Business Law for Hospitality Textbook Exam Questions
Course Introduction
This course provides an in-depth exploration of the legal principles and regulations that affect the hospitality industry, including hotels, restaurants, travel, and tourism businesses. Students will examine topics such as contracts, liability, employment law, intellectual property, licensing, and compliance with health and safety standards. Emphasis is placed on understanding how legal issues impact daily operations and management decisions within hospitality organizations. Through real-world case studies and legal scenarios, students develop practical skills for identifying risks, managing disputes, and ensuring legal compliance in various hospitality contexts.
Recommended Textbook
Hotel Restaurant and Travel Law 7th Edition by Karen Morris
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16 Chapters
641 Verified Questions
641 Flashcards
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Page 2
Chapter 1: Introduction to Contemporary Hospitality Law
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Sample Questions
Q1) The process by which the federal government adopts laws is called:
A) Precedents
B) Constitutional law
C) Legislative process
D) Delegated powers
Answer: C
Q2) A business that affects more than one state is _________________________ commerce.
Answer: interstate
Q3) Rebecca was attacked at gunpoint while walking home from work late one night. Her pocketbook was stolen and her arm broken. She wants compensation for the money that was stolen and her medical bills. True or false: To secure compensation, she should pursue a criminal case.
A)True
B)False
Answer: False
Q4) The people who govern administrative agencies are elected to office.
A)True
B)False
Answer: False
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Chapter 2: Legal Procedures: Journey of a Case Through the Courts
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Sample Questions
Q1) A request to judge for relief made while a lawsuit is ongoing is called a
Answer: motion
Q2) A diner sued a restaurant, claiming the food was rancid and made her sick. The restaurant intends to deny these claims and seek payment from the diner for the cost of the meal, which the diner refused to pay. The document in which the restaurant would assert this claim is:
A) The complaint
B) The answer
C) The summons
D) The bill of particulars
Answer: B
Q3) The ______________________________ in a complaint must set forth facts demonstrating that the court designated by plaintiff has the power to decide the case. Answer: statement of jurisdiction
Q4) The court with the authority to hear cases involving wills is
Answer: Surrogate's court
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Chapter 3: Civil Rights and Hospitality Businesses
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Sample Questions
Q1) Absent malice or intention to cause harm to victims of discrimination, a business that discriminates on the basis of religion or color does not violate the Civil Rights Act of 1964.
A)True
B)False
Answer: False
Q2) A ____________________ is a precedent that marks a turning point in the interpretation of the law.
Answer: landmark
Q3) Penalties for violation of the Civil Rights Act of 1964 include jail and fines.
A)True
B)False
Answer: False
Q4) A restaurant can legally place all its wheelchair-accessible tables in the same area.
A)True
B)False
Answer: False
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Chapter 4: Contract Law and the Hospitality Industry
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Sample Questions
Q1) A primary reason that a contract for a catered event should be in writing is
Q2) Matt contracted to purchase a computer at age 16. Until when can he disaffirm the contract?
A) He cannot cancel it at any time.
B) He can disaffirm the contract until his eighteenth birthday.
C) He can avoid the contract while he is under 18 and for a reasonable period of time after he reaches age 18.
D) He can avoid the contract anytime until he reaches age 21.
Q3) Which of the following is not true about the statute of frauds?
A) Initials on a writing are sufficient in lieu of a signature.
B) Two pieces of paper can be used together to make up the necessary writing.
C) The required signature is that of the plaintiff in a lawsuit.
D) A note or memorandum may be sufficient to satisfy the writing requirement.
Q4) Mutuality is established by an offer and an ____________________.
Q5) An oral contract made by a restaurant for the purchase of a freezer for $1,100 is enforceable in court.
A)True
B)False
Page 6
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Chapter 5: Principles of Negligence
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Sample Questions
Q1) An employer is never liable for the acts of independent contractors.
A)True
B)False
Q2) Which of the following is not true concerning young people?
A) A young child who is negligent will not be liable for any injuries caused thereby.
B) The standard of care owed to young guests by a hotel that accepts children as guests is impacted by their inexperience and impulsive nature.
C) Because parents are required to care for their children, the duty of care owed to children is the same as that of adults.
D) The doctrine of attractive nuisance applies to children.
