HOSPITALITY LAW HADM 3720
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This 9 page Class Notes was uploaded by Ruthe Lubowitz IV on Monday September 21, 2015. The Class Notes belongs to HADM 3720 at Georgia State University taught by Diana Barber in Fall. Since its upload, it has received 61 views. For similar materials see /class/209883/hadm-3720-georgia-state-university in Hospitality at Georgia State University.
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Date Created: 09/21/15
Chapter 1 Prevention Philosophy Attomey any person trainedlegally authorized to act on behalf of others in matter of law Litigation act of initiating and carrying on a lawsuit Often used to refer to lawsuit itself Law rules of conductresponsibility established and enforced by society Common law laws derived from the historical customs and usage of a society and the decisions by courts when interpreting those customsusages Looks at precedent Descended from Great Britain used in the United States Civil law the body of law codesstatutes created by governmental entities that are concerned with private rights and remedies as opposed to criminal matters Descended from Roman Empire and used by most western European countries Latin America AsiaAfrica Decision is based on codes so judges don t feel the pressure of what others are say1ng Hospitality Law all laws involved with this industry such as food lodging travel and entertainment services to its guestclients select teach educate and manage Select managers can begin reducing litigation by selecting the right employee for the right job Employees must be selected based on qualifications written job specifications information derived from investigation of candidate for the position Teach must develop proper training methods for employees including feedback Educate must continuously keep educating them so that they know topicsprocedures must be passed on to employees Manage managers know that if you keep doing things the right way then this will lead to less chances for mistakes and therefore litigation PLOC Stem select the right employee for the right job teach employees while creating a training trail educate management and motivate staff in positive and nurturing manner Ethics refers to the behavior of an individual toward another individual or group Behavior that is right and is the correct thing to do Choices of proper conduct made by an individual in his or her relationships with others CHAPTER 2 HOSPITALITY CONTRACTS Plaintiff the personentity that initiates litigation against another Referred as the claimantapplicantpetitioner Defendant the person entity against which litigation is initiated Referred as respondent Contract agreementpromise made between two or more parties that the courts will enforce Valid contracts are established through verbalwritten Written contracts have advantages over verbal but in this hospitality industry most contracts with guests are done orally Creating a contract legal offer and consideration made acceptance exact terms of the offer creates an express contract Enforceable contract a contract recognized as valid by the courts and subject to court s ability to compel compliance with its terms Reasonably identifiable terms are enforceable Enforceability equals to agreement to exchange value A contract must be legally valid and must consist of the 3 elements 1 Offer a proposal to perform an act or to pay an amount that if accepted constitutes a legally valid contract 2 Acceptance unconditional agreement to the precise terms and conditions of an offer 3 Consideration the payment exchanged for the promise contained in a contract Express contract an acceptance that mirrors the offer is made A contract in which the components of the agreement are explicitly stated either orallyverbally M v the personbusiness that has purchased or received the franchise Franchise agreement is when the owner of a facility agrees to operate that facility in a specific manner in exchange for a franchise Franchisor personbusiness that has sold and or granted the franchise Management contracts contract is created when the owner of a facility allows another party to assume the daytoday operation of that facility Examples would be school foodservices campusdining operations Group room contracts is developed when an individualorganization requires a large number of hotel rooms Conventionmeeting space contracts conventionmeeting space contract Purchasing agreements employees who purchase goods for hotelsrestaurants are unique in that they have the ability to bind their employers to contracts that often have values of thousands or hundreds Uniform commercial code a model statute covering such issues as the sale of goods credit and bank transactions sales of more than 500 must be in writing and agreed by both parties Caveat emptor Latin phrase meaning let the buyer beware The phrase implies that the burden of determining the relative quality and price of a product falls on the buyer not the seller Con rmed reservation a contract to provide a reservation in which the provider guarantees the guest s reservations will be honored until a mutually agreeable time Nonguaranteed reservation a contract to provide a con rmed reservation where no prepayment or authorization is required Guaranteed reservation contract to provide a con rmed reservation in which the provider guarantees the guests reservation will be honored regardless of time of arrival but stating that the guest will be charged if her or she noshows the reservation Prepayment or payment authorization is required Attrition reduction in the number of projected participantsattendees Essential clauses for receiving products services a Payment terms down payments interest rates or remaining balances payment due dates and penalties for late payment are points that should be considered Delivery or state date there must be a speci ed deliver start date Completion date lets the contracting parties know when the contract terms end Performance standards refers to the quality of products services received Licensespermits you must obtain licensespermits Indemni cation to make one whole to reimburse for a loss already incurred Nonperformance clause what must be done if the contract is not ful lled Dispute resolution terms good idea to for contracting parties to agree on how to settle any disputes that may arise before they actually occur PCP 1090 Exculpatory clauses a contract clause that releases one of the parties from liability for hisher wrongdoings Breach of contract failure to keep the promises agreements of a contract Damages losses or costs incurred due to another s wrongful act Arbitration process in which an agreedupon independent neutral third party renders a nal and binding resolution to a dispute Mediation process in which an appointed neutral third party assists those involved in a dispute with resolving their differences Settlement is the result of the mediation Statue of limitations set the maximum time periods in which lawsuits must be initiated Chapter 3 Sole proprietorship Business owned and operated by single owner Any personal property can be used to collect back taxes losses or damages No personal protection from any of the risks associate with owning a business Pro ts are taxed at the same rate of the owner s personal income would be General partnership Business organization in which 2 or more owners agree to share the pro ts of the business but are also jointly and severally liable for its debts Formed through oralwritten contracts Have unlimited liabilities