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Chapter 8 outline - Chapter 8 1 Protecting Patrons Property...

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Chapter 8 1) Protecting Patrons’ Property a. Risks to Property in the Hotel i. Guests Insurance 1. Most guest insurance policies provide that the insurance company will pay the compensation to the guest but can then sue the hotel for the same amount. 2. Only if the hotel is liable with they be forced to pay back th insurance company. ii. Absolute Liability for guests’ goods 1. Absolute or Strict Liability a. A hotel or inn is liable for any loss of guests’ property occurring on the property i. Infra hospitium- “within the inn” iii. Exceptions to the Absolute Liability Rule 1. Loss was attributed to what the law calls an “act of god,” which includes, earthquakes, lightning, snowstorms, tornadoes and foods. 2. Loss caused by a Public Enemy, which includes wartime and terrorist activities 3. Negligence by the guest, such as leaving luggage unattended in the lobby iv. Prima Facie Liability Rule- Minority View 1. Six states have adopted a rule that modifies the common law absolute liability rule as follows a. Hotelkeepers are liable for property loss only if the loss occurs through their negligence i. If the innkeeper can prove that the loss resulted from some other cause, for example, if the goods are stolen by robbers without aid or negligence from the innkeeper; then the innkeeper is not liable b. Limited Liability- Modern Limitations on the Absolute Liability Rule i. Common Provisions 1. The hotel must provide a safe for use by guess to protect their property 2. The hotel must post notices announcing to guests the availability of the safes 3. The hotel must post notices announcing that the hotel’s liability for guests’ property is limited 4. The maximum recovery allowed to a guest for stolen or lost property is prescribed by statue and is usually substantially less than the value of the missing property. ii. Providing a Safe
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1. The hotel usually provides safes within the confines of individual rooms as compared to older hotels that provided a common location for all of the safes. iii. Posting Notice of Availability of Safe 1. Strict Interpretation of Posting Requirements a. If a hotel does not properly post notices then the law is interpreted by common law and is absolute liability.
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