Q3) A hotel guest went swimming alone in the hotel pool at 2:00 a.m. His family sued the hotel, claiming negligence per se because the hotel did not have a shepard's hook by the pool, as required by law. True or false: The doctrine of negligence per se will result in liability of the hotel in this case. a.m. and drowned. He was not discovered until 8:00
A)True
B)False
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Page 7
Chapter 6: Negligence and Hospitality Practices
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Sample Questions
Q1) A resort hotel rented bicycles by the day to its guests. Each morning before the bikes were rented out, and each night after they were returned, hotel personnel tested the bikes to be sure the horn, brakes, and other mechanisms were working properly. Once a week, each bike was thoroughly inspected and given a tune-up. While a guest was using one of the bikes, the brakes malfunctioned and the guest suffered an accident. Is the hotel liable for the injuries?
A) Yes, the hotel is negligent.
B) Yes, the hotel is an ensurer of guests' safety.
C) No, a hotel is not liable when its sporting equipment malfunctions.
D) No, the hotel is not negligent under the circumstances.
Q2) The elevator in a two-story restaurant broke down, and a repair company was called to fix it. The repairs were done improperly, and a diner was injured when the elevator fell several floors. True or false: Only the repair company, and not the restaurant, will be liable for the injuries.
A)True
B)False
Q3) The security measures a hotel might take to lower the risk of criminal activities include
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Chapter 7: Guests and Other Patrons
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Sample Questions
Q1) The actions of the parties usually provide the needed ____________________.
Q2) An essential element of all contracts is the ____________________ by the parties to enter a contract.
Q3) People staying at a hotel on a permanent basis are ____________________.
Q4) Jonathon was a guest at a hotel for two days, and he checked out around noon on the second day. He intended to sightsee that day before leaving town in the early evening. He left his luggage for the duration of the day in the hotel luggage storage room. Does Jonathon qualify as a hotel guest while sightseeing?
A) No, because his intention to become a guest has ended.
B) No, because once a guest checks out of a hotel, guest status terminates.
C) Yes, because luggage storage is a service offered primarily to guests.
D) Yes, because once a person has been a guest in the hotel he or she remains a guest for all purposes forever thereafter.
Q5) Which of the following is not used to distinguish between a guest and a tenant?
A) Whether or not the building contains a restaurant
B) The terms of the contract between the hotel and the patron
C) The terms of payment (e.g., daily, weekly, monthly)
D) The incidental services offered
Q6) The hotel's intent is ____________________ by its acceptance of the suitcase.
Page 9
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Chapter 8: Protecting Patrons Property
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Sample Questions
Q1) Most states' limiting liability statutes either relieve a hotel from liability or limit the liability when loss is caused to guests' property from fire, provided the fire was not due to the hotel's negligence.
A)True
B)False
Q2) ______________________________ refer to goods for sale brought to a hotel by a salesperson/guest.
Q3) If a hotel complies with a limiting liability statute and a guest's property is stolen, what, if any, liability does the hotel have?
A) The hotel will be liable for the full amount of the loss.
B) The hotel will be liable only for the amount set by the statute.
C) The hotel will have no liability.
D) The hotel will be required to pay the guest double the amount of the loss.
Q4) In a mutual-benefit bailment, both the bailor and the bailee owe each other certain duties.
A)True
B)False
Q5) A bailment created by law rather than agreement is called a ____________________ bailment.
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Chapter 9: Rights of Innkeepers
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Sample Questions
Q1) Daisy arrived at a hotel at 3:00 am. She rang the bell on the registration desk to alert the sleeping attendant of her presence. Which of the following is true?
A) If the hotel has vacancies, it must provide a room to Daisy.
B) Due to the lateness of the hour the attendant can refuse to provide accommodations. C) The attendant must provide Daisy with a room but, due to the lateness of the hour, can charge her an additional fee.
D) The hotel has discretion in this circumstance and can either provide a room or not as the attendant sees fit.
Q2) The amount of force a hotel can use to evict a trespasser is
Q3) If an innkeeper wrongly determines that a guest stole towels from a room and so detains the person, the guest may also be able to sue the hotel for
Q4) A hotel that uses verbal abuse to effect an eviction may be liable to the person evicted.
A)True
B)False
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Page 11
Chapter 10: Guests Rights
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Sample Questions
Q1) In which case is the hotel most liable?
A) Credit card fraud
B) Cars broken into on the hotel parking lot
C) Insulting customers
D) Charging calls
Q2) What must a police officer have to obtain a search warrant?
A) Probable cause
B) Front desk agents word
C) Loud guests
D) Disturbing guests
Q3) Under which of the following circumstances is entry into a guest room not legal?
A) The guest consents to a police search.
B) The innkeeper consents to a police search.
C) The television is blaring, causing guests in adjacent rooms to call the front desk complaining of the noise.
D) The guest ordered room service, and delivery is being made.
Q4) When a hotel accepts a mailed package for a guest, it becomes a ___________________________________ of the package.
