Causation Privity of Contract -a direct contractual relationship was required between the plaintiff and the defendant in a breach of warranty action. Strict Products Liability -To sue in strict products liability, a plaintiff must prove only three elements: -The defendant sold a product in a defective condition, such as food that was unhealthy -The plaintiff was injured -The injury was caused by the defect in the product Statutory Violations Negligence Choice of Action Customers with Allergies Hazard Analysis Critical Control Point System Hand-washing by Food preparers 10 False food claims Truth-in Menu Laws Obesity and Accuracy in Advertising Trans Fats Food Labeling Application to Packaged Foods Application to Restaurants Kosher Foods Relationships between Fast-Food Operations and Hotels Smoking Restrictions Safety Concerns Particular to Food Preparation Food Preparation Risks Associated with Donated Food Chapter 12 Liability in the Sale of Food Alcoholic Beverages and the Hospitality Industry -Restaurants and bars have various goals concerning the sale of alcohol, some of which are conflicting -Restaurants and bars have significant motivation to moderate their promotion of alcohol -Intoxicated persons are frequently belligerent and cause disturbances that interfere with other patrons. License to Sell Liquor -To obtain a license to sell alcohol, a restaurant or bar must apply to the appropriate government agency within the state. -Has not abused liquor before -Has not been convicted of a felony -Otherwise of good character 11 Illegal Sales -Prohibited to people under age 21 -People who are visibly intoxicated -Known habitual drunkards -Great care should be taken to avoid illegal sales Sales to Underage Patrons -A state-issued driver’s license -A state-issued non-driver id card -A military id -A passport Fake identification cards Purchases for Underage Drinkers Sales to People Who are Visibly Intoxicated -illegal -the buyer’s appearance or actions must indicate he is intoxicated -Absent proof that a patron is noticeably intoxicated, service of alcohol to him is not illegal -slurred speech, bloodshot, glassy, watery eyes, flushed face, poor coordination, loud, annoying, overly friendly, aggressive Proving Visible Intoxication -Witnesses who are there -the use of a device that measures the alcohol in a person’s blood (BAC) -Breathalyzer -higher than 0.08 on BAC Sales to Known Habitual Drunkards -Imbibes alcohol and frequently becomes intoxicated Alcohol Vendors’ Liability under Common Law -the cause of the injuries was the consumption and not the sale of alcohol Alcohol Vendors’ Liability Greatly Increases under Dram Shop Acts -Dram Shop Acts imposes liability on a restaurant or bar for certain injuries resulting from illegal sales. Alcohol Vendor’s Liability to the Patron Minority Rule -Allows a wrongfully served patron to sue a licensee for resulting injuries, some-based on particulars of the state’s dram shop law and others based on negligence. 12 Chapter 14 Employment Fair Labor Standards Act -Governs minimum wage laws, child-labor, overtime rules You have to pay employees that work within 40 hours To be paid less than the minimum wage -Tipped employees Minimum Wage -If two businesses are in close proximity, but rather separated by several miles, the outcome may be different. -Whether the units share a common business purpose and whether the activities performed by each unit are related -Operational autonomy -Whether each unit has dedicated employees not shared by the other Overtime Pay Exempt Employees -An employee must pass a salary test and a duties test -Employees paid an hourly wage are nonexempt Executive employees To qualify as an executive employee for the purpose of exemption from overtime pay: -The employee must be compensated on a salary basis -The employee’s primary duty must be managing the business or a department or other business subdivision -The employee must regularly direct the work of at least two full-time employees or their equivalent -The employee must have the authority to hire or fire other employees or have significant input in those decisions Administrative and Professional Employees To qualify for the administrative employee exemption, the employee must satisfy all of the following: -They must be compensated on a salary or fee basis at a rate of at least $455 per week. 13 -They must have a primary duty the performance of office or non-manual work directly related to the management or operations of the employer and the employer’s customers -The employee’s primary duties must have the exercise of discretion and independent judgment To qualify for the professional employee exemption, workers must satisfy the following tests: -They are compensated on a salary or fee basis in a minimum amount of $455 a week -Their primary duty is the performance of work requiring advanced knowledge in a field of science related to the specialized intellectual instruction. Employees that fall into executive employees, administrative and professional employees. Seasonal workers, movie theater workers, Taxi drivers don’t need to be paid time and a half if working over 40+ Hrs. Enforcement of the FLSA -File a claim with the Wage and Hour Division of the US Department of Labor -Commence a lawsuit against the employer seeking damages and attorney fees Family and Medical Leave Act -Employees are to take up to 12 weeks of unpaid leave per year -Birth of child -Foster child -Adopt a child -A sick child -Serious health issues --Employee must have worked for an entire year, about 1250 hours --Pertains to companies with more than 50 employees At-Will Employment Title VII of the Civil Rights Act of 1964 Protected Class: any discrimination based on race, color, religion, gender, or national origin, disability, age, or pregnancy Disparate treatment -the intentional discrimination based on race, color, religion, gender, or national origin, disability, age, or pregnancy 14 Disparate impact -the neutral employment practices that unintentionally result in unequal treatment Equal Employment Opportunity Commission (EEOC) -An agency of the Federal government that is authorized to both develop policy and enforce Title VII mandates against discrimination. Bona fide occupational qualification (BFOQ) -A job qualification that legally discriminates on the basis of race, religion, national origin, or gender: 1). Excluded classes cannot perform the job effectively 2). Such inability is factually supported 3). The job classification is reasonably necessary for the normal operation of the business BFOQ cannot apply to race Examples: -Hooters, Tilted-Kilt -Joe’s Stone Crab loss the case of only hiring men to be servers, not female. BFOQ Elements -The job in issue must require a worker of a particular gender, religion, age, or national origin -Such requirement must be necessary to the essence of the business’ operation Business Necessity -The criterion has an obvious relationship to job performance. Prohibited and Permitted Interview Questions P.529-531 -Prohibited Questions -Permissible Questions Reverse Discrimination Glass Ceiling Affirmative action Racially Hostile Work Environment -Happens via email and text messaging Refusal to hire someone who is not fluent in English -If English is a business necessity, then requiring someone who speaks English is okay. -BOH and Housekeeping positions may not pass the BFOQ statement 15 Sexual harassment -Quid pro quo sexual harassment is any form of unwelcome sexual advances or requests for sexual favors in return for job benefits. Ex: Sleep with me tonight, or you are fired; Sleep with me tonight, and you will get promoted; -Hostile environment is any form of verbal or physical conduct of a sexual nature that creates an intimidating, hostile, of offensive work environment. Employer Liability-Hostile Environment Sexual Harassment -No adverse employment action was taken against the employee -The employee exercised reasonable care to prevent and correct promptly any sexually harassing behavior -The plaintiff failed to take advantage of corrective opportunities Retaliatory discharge is the circumstance in which an employee is discriminated against and/or terminated by an employer because the employee asserted a complaint against the employer Undue hardship relates to the ADA requiring significant difficulty or expense on the part of the employer, taking into account: the nature of the business, cost of the accommodation, business’ resources -Putting in an elevator when a hotel is not making money is an undue hardship 16


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