Hospitality Law Exam1 study – Flashcards
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A contract has to be in writing to be enforceable by the courts T/F
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FALSE
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A valid contract needs consideration flowing to both parties T/F
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TRUE
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It is the responsibility of the courts to decide the relative fairness of consideration
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FALSE
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Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make the contract valid T/F
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TRUE
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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
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TRUE
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In a limited partnership, the limited partner has unlimited liability T/F
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FALSE
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A sole proprietorship is the most complex of all organizational structures T/F
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FALSE
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With a "C" corporation, the company is liable for taxes on the corporations profits and shareholders are liable for taxes T/F
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TRUE
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The conduct of individual employees has a direct affect on the liability of a business T/F
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TRUE
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All tying arrangements are illegal T/F
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FALSE
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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
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TRUE
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REIT must pay corporate income tax and state income tax T/F
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FALSE
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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
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TRUE
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The applicable law that governs a business entity is determined by where that entity, say a corporation, has filed its creating documents.
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TRUE
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Exculpatory clause seeks to put blame on the hotel operator in certain situations T/F
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FALSE
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Indemnification means to make one whole, to reimburse for a loss already incurred T/F
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TRUE
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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
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TRUE
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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
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TRUE
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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
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TRUE
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"Consideration" in the hospitality industry is often (3)
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$$ money, use of property, the promise to act or not act
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The best way for a hotelier to indicate acceptance of an offer is
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agree to the offer in writing
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The Latin phrase "Caveat Emptor" in the hospitality industry refers to?
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the burden of determining QUALITY AND PRICE of a product falls to the BUYER
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The uniform commercial code requires you to?
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Fufill any promises made in a purchasing or sales contract
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Capacity to Contract means
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the individuals creating a contract must meet minimum age, mental, and physical requirements in order to make the contract legal
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Which of the following organizational structures is least desirable from a liability perspective?
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General Partnership
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A type of business entity that offers liability protection to all owners and is exempt from taxation on its profits is?
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"S" corp
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Which of the following is part of the Agency Relationship?
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The master-Servant Relationship
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Which of the following is not an advantage when purchasing a franchise?
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Sensitivity to menu items for local clientele
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Which of the following represents a fee that is usually paid by the franchisee to the franchisor?
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Franchise fee, Earnings percentage (royalty fee), Advertising participation
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Which of the following is a major element of management agreements?
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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
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One of the most important componenets of the conference services contracts is the language used to establish and assign responsibility for the groups..
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MASTER BILL
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Which government agency regulates unfair or deceptive trade practices in the offering of franchises?
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Federal Trade Commission
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Civil law
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= a body of law that is created by government
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Common law descends from
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the laws of Great Britain.
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The way a case proceeds through the court system is governed by
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procedural law
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selection The S in stem stands for
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of the correct employee for the job
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Ethics means
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behavior of an individual towards another individual or group.
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Which of the following is a positive way to train employees
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raise employee morale and self esteem
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The branch of regulatory law that deals with regulations
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agency is administrative law
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The Texas court of last resort
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is the Texas court of criminal appeals
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Contract law is part
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of civil law.
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ADR (alternative dispute resolution) includes
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mediation, arbitration, summary laws, all of the above
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Statutory laws refers
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legislative law.
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Punitive damages are awarded
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when one party behaves egregiously. (Behaves badly).
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Plaintiff files lawsuit
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Law that governs how it proceeds is procedural law.
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Golden retriever
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The dog she has