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Chapter 11: Liability and the Sale of Food
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Sample Questions
Q1) If an innkeeper purchased a couch for a guest room, and it collapsed when the first guest to occupy the room sat on it, the couch would violate the warranty of ____________________.
Q2) The warranty of merchantability applies when a supplier delivers ordered food to a restaurant.
A)True
B)False
Q3) The reasonable expectation test examining whether an object found in food ought to have been anticipated by the consumer.
A)True
B)False
Q4) Merchantable means the goods are not of good quality and fit for their ordinary purpose.
A)True
B)False
Q5) Customers who were injured eating walnut ice cream with the shell of the nut violates merchantability.
A)True
B)False
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Chapter 12: Liability and the Sale of Alcohol
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Sample Questions
Q1) A bar accused of providing inadequate security can avoid liability by showing that additional security measures would be costly and would create an economic burden.
A)True
B)False
Q2) Most states prohibit alcohol sales to all but which of the following?
A) People with heart conditions
B) People under age 21
C) People who are habitual drunkards
D) People who are visibly intoxicated
Q3) Jack's boss, Nancy, held a party at a hotel. Jack had several drinks, some paid for by Nancy. Jack later drove home and got into an accident, killing two people in the other car. Who was held liable?
A) The hotel
B) The employer
C) The two people in the other car
D) All the above
Q4) A person who regularly drinks at a licensee's premises and frequently becomes intoxicated is called a ______________________________.
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Chapter 13: Travel Agents and Airlines Rights and Liabilities
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Sample Questions
Q1) A traveler with an airline reservation who is bumped due to overbooking is entitled to damages based on ______________________________.
Q2) To avoid liability for breach of contract when an airline cancels a flight for a good cause, what must the airline do?
A) Reimburse the passenger double the amount of the cost of the ticket to cover the inconvenience
B) Assist passengers in locating alternate flights to reach their destination
C) Reimburse the passenger the full cost of the ticket
D) Give the passenger a free ticket anywhere in the United States to be used at a later time
Q3) Two hundred members of a certain ski club paid $3,000 each for a European ski trip. The company that sponsored the trip went out of business without providing the trip and without returning the club members' deposits. What type of action best suits this circumstance?
A) A class action
B) A small claims action
C) A negligence action
D) An independent contract's action
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Chapter 14: Employment
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Sample Questions
Q1) The term _________________________ refers to artificial barriers that restrict promotion opportunities for women and minorities to management and decision-making positions in business.
Q2) If a job applicant is an alien qualified to work in this country but is not a U.S. citizen, an employer can legally refuse to hire that person on the basis that he or she is not a citizen.
A)True
B)False
Q3) The __________________________________________________ makes it unlawful for an employer to refuse to hire, on the basis of age, a person who is 40 years old or older.
Q4) Congress sets the minimum wage; states may not pass laws varying from the minimum wage set by Congress.
A)True
B)False
Q5) The classes of people protected by the Civil Rights Act of 1964 include disabled persons.
A)True
B)False
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Chapter 15: Regulation and Licensing
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Sample Questions
Q1) The primary purpose of statutes that require hotels to post their rates is to enable travelers seeking rooms to comparison-shop.
A)True
B)False
Q2) A restaurant that uses a name will obtain no rights to the name unless it registers the name as a trademark with the Patent and Trademark Office.
A)True
B)False
Q3) Requiring a business to forfeit part of its operations because it has reached monopoly proportions is called ____________________.
Q4) Jim owned property that he wanted to use for a snack bar. The local zoning ordinances prevented such use. He may nonetheless be able to open a snack bar on the property if he receives from the local government:
A) A variance
B) A license
C) Divestiture
D) A copyright
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Sample Questions
Q1) Which of the following accurately compares the duty owed by a casino to protect the safety of its guests as compared to the duty owed by a hotel?
A) The duty owed by a casino is greater.
B) The duty owed by a hotel is greater.
C) The duty owed by both are the same.
D) Neither owes a duty.
Q2) The Jones Act applies to casinos on Indian reservations.
A)True
B)False
Q3) _________________________ casinos are the result of laws that prohibit gambling on shore, but not out at sea.
Q4) Which of the following is an example of false imprisonment?
A) A guest who is lodging at a casino hotel fails to pay the hotel bill.
B) A casino refuses to pay on a bet because of suspicious circumstances.
C) A casino detains a bettor based on the manager's guess that the patron was using fake coins in a slot machine.
D) A supervisor continually makes sexual innuendos about an employee.
Q5) Some states prohibit _________________________ within the state.
18
Q6) Probable cause is a defense to the tort of
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