Hospitality Law Exam1 study

A type of business entity that offers liability protection to all owners and is exempt from taxation on its profits is?

"S" corp

A contract has to be in writing to be enforceable by the courts T/F

FALSE

A sole proprietorship is the most complex of all organizational structures T/F

FALSE

All tying arrangements are illegal T/F

FALSE

Exculpatory clause seeks to put blame on the hotel operator in certain situations T/F

FALSE

Which of the following is part of the Agency Relationship?

The master-Servant Relationship

The branch of regulatory law that deals with regulations

agency is administrative law

The best way for a hotelier to indicate acceptance of an offer is

agree to the offer in writing

The Texas court of last resort

is the Texas court of criminal appeals

Which of the following is a positive way to train employees

raise employee morale and self esteem

The Latin phrase "Caveat Emptor" in the hospitality industry refers to?

the burden of determining QUALITY AND PRICE of a product falls to the BUYER

"Consideration" in the hospitality industry is often (3)

$$ money, use of property, the promise to act or not act

Civil law

= a body of law that is created by government

In a limited partnership, the limited partner has unlimited liability T/F

FALSE

It is the responsibility of the courts to decide the relative fairness of consideration

FALSE

REIT must pay corporate income tax and state income tax T/F

FALSE

Which government agency regulates unfair or deceptive trade practices in the offering of franchises?

Federal Trade Commission

Which of the following represents a fee that is usually paid by the franchisee to the franchisor?

Franchise fee, Earnings percentage (royalty fee), Advertising participation

The uniform commercial code requires you to?

Fufill any promises made in a purchasing or sales contract

Which of the following organizational structures is least desirable from a liability perspective?

General Partnership

Which of the following is a major element of management agreements?

Incentive fees earned or penalties assessed related to operating performance, insurance requirements of the management company, the control if any that the owner has in the selection or removal of the business management personnel

Plaintiff files lawsuit

Law that governs how it proceeds is procedural law.

One of the most important componenets of the conference services contracts is the language used to establish and assign responsibility for the groups..

MASTER BILL

Which of the following is not an advantage when purchasing a franchise?

Sensitivity to menu items for local clientele

A management agreement is the legal agreement that defines the responsibilities of a business owner and the management company chosen to operate the owners business T/F

TRUE

A valid contract needs consideration flowing to both parties T/F

TRUE

A well-developed group lodging contract will include detailed language about a variety of items including how room rates will be calculated if the contract is signed prior to the establishment of the groups final room rates. T/F

TRUE

Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make the contract valid T/F

TRUE

Attrition refers to the amount of downward variance that may be permitted in a contract before some type of penalty is incurred on the part of the guest T/F

TRUE

Indemnification means to make one whole, to reimburse for a loss already incurred T/F

TRUE

Owner-operator is a type of operating structure in which the owners of a business are directly responsibile for its day to day operation. Also known, in some cases, as an "independent" T/F

TRUE

The UCC is the acronym for the law regulating purchasing agreements, which gives protection to buyers, sellers, and financial lenders when goods are purchased under contract T/F

TRUE

The applicable law that governs a business entity is determined by where that entity, say a corporation, has filed its creating documents.

TRUE

The conduct of individual employees has a direct affect on the liability of a business T/F

TRUE

The fees charged by management companies to operate a hotel vary, but commonly range between 1 and 5 percent of the hotels monthly revenue T/F

TRUE

With a "C" corporation, the company is liable for taxes on the corporations profits and shareholders are liable for taxes T/F

TRUE

Golden retriever

The dog she has

Ethics means

behavior of an individual towards another individual or group.

Statutory laws refers

legislative law.

ADR (alternative dispute resolution) includes

mediation, arbitration, summary laws, all of the above

Contract law is part

of civil law.

selection The S in stem stands for

of the correct employee for the job

The way a case proceeds through the court system is governed by

procedural law

Capacity to Contract means

the individuals creating a contract must meet minimum age, mental, and physical requirements in order to make the contract legal

Common law descends from

the laws of Great Britain.

Punitive damages are awarded

when one party behaves egregiously. (Behaves badly).