Law-GSU Definitions - Hospitality Law Definitions Basic...

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Unformatted text preview: Hospitality Law Definitions Basic Definitions Hospitality Law - Those laws which relate to the industry involved with the provision of food, lodging, travel and entertainment services to its guests and clients Basic Definitions Attorney - Any person trained and legally authorized to act on behalf of others in matters of the law. Litigation - The act of initiating and carrying on a lawsuit. Often, used to refer to the lawsuit itself. Law - The rules of conduct and responsibility established and enforced by a society. Liable – To be legally responsible or obligated. Interstate Commerce - Commercial trading or the transportation of persons or property between or among states. Basic Definitions Common Law – Laws derived from historical customs and usage of a society, and the decisions by courts when interpreting those customs and usages. Civil Law – The body of law (usually in the form of codes or statues) created by governmental entities that are concerned with private rights and remedies, as opposed to criminal matters. Basic Definitions Plaintiff - The person or entity that initiates litigation against another. Sometimes also referred to as the claimant, petitioner, or applicant. Defendant - The person or entity against which litigation is initiated. Sometimes referred to as the respondent. Basic Definitions Personal Injury - Damage or harm inflicted upon the body, mind or emotions. Contingency Fee - A method of paying for a civil attorney’s services where the attorney receives a percentage of any money awarded as a settlement in the case. Typically, these fees range from 20-40% of the total amount awarded. Basic Definitions Interrogatories - Questions which require written answers, given under oath, asked during the discovery phase of a lawsuit. Depositions - Oral answers, given under oath, to questions asked during the discovery phase of a lawsuit. Depositions are recorded by a certified court reporter and/or by videotape. Basic Definitions Subpoena – A court-authorized order to appear in person at a designated time and place, or to produce evidence demanded by the court. Appeal - A written request to a higher court to modify or reverse the decision of a lower level court. Basic Definitions Standard of Care - The industry-recognized, reasonably accepted level of care used in fulfilling a Duty of Care. Reasonable Care - The degree of care that a reasonably prudent person would use in a similar situation. Basic Definitions Compensatory Damages - Are awarded to restore the injured party to the position they were in prior to the injury (i.e. medical expenses, lost wages, etc.). Punitive Damages - A monetary amount used as punishment and to deter the same wrongful act in the future by the defendant and others. Basis Definitions Tort - An act or failure to act (not involving a breach of contract), that results in injury, loss or damage to another (i.e. negligence is an unintentional tort; whereas battery, physically touching someone is usually an intentional tort). Negligent (Negligence) - The failure to use reasonable care. Gross Negligence - The reckless or willful failure to use even the slightest amount of reasonable care. Contributory Negligence - Negligent conduct by the complaining party (plaintiff) that contributes to the cause of his or her injuries. Ethics Ethics – Choices of proper conduct made by an individual in his or her relationships with others. Ethical Decision-Making Process 1. 2. 3. 4. 5. 6. 7. Is it legal? Does it hurt anyone? Is it fair? Am I being honest? Would I care if it happened to me? Would I publicize my action? What if everyone did it? Contracts Contract - An agreement or promise made between two or more parties, that the courts will enforce. Enforceable Contract - A contract recognized as valid by the courts and subject to the court’s ability to compel compliance with its terms. Contracts Offer – A proposal to perform an act or to pay an amount that, if accepted, constitutes a legally valid contract. Consideration - The payment exchanged for the promise(s) contained in a contract. Acceptance - Unconditional agreement to the precise terms and conditions of an offer. Contracts Breach of Contract - Failure to keep the promises or agreements of a contract. Indemnification – To make one whole; to reimburse for a loss already incurred. Damages - Losses or costs incurred due to another’s wrongful act. Contracts Franchise agreements Management contracts Group rooms contracts Convention or meeting space contracts Purchasing agreements Contracts Confirmed Reservation - A contract to provide a reservation in which the provider guarantees the guest’s reservation will be honored until a mutually agreeable time. A confirmed reservation may be either guaranteed or nonguaranteed. Guaranteed Reservation - A contract to provide a confirmed reservation in which the provider guarantees the guest’s reservation will be honored regardless of time of arrival, but the guest will be charged if he or she no-shows the reservation. Prepayment or payment authorization is required Contracts Non-guaranteed Reservation - A contract to provide a confirmed reservation where no prepayment or authorization is required. Attrition – Reduction in the number of projected participants or attendees. Contract Reminders 1. 2. 3. Get it in writing. Read the contract thoroughly. Keep copies of all contract documents. 4. Use good faith when negotiating contracts. 5. Note and calendar time deadlines for performance. Contract Reminders (Continued) 6. Ensure the performance of third parties. 7. Share contract information with those who need to know, and educate staff on the consequences of contract breach. 8. Resolve ambiguities as quickly and fairly as possible. Settling Cases Arbitration - A process in which an agreed-upon, independent, neutral third party (the arbitrator), renders a final and binding resolution to a dispute. The decision of the arbitrator is known as the “award.” Mediation - A process in which an appointed, neutral third party (the mediator), assists those involved in a dispute with resolving their own differences. The result of mediation, when successful, is known as the “settlement.” Settling Cases Statute of Limitations - Various laws that set maximum time periods in which lawsuits must be initiated. If the suit is not initiated (or filed) before the expiration of the maximum period allowed, then the law prohibits the use of the courts for recovery. Business Structures Corporation -A group of individuals granted a charter, legally recognizing them as a separate entity with rights and liabilities distinct from those of its members. S Corporation - A type of business entity that offers liability protection to its owners, and is exempt from corporate