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).
