exam final
The legal entity which is taxed twice, once when revenue is earned and then again when the profits are distributed to the owners is known as ____. Question options: Joint Venture Limited Partnership "C" Corporation Limited Liability Company
"C" Corporation
A type of business entity that offers liability protection to all owners and is exempt from taxation on its profits is? Limited partnership Sole proprietorship "S" corporation "C" corporation
"S" corporation
The best definition of Civil Law is? -Is interested in precedent, or what has been decided in previous court cases with similar situations -A body of law created by government entities that are concerned with private rights and remedies as opposed to criminal matters -Derived from common law -All legal action that occurs based on laws that were written before the Civil War
A body of law created by government entities that are concerned with private rights and remedies as opposed to criminal matters
Which of the following statements is incorrect? Question options: A) A class action lawsuit is the case when the same incident affects an individual in the same manner more than once. B) A class action lawsuit is the case when a different incident affects many individuals in the same place. C) A class action lawsuit is the case when a similar incident affects many individuals in different places. D) A class action lawsuit is the case when a similar incidents affects many individuals in the same manner in the same place.
A class action lawsuit is the case when a similar incidents affects many individuals in the same manner in the same place.
Which of the following employees should make up the "Safety Committee"? Question options: A) The Line staff, as they have the most experience doing the job B) The managers, as they have the most ability to deal with crises C) The Executive Committee, to ensure that discretion is used in a crisis situation and to prevent the media and other staff from learning of situations as they arise D) A mixture of employees at all levels, to make the committee more effective throughout the hotel
A mixture of employees at all levels, to make the committee more effective throughout the hotel
Dram shop is described as: -A name given to a variety of state laws establishing a liquor licensee's third party liability -The name of the area within the hotel/restaurant where alcohol can be served legally -The name of the court house that rules on issues regarding the sale or consumption of alcohol -A lawsuit that may arise as the result of negligence in serving alcohol to guests in your home
A name given to a variety of state laws establishing a liquor licensee's third party liability
An invitee is an individual who is on a property at the _____ consent of the owner. Expressed Implied A or B A and B
A or B
Which is one of the three different groups of individuals who are protected under the ADA: Question options: A person who is "regarded as" having a disability. A person who may have a disability but has no written record of one. An individual who cannot see well without the aid of contacts or glasses. An individual with a physical or mental impairment that somewhat limits a minor life activity.
A person who is "regarded as" having a disability.
If a guest were to slip and fall in a puddle where there was not a wet-floor sign, or other reasonable indication of danger, then the hotel has likely committed: Question options: A tort A superior knowledge violation A breach of written contract A premises liability infraction A criminal infraction
A tort
An accurate definition for jurisdiction is the authority given by law or treaty to a court to try cases and make decisions on legal matters within a particular time frame and a particular geographic area. Question options: A) True B) False
A) True
If an insurance company is not financially sound, then your property is not necessarily covered, even if there is a written contract between the insurer and the insured. Question options: A) True B) False
A) True
The most common crimes against hospitality businesses are Question options: A) Consumer theft of services, which involves a guest who leaves without paying the bill B) Fraudulent payment of a bill, for example, where a stolen credit card is presented for payment C) Internal theft of assets, committed by your own staff D) A, B and C are the three most common activities
A, B and C are the three most common activities
The best way to ensure legal protection for a hotelier and to indicate acceptance of an offer is? -Agree to the offer in writing -Verbal or non-verbal agreement -Acceptance of a deposit =Acceptance of partial or full payment
Agree to the offer in writing
A hospitality manager may be responsible for which type of legal agreement(s)? -Employment Agreements -Supply Agreements -Management Agreements -Franchise Agreements -All of the above
All of the above
An effective way to reduce claims being filed against your hotel or restaurant is to provide _____. -exceptional customer service -a safe and secure property -all of the above -well-trained employees
All of the above
International insurance claims are generally less than U.S. claims due to: Question options: A) no punitive damages B) fewer claims C) international countries are less litigious D) All of the above E) None of the above
All of the above
The Family Medical Leave Act of 1993 grants an eligible employee up to a total of 12 workweeks of unpaid leave for? Question options: The birth or placement of a child for adoption or foster care All of the above Medical leave when the employee is unable to work because of a serious health condition The care of an immediate family member with a serious health condition
All of the above
To protect employers from employees who unlawfully use company information to further their own interests, employers should ____. Question options: All of the above Restrict employee access to sensitive company information. Add a policy to the employee manual limiting the use and disclosure of company confidential information. Label all proprietary documents as confidential.