for debt of the business Limited partnership Limited partner invests in the business but may not exercise control over its operation in return for protection from liability No unlimited liability but only responsible for the investment they have made Generalmanaging partner assumes full control of the business operation but can also be held liable for any debts Bears unlimited liability for any debtsdamages Taxation the pro ts are distributed to the partners and taxed at the same rate as the owner s personal income tax Corporation Group of individuals granted a charter legally recognizing them as a separate entity with rightsliabilities distinct from those of its members Must pay taxes on its pro ts even if the pro ts are not distributed to the corporation s owners Dividend A portion of the pro ts received by a shareholder usually in relation to hisher ownership of a corporation Individual s pay taxed on these dividends under federal law S Corporation Type of business entity that offers liability protection to its owners and is exempt from corporate taxation on its pro ts Requirements to create this corporation No more than 35 shareholders issue only 1 class of stock shareholders must be US citizens and all shareholders must be individuals calendaryear scal basis All pro ts are distributed to the shareholders in proportion to their ownership of the corporation Pro ts are reported on the individual owners taX return and taxed at individual tax rate 1 Type of business that protects owners from liability for debts incurred by the business without the need for some of the formal incorporation requirements Taxation there is no federal taxation on the pro ts of this type of organization Agent A person authorized to act for or to represent another usually referred to the principal LOOK OVER PAGE 65 this has the taX breakdown and overall information on all the types of organizations Respondeat superior Let the master respond a legal theory that holds the employer master responsible for the acts of the employee Independent contractor A person or entity that contracts with another to perform a particular task but whose work is not directed or controlled by the hiring party A contract between a parent company Franchisor and an operating company to allow the franchisee to run a business wit the brand name of the parent company as longs as the terms of the contract concerning methods of operation are followed Licensing agreement A legal document that details the speci cs of a license The franchise company licensor is granting the right or license to operate as one of its franchisees licensee Licensor one who grants a license License legal permission to do a certain thing or operate in a certain way Licensee one who is granted a license Disclosure meant to reveal fully and honestly the terms FRANCHISE RULE Basic disclosures given at rst facetoface meeting or 10 business days before any money is paid or agreement is signed Earnings claims if ea1nings claims are made they must have a reasonable basis for those claims and evidence supporting the claims must be given to potential investors in writing Advertised claims affects only promotional ads that include an earnings claim Must disclose the number and percentage of existing franchisees that have achieved the claimed results along with cautionary language Franchise agreements Franchisor must give investors a copy of its agreements at the same time as the basic disclosures Refunds makes refundsdeposits and initial payments to potential investors in the disclosure document Contradictory claims franchisers are permitted to supply investors with any promotional materials they wish no written or oral claims may contradict information provided in the required disclosure document Franchise purchase Advantages stability researchdevelopment is part of the franchisor s responsibilities link to other online agents Disadvantages franchisor rulesregulations Tying arrangement Agreement that is illegal requiring that as a precondition of purchasing or obtaining services other services must be purchased through the seller Noncompete clause Two party agreement in which one party upon termination of the business relationship agrees not to compete within a designated area for a period of time Right of first refusal One party upon termination of the business relationship can exercise the right to buy the interest of the other party before those rights can be offered for sale to another Chapter 4 Real property Land and all the things that are permanently attached to it Personal property Tangible and intangible items that are not real property Real estate Land including soil and water buildings trees crops improvements and the rights of to the air above and the minerals below the land Improvements Features such as fences sewer lines and any changes that make the land more valuable Chattel Personal property movable or immovable that is not considered real property Fixture Any article that was once a chattel but has become a part of the real property because the article is permanently attached to the soil or to something attached to the soil Tangible property Personal property that has physical substance and can be held or touched EX are furniture equipment goods that can be moved from one location to another easily Intangible property Personal property that cannot be held or touched EX would be patent rights copyrights and concept rights Title Sum total of legally recognized rights to the possession and ownership of property Deed Written document for the transfer of landreal property from one person to another Warranty deed Person being granted the deed agrees to defend the title from claims of others The seller is representing that he or she fully owns the property and will stand behind the promise Title search Review of land records to determine the ownership and description of a piece of real property is Document under which personal property is transferred from seller to buyer Must include Name of sellerbuyer consideration description of property statement of ownership by seller date of sale Warranty Promise about a product made by either a manufacturer or a seller that is a part of the sales contract Lien Claim against property that gives the creditor the right to possess and or sell that property if the debtor does not repay hisher debt in timely manner Collateral Property that is pledged to secure the repayment of the debt Perfect of a lien To make a public record of a lien or to take possession of the collateral The pledging of real property by a debtor to a creditor to secure payment of a debt Deed of trust Places legal title to a real property in the hands of a trustee until the debtor has completed paying for the property Security interest Legal ownership right to the property I39ll Contract between lenderborrower that states the lender can repossess the personal property of a person has offered as collateral if the loan is not paid as agreed Financing statement Formal notice of a lien being held on personal property required under the Uniform Commercial Code in most cases Called UCCl Lease Contract that establishes the rightsobligations of each party with respect to property owned by one entity but occupiedused by another Lessor Entity that owns the property covered in a lease Landlord Lessor in a real estate property lease Sublet To rent property one possesses by a lease to another Trade dress Distinct Visual image created for and identi ed with a speci c product OSHA ADA
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