Chapter 6

Question 1

Attrition

Answer 1

The difference between the actual number of sleeping rooms picked up (or f&b covers or revenue projections) and the number or formulas agreed to in the terms of the facility’s contract. Usually there is an allowance shortfall before damages are assessed.

Question 2

Cancellation Clause

Answer 2

Provisions in a contract which outlines damages to be paid to the non-canceling party if cancellation occurs, due to the canceling party’s breach of the contract.

Question 3

Communication Matrix

Answer 3

Determining what needs to be communicated, to whom, who is doing the communication, when and how often, how and why for various communication situations.

• Who will communicate it?
• What needs to be communicated?
• When and how often?
• How and why?

Question 4

Contract

Answer 4

An agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other’s duty or a remedy for the breach of the other’s duty.

Question 5

Contract Addendum

Answer 5

Modification to the original document by adding information.

Question 6

Crisis

Answer 6

Any event that is, or is expected to lead to an unstable and dangerous situation affecting an individual, group, community, or whole society.

Question 7

Disaster

Answer 7

A disaster is a serious disruption of the functioning of a community or a society involving widespread human, material, economic or environmental losses and impacts which exceeds the ability of the affected community or society to cope using its own resources.

Question 8

Due Diligence

Answer 8

The process of asking reasonable questions to assist in developing a risk-management plan appropriate to the organization and the meeting/event; this also applies to developing a contract for the meeting/events.

Question 9

Egress

Answer 9

1) The action or right of going or coming out
2) A place or means of going out:exit

“they egressed the area by heading south”

Question 10

Emergency

Answer 10

1) An unforeseen combination of circumstances or the resulting state that calls for immediate action
2) An urgent need for assistance or relief.

Question 11

Event Specifications Guide (ESG)

Answer 11

The preferred term for a comprehensive document that outlines the complete requirements and instructions for an event. This document is typically authored by the event planner and is shared with all appropriate vendors as a vehicle to communicate the expectations of services for a project.

Question 12

Force Majeure

Answer 12

An event (ex - war, labor, strike, extreme weather or other disruptive circumstances) or effect that cannot be reasonably anticipated or avoided.

Question 13

Indemnification Clause

Answer 13

A contract clause in which one party agrees to pay damages or claims that the other party may be required to pay to another. For example, if a hotel is sued by an attendee that is injured at an event due to the fault of the group, an indemnification clause might require the group to pay back the hotel. Some times law requires one party to indemnify another event without specific clause.

Question 14

Mitigate

Answer 14

The efforts taken to reduce or minimize the risks at a meeting/event that have been predicted to have a potential impact on the organization.

Question 15

Negligence

Answer 15

Failure to use reasonable care, resulting in damage or injury to another.

Question 16

Phone Tree

Answer 16

Telephone information system that speaks to the caller with a combination of fixed-voice menus in real time. The caller can respond by pressing phone keys or speaking words or short phrases. These key presses can register information or route calls based on the programmed responses.

Question 17

Reasonable Prudent Person

Answer 17

An individual who uses good judgement or common sense in handling practical matters. The actions of a person exercising common sense in a similar situation are the guide in determining whether an individual actions were reasonable.

Question 18

Rider

Answer 18

Additional clause in a contract stipulating special requirements.

Question 19

Risk

Answer 19

Expose (someone or something valued) to danger, harm or loss.

Question 20

Risk Management

Answer 20

Recognizing the possibility of injury, damage or loss and having a means to prevent it or provide insurance.

Question 21

Standard Operating Procedure (SOP)

Answer 21

Documented standards, policies and procedures.

Question 22

Acceptance

Answer 22

A requirement for entering into a binding contract. If a contract proposal (offer) is made, it is accepted if the offeree signs the offer is submitted. If the offeree makes any changes to the offer before signing, it is a counter offer, not acceptance.

Question 23

Act of God

Answer 23

An extraordinary natural event such as extreme weather, flood, hurricanes, tornadoes, earthquake or similar natural disaster that cannot be reasonably foreseen or prevented over which a contracting party has no reasonable control, making performance of the contract illegal, impracticable or impossible. Thus the parties have no legal responsibility to continue performance of the contract.

Question 24

Actual Damages

Answer 24

Also compensatory damages compensate for actual injury or loss.

Question 25

Authorized Signatory

Answer 25

A person who is authorized to legally bind an individual or organization to a contract to sign checks on behalf of an organization or charge to an organization’s master account.

Question 26

Cancellation/Interruption Insurance

Answer 26

Insurance that protects an event organizer against financial loss or expenses incurred when contractually specified perils necessitate canceling or relocating an event, or cause a reduction in attendance.

Question 27

Capacity

Answer 27

Legal qualification; competency power or fitness, eg - a person’s capacity and authority to enter into a contract may be questioned.

Question 28

Condition of Premises

Answer 28

A contract clause that addresses the issue of the property’s condition and any material deterioration or damage to the facility that occurred between the time of the contract was signed and the commencement of the event. It may provide remedies or procedures to apply in the event of a change in condition rarely used for short-term booking.

Question 29

Consideration

Answer 29

The inducement to a contract. The cause, motive, price or impelling influence which induces a contracting party to enter a contract.

Question 30

Crisis Response Team

Answer 30

An individual or group of individuals who respond to an emergency or crisis for the purpose of managing the situation and identifying and engaging the appropriate resources.

Question 31

Cut-off Date

Answer 31

Designated date when a hotel will release any unsold sleeping rooms in a group block and make them available to the general public. The date is typically 3-4 weeks before the event.

Question 32

General Liability Insurance

Answer 32

An insurance policy that provides protection against claims involving bodily injury & property damage to third parties.

Question 33

Hazard

Answer 33

A source of danger or vulnerability causing concern for the safety and security of individuals or property.

Question 34

Letter of Agreement (LOA)

Answer 34

Contract - Document outlining proposed services, space or products which becomes binding upon signature by authorized representatives of both parties. It lists services, food, beverages and so forth.

Question 35

Liability

Answer 35

A legal responsibility for an incident or monetary responsibility for services rendered.

Question 36

Liquidated Damages

Answer 36

An amount of money the parties of a contract designate during negotiations for the injured party to collect as compensation upon a specific breach of the agreement.

Question 37

Negotiation

Answer 37

A series of discussions between the buyer and seller that result in a contractual arrangement.

Question 38

Non-Performance

Answer 38

To neglect to carry out an agreement.

Question 39

Offer

Answer 39

A promise, proposal or other expression of willingness to make and carry out a contract under proposed terms with another party which has the ability to accept it upon receiving it. Space & rent proposal from a facility. It may be in the form of a contract or license agreement.

Question 40

Pandemic

Answer 40

A disease that is prevalent over an entire country or the world.

Question 41

Professional Liability Insurance

Answer 41

Protection for professionals with a special expertise that is not covered by the general liability insurance of an organization.

Question 42

Relocation/Walk-Clause

Answer 42

Clause protecting a guest holding a confirmed sleeping room reservation who is denied accomodations at the hotel upon arrival and is relocated to another hotel.

Question 43

Risk Assessment

Answer 43

A process designed to safeguard the organization and various elements of a meeting by minimizing the amount or severity of harmful events that may occur.

Question 44

Security Contractor (Security Service)

Answer 44

Company hired by exhibit or event management to keep individual exhibits and the entire event floor safe using guards, closed circuit T.V., etc.

Question 45

Threat

Answer 45

A source of danger or vulnerability causing concern for the safety and security of individuals or property; same as hazard.

Question 46

Waiver Clause

Answer 46

A clause that entitles both parties to take measurements to prevent or reduce loss without prejudice to the rights of either party.