All of the above
Which of the following is a major element of management agreements? -Incentives fees earned or penalties assessed related to operating performance -The control, if any, that the owner has in the selection or removal of the business's management personnel. -All of the above -Insurance requirements of the management company (who must carry the insurance and how much)
All of the above
An employee manual should contain which of the following policies? Question options: Employers right to modify policies Disciplinary process Payroll deductions Anti-harassment and anti-discrimination All of the above are appropriate.
All of the above are appropriate.
Upon notification from a government agency of a complaint or violation, the appropriate thing to do is? =Document the date and time all paperwork is received and be sure to check all correspondence for required deadlines -Assess the severity of the complaint and determine if legal consultation is necessary =Develop an action plan with or without an attorney =All of the above would be appropriate
All of the above would be appropriate
Title VII of the Civil Rights Act of 1964. =Prohibits employers from discriminating against individuals because of their race/ national origin =Requires investigations of complaints by employees who think they have been discriminated against -Requires employers to reasonably accommodate the religious practices of an employee or prospective employee =All of the above would be appropriate.
All of the above would be appropriate.
An innkeeper will likely be liable for damage to, or loss of, a guest's property unless the damage was caused by: -Acts of God such as flood or hurricane -Civil unrest -The negligence of the guest -All of the above.
All of the above.
Common areas of operation that are regulated by individual state Alcohol Beverage Commissions (ABC) are: -Permitted hours of sale -Approved changes for expansion or equipment purchases -Maintaining records -All of the above.
All of the above.
The two most common types of dispute resolution alternatives are. -Mediation and small claims court -None of the above is appropriate -Mediation and litigation -Arbitration and mediation -Litigation and settlement
Arbitration and mediation
A well drafted conference service contract will contain a provision for cancellation by the group. If a group decreases the number of contracted attendees, this is known as _____ and a provision should also be stated in the conference service contract. -Merger -Mitigation of damages -Attrition -Arbitration
Attrition
An employer may not ordinarily legally terminate an employee if it is done? Question options: A and B As a result of documented progressive discipline B and C To deny accrued benefits Because of legitimate illness or absence from work
B and C To deny accrued benefits Because of legitimate illness or absence from work
The main role of a security guard is to intervene when suspicious actions occur, even if doing so may not be safe. Question options: A) True B) False
B) False
A job qualification, established in good faith and fairness that is necessary to safely or adequately perform the job is known as a _____. Question options: Job attributes English speaking only rule Safety Qualifications BFOQ
BFOQ
Which one of the following is true about corporate business travel abroad? Question options: A) Domestic companies cannot predict volatile situations when employees are travelling internationally and therefore do not have any legal responsibility to protect their employees while traveling abroad. B) Employees carry the burden of learning cultural matters to keep themselves safe. C) Businesses have an obligation to exercise reasonable care to keep employees travelling abroad safe and secure. D) Companies do not need to carefully vet travel vendors. E) None of the above are true.
Businesses have an obligation to exercise reasonable care to keep employees travelling abroad safe and secure.
When items of value are found, the first goal should be to? A.Assess the value of the item B. Call the police C.Liquidate the property for the company's profit D. Return the property to its rightful owner
D. Return the property to its rightful owner
Cyber risk insurance is also known as ____. Question options: A) Business interruption coverage B) Cyber insurance coverage C) Data Breach coverage D) Enterprise Risk coverage
Data Breach coverage
Which of the following is NOT a part of crisis management? Question options: A) Educating your employees how to act if a crisis happens B) Dealing with the media when a crisis happens C) Discussing with your guests how the last crisis happened at the property D) Recognizing the good job your employees did during the crisis
Discussing with your guests how the last crisis happened at the property
"Travel law" is complicated for a variety of reasons, one of them being: Question options: A) Establishing jurisdiction B) Ease of access C) Controllable forces D) Reservations
Establishing jurisdiction
The procedure, which a lessor uses to remove a lessee from physical possession of leased real property, usually for violation of a significant lease provision, is called? -Default -termination -eviction -delinquency
Eviction
Signs such as "Swim at Your Own Risk" would be a good example of what type of contractual provision? -Adhesion Clause -Indemnification Clause -Merger Clause -Exculpatory Clause
Exculpatory Clause
A 5-ounce glass of table wine is safer and more moderate than one-and-a-half ounces of alcohol in a mixed drink, and less care is needed when serving it. T/F
False
A Safety Data Sheet (SDS) is the document generated to inform the EEOC of all the chemicals that you keep on your property. T/F
False
A restaurant is ordinarily responsible for both the items and their unseen contents once a bailment has been established. T/F
False
A sole proprietorship is the safest legal entity for a new business owner to create as it includes limited liability from negligence claims. True False
False