taxation on its profits. Some restrictions limit the circumstances under which it can be formed. Business Structures Limited Liability Company (LLC) - A type of business organization that protects the owners from liability for debts incurred by the business, without the need for some of the formal incorporation requirements. The federal government does not tax the profits of LLC’s; however, some states do while others do not. Ownerships Agent - A person authorized to act for or to represent another, usually referred to as the principal. Franchise - A contract between a parent company (franchisor) and an operating company (franchisee) to allow the franchisee to run a business with the brand name of the parent company, as long as the terms of the contract concerning methods of operation are followed. Ownerships License - Legal permission to do a certain thing or operate in a certain way. License Agreement - A legal document that details the specifics of a license. Disclosure - To reveal fully and honestly. Ownerships Title - The sum total of all legally recognized rights to the possession and ownership of property. Deed - A written document for the transfer of land or other real property from one person to another. Ownerships Warranty Deed - A deed that provides that the person granting the deed agrees to defend the title from claims of others. In general, the seller is representing that he or she fully owns the property and will stand behind this promise. Title Search - A review of land records to determine the ownership and description of a piece of real property. Ownerships Bill of Sale - A document under which personal property is transferred from a seller to a buyer. Lien - A claim against property that gives the creditor (lien-holder) the right to repossess and/or sell that property if the debtor does not repay his or her debt in a timely manner. Collateral - Property that is pledged to secure the repayment of a debt. Ownerships Capital Improvement - The purchase or upgrade of real or personal property that results in an increased depreciable asset base. Depreciation - The decrease in value of a piece of property due to age and/or wear and tear. Ownership Trademark - A word, name, symbol, or combination of these that indicates the source or producer of an item. Patent - A grant issued by a governmental entity ensuring an inventor the right to exclusive production and sale of his or her invention for a fixed period of time. Ownership Copyright - The legal and exclusive right to copy or reproduce intellectual property. Public Domain - Property that is owned by all citizens, not an individual. Liability Dram Shop Acts - Legislation, passed in a variety of forms and in many states, that imposes liability for the acts of others on those who serve alcohol negligently, recklessly, or illegally. Garnishment - A court-ordered method of debt collection in which a portion of a person’s salary is paid to a creditor. Employment Law Job Description - A written, itemized listing of a specific job’s basic responsibilities and reporting relationships. Negligent Hiring - Failure on the part of an employer to exercise reasonable care in the selection of employees. Defamation - False statements that cause someone to be held in contempt, lowered in the estimation of the community, or to lose employment status or earnings or otherwise suffer a damaged reputation. Employment Law Hiring Tests – Must be legal and valid. – Must comply with Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990. – Must not be biased against anyone because of race, color, religion, age, sex, national origin, or disabilities.(exception: bona-fide occupation qualification). Employment Law Affirmative Action - A federally mandated requirement that employers who meet certain criteria must actively seek to fairly employ recognized classes of workers. (Some state and local legislatures have also enacted affirmative action requirements.) Employment Law At-Will Employment - An employment relationship where employers have a right to hire any employee, whenever they choose, and to dismiss an employee for or without cause, at any time; the employee also has the right to work for the employer or not, or to terminate the relationship at any time. Workers’ Compensation - A benefit paid to an employee who suffers a work-related injury or illness. Employment Law Collective Bargaining Agreement (CBA) - A formal contract between an employer and a group of employees that establishes the rights and responsibilities of both parties in their employment relationship. Employment Law Quid Pro Quo - Latin term for, “giving one thing in return or exchange for another.” Wrongful Termination - A violation, by the employer, of the employment relationship resulting in the unlawful firing of the employee. Employment Law Progressive Discipline - An employee development process that provides increasingly severe consequences for continued violation of workplace rules. Ombudsperson - A company official, appointed to investigate and resolve worker complaints. Duty of Care - A legal obligation to protect against harm. Employment Posters Fair Labor Standards Act (FLSA) Equal Employment Opportunity Commission (EEOC) Occupational Safety and Health Administration (OSHA) Employee Polygraph Protection Act Family and Medical Leave Act (FMLA) Employment Law Proximate Cause - The event or activity that directly contributes to (causes), the injury or harm. Intentional Act - A willful action undertaken with or without full understanding of its consequences. Laws Related to Guests Segregate - To separate a group or individual on any basis, but especially by race, color, religion, or national origin. Invitee - An individual who is on a property at the expressed or implied consent of the owner. Laws Related to Guests Eviction - Removal of a tenant from rental property by a laws enforcement officer. An eviction is the result of a landlord filing and winning a special lawsuit known as an “unlawful detainer.” Liability Bailment - The delivery of an item of property, for some purpose, with the expressed or implied understanding that the person receiving it shall return it in the same or similar condition in which it was received, when the purpose has been completed. Examples include, coat checks, valet parking, safety deposit boxes, laundry, luggage storage and delivery. Liability Third Party Liability - A legal concept that holds the second party (seller) in an alcohol transaction liable for the acts of the first party (consumer), as well as for any harm suffered by a third party as a result of the first party’s actions. Social Host - A non-licensed provider of alcohol, typically in a party or similar gathering. Dram Shop - A name given to a variety of state laws establishing a liquor licensee’s third-party liability. ...
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