An eviction can only be carried out if the guest is on property at the time. T/F
False
As long as a manager has a good knowledge of the law, it is not very important to be concerned with attempting to prevent legal situations from arising. True False
False
Because a "social host" at a private party is not selling alcohol, but rather serving it gratuitously, he or she need not be concerned about the legal implications of serving a minor. A.True B.False
False
Compensatory damages are awarded to punish the offender in an attempt to deter similar behavior in the future. Question options: True False
False
Hospitality employers, under federal law, must undertake background checks on all employees or be subject to fines from the Department of Homeland Security. Question options: True False
False
If it appears that your employees are at fault at the time of a workplace incident, it is best to let any injured parties know immediately. Question options: True False
False
In every state, an innkeeper is required to accept for safe keeping an unlimited amount of personal property from the guest. T/F
False
In situations where federal, state and local laws conflict with one another, the federal law must be followed. T/F
False
Regarding personal property, ownership is generally assumed by its possession and it is not customary for the seller to prove their ownership rights. False or true
False
The IRS does not consider tips and gratuities given to employees by guests or patrons as taxable income. True False
False
When a complaint is lodged, or when inappropriate activity is brought to the attention of management, the manager should wait to see if the charge is proven, and only then take action to investigate the charge. Question options: True False
False
he Federal Trade Commission is tasked with verifying the information contained in all disclosure documentation provided by the franchisor to a prospective franchisee. True False
False
Which of the following would not ordinarily be classified as "Bona Fide Occupational Qualification?" Question options: Licensing Gender Education Certifications
Gender
Which of the following organizational structures is least desirable from a liability perspective? Limited partnership General partnership "S" corporation Limited liability company
General Partnership
When drafting a hospitality contract, you should do all of the following except ______. -Get it in writing. -Resolve ambiguities as quick and fair as possible. -Keep copies of all documents. -Get the best deal possible, even if your actions are somewhat ethically questionable. -None of the above appropriate.
Get the best deal possible, even if your actions are somewhat ethically questionable.
An "umbrella" as it relates to insurance: Question options: A) Is the maximum amount that can be paid for all claims during a policy period B) Is insurance coverage purchased to supplement primary coverage C) Is the maximum amount that will be paid in the event of a single claim D) Is the amount of insurance provided by a traditional insurance policy
Is insurance coverage purchased to supplement primary coverage
Which of the following terms is used when dealing with both real property and personal property? -Lease -FOB(Free on Board) -UCC -Deed
Lease
Under which theory of liability would a severely injured guest who allegedly slipped on some liquid on the floor in your restaurant file in his or her lawsuit? Question options: Strict liability Comparative Negligence Negligence Contributory Negligence Breach of Contract
Negligence
When regulatory legal demands conflict (such as state and federal laws) which law will prevail? +The most restrictive regulation will prevail. +None of the above are appropriate. +The person is free to choose whoever law it wants without significant consequences. -The federal law because it is the law of the land.
None of the above are appropriate.
Which two perspectives does the job description serve? Question options: Personal and professional perspective Operational and legal perspective Hotel and restaurant perspective Physical and mental perspective
Operational and legal perspective
What is the first priority to protect during an emergency at the property? Question options: A) People B) Power lines C) Property D) Crucial records of the business
People
Which of the following will impair the safety and the security of the hotel? Question options: A) Giving duplicate keys to the registered guest B) Allowing both the executive housekeeper and assistant executive housekeeper to have the master key for all the guest rooms C) Printing a welcome sign with the hotel's name on every key D) Writing down the room number for guests on a key card holder when they check in
Printing a welcome sign with the hotel's name on every key
Which of the following is one of the three primary categories of insurance policy types? Question options: A) Life insurance B) Health insurance C) Property-casualty insurance D) Rental insurance
Property-casualty insurance
Workers' Compensation: Question options: A) Provides injury-related insurance to those workers who were hurt while on the job B) Provides insurance to workers who have been laid off due to cutbacks C) Provides insurance to workers who have been terminated for an offense D) None of the above
Provides injury-related insurance to those workers who were hurt while on the job
Which of the following is a way to become a positive manager and build employee loyalty? =Raise employee morale and self-esteem =Not focus on turnover =Keep customer satisfaction =Remember that the bottom line is the most important factor
Raise employee morale and self-esteem
To reduce employee theft in your restaurant, you should consider all of the following except ____. Question options: A) Do not allow "off-the-clock" employees to linger around the restaurant after their shift. B) Create an antitheft environment C) Screen potential employee candidates as to whether they have ever been accused of stealing D) Implement effective inventory controls.
Screen potential employee candidates as to whether they have ever been accused of stealing
Which of the following is not advantage when purchasing a franchise? -Obtain a proven concept -National name recognition -National advertising support -Sensitivity to menu items for local clientele
Sensitivity to menu items for local clientele
The owners of a corporation are called _____. Lenders Shareholders Investors Members
Shareholders
The legal principle of following prior case law is known as ___. Strict liability Litigation Stare decisis Administrative law
Stare decisis
The type of relationship in hospitality which is known as the employer-employee relationship is also called _________. =The Employer/Independent Contractor =The Agent-Agency Relationship =The Agent-Principal Relationship =The Master-Servant Relationship
The Master-Servant Relationship
title insurance on real property is designed to protect _____. The buyer Future owners Missing heirs The seller
The buyer
"Truth in Menu" can be summed up by ensuring that: -The server must be able to memorize the menu -The menu for franchises of the same company must be identical -The menu items must accurately reflect the price that is charged and the food that is served -None of the above
The menu items must accurately reflect the price that is charged and the food that is served
The best thing to sober up an intoxicated person is: Time Coffee Shower Food
Time
"International Travel Law" is defined as: the ordinances, rules, treaties, and agreements used to regulate the international travel industry. Question options: A) True B) False
True
All contracts, whether verbal or written, must be for a legal purpose and in order to be enforceable, must consist of an offer, acceptance and consideration. True False
True
As long as a guest of a guest shows identification that has the same address that was given on a registration card, a key may be given to allow the guest access the desired room. true/ false
True
Chipped plates and glasses, or poorly washed utensils can present as much of a legal risk as serving spoiled food. T/F
True
It is legal to deny service of alcohol to an apparently intoxicated person, even if he or she is a guest in your establishment. T/F
True
It is recommended that children use hotel spas only under the supervision of an adult. True/ Flase
True
Liability insurance ordinarily provides coverage when a guest slips and falls. Question options: A) True B) False
True
Money, stocks, and interests in securities are examples of intangible property. True False
True
Owner-operator is a type of operating structure in which the owners of a business are directly responsible for its day-to-day operation. Also known, in some cases, as an "independent." T/F
True
Police officers are usually reluctant to enforce a hotel's claim for payment from a guest. True/ False
True
The applicable law that governs a business entity is determined by where that entity, say a corporation, has filed its creation documents.T/F
True
The law allows a hotel manager to remove guests and their belongings whenever the guests unlawfully possess a hotel room. T/F
True
Using a copyrighted work for teaching or research is normally not an infringement of a copyright. True False
True
An enforceable contract contains an offer, an acceptance and _______. -a bi-lateral agreement -a promise to do something -a uni-lateral agreement -consideration -it must be in writing
consideration
If two employees in a large restaurant company tell offensive jokes to each other in the workplace which of the following is true: Question options: the joke telling employees will not be held accountable if they did not mean to offend anyone since intent to harm is one of the key elements of the claim. private conversations are just that....private. employees who overhear the jokes may have a claim against their employer for a hostile work environment. since the offending employees did not touch anyone, they will not be legally liable.
employees who overhear the jokes may have a claim against their employer for a hostile work environment.
Hoteliers are responsible and liable for all accidents that happen on their property, whether foreseeable or not. True False
false
It is more effective and efficient to find your employees doing something wrong, than to find them doing something right in the workplace. T/F
false
When a patron slips and hurts him or herself in your restaurant, the first step you should take in responding to this accident is to call your insurance company to put them on notice of a possible claim so you don't waive your insurance coverage for the claim. Question options: True False
false
A guest in your restaurant leaves angry because his steak was incorrectly cooked. He has a wreck on the way home injuring himself and others, then threatens to sue the restaurant. What necessary element is probably missing in this case to substantiate negligence? Question options: third-party liability substantial inquiries duty of care assumption of risk proximate cause
proximate cause
Intentional torts include all of the following except ____. intentional infliction of emotional distress negligence slander libel assault
slander
A well-developed group lodging contact 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 group's final room rates.: True False
true
Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make the contract valid. True False
true
In the lodging industry, payment can be made if the hotel agrees to directly bill the company or group for all the charges. True False
true
It is illegal for the interviewer of a company to ask the person's religion to find out if they need to take "special days" off from work. Question options: True False
true
To assume agreed-upon maximum levels of liability in the event of a loss or damage is known as _____. Question options: A) underwriting B) annuity protection C) AA ratings D) Face sheet protection
underwriting
