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CCM Review Course > External Influences > Flashcards

External Influences Flashcards

1
Q

What are the elements for a valid claim for promissory estoppel?

A
  • A promise by the club
  • The club’s reasonable expectation that the promise would be relied upon
  • The individual’s actual reliance on the promise
  • Injury to the individual that cannot be avoided without enforcing the promise

Promissory estoppel is a legal doctrine that allows an individual to recover on a promise, even if a legally binding contract does not exist, if they relied on that promise to their detriment.

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2
Q

What documents govern all aspects of club affairs?

A

Membership documents

Membership documents determine member rights, privileges, corporate structures, operational matters, and financial structure.

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3
Q

What is the purpose of the Articles of Incorporation in a member-owned club?

A
  • Creates the corporation that owns the club facilities
  • Filed with the state’s Secretary of State
  • Includes club name and principal office address
  • States purpose and powers
  • Indicates for-profit or nonprofit status
  • Defines qualifications of membership
  • Specifies voting rights
  • Outlines governing board selection

The Articles of Incorporation are crucial for establishing the legal identity and structure of the club.

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4
Q

True or False: Income received from corporate members should be treated as non-member income for tax-exempt status as a social club.

A

True

This classification affects the club’s tax obligations and exemptions.

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5
Q

What issues can arise with Associate Members and Equity Members regarding facility use privileges?

A
  • Participation in Saturday member tournaments
  • Access to dining and swimming facilities
  • Involvement in club card games

These issues may lead to disputes over membership privileges.

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6
Q

What should membership documents clearly state regarding divorce or separation of members?

A
  • Both spouses are jointly liable for dues, fees, and charges
  • How title to a membership is determined upon divorce
  • Membership is not divisible for any reason
  • Membership is not transferable unless compliant with bylaws

Clarity in these matters is essential to avoid future disputes and legal challenges.

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7
Q

What are the essential components of a club’s grievance procedure?

A
  • Notice of hearing in advance (minimum of 15 days)
  • Advisement of charges against the member
  • Opportunity for the member to be present and heard
  • Opportunity to confront the accuser

These elements ensure due process in disciplinary actions.

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8
Q

What happens if a member is suspended or expelled from the club?

A
  • They may not use club facilities
  • Family members also face similar restrictions

These provisions help enforce club policies and maintain order.

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9
Q

What does the Civil Rights Act of 1964 prohibit?

A

Discrimination based on race, color, religion, or national origin in places of public accommodations

Private clubs were excluded from this definition, allowing them to maintain certain membership criteria.

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10
Q

How should a club respond to a sexual harassment claim?

A
  • Remove the employee making the claim from contact with the accused
  • Notify the club’s President of the allegations
  • Seek legal counsel if necessary

Prompt and thorough investigation is crucial to address such claims effectively.

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11
Q

Under what circumstances does the Americans with Disabilities Act (ADA) apply to private clubs?

A
  • Public events at the club (e.g., tournaments)
  • Functions open to the public

These situations require compliance with ADA accessibility standards.

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12
Q

What must portions of a club used by the public be?

A

Accessible and usable

This includes parking areas, entrances, restrooms, and other public spaces.

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13
Q

What does the ADA require clubs to do regarding policies and procedures?

A

Make reasonable modifications to afford accommodations to individuals with disabilities

Modifications should not fundamentally alter the nature of the club’s offerings.

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14
Q

What is the Duty of Care for Board Directors?

A
  • Fulfill their position responsibly
  • Avoid violating their duty
  • Foresee potential damages from negligence

Directors can be held liable for breaches of this duty.

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15
Q

What is the Business Judgment Rule?

A

Protects the Board if decisions are made in good faith, with deliberation, and in the club’s best interest

This rule provides a safeguard against legal liability for business decisions.

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16
Q

What type of insurance is typically purchased for club directors?

A

Directors and Officers Liability Insurance (D&O Insurance)

This insurance covers legal expenses and liabilities incurred by directors.

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17
Q

What is Apparent Authority in the context of contracting?

A

The assumption by a third party that an individual has the authority to sign a contract on behalf of the club

This concept is crucial for determining the validity of contracts made by club employees.

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18
Q

What are the classifications of people regarding premises liability?

A
  • Invitees
  • Licensees
  • Trespassers

Each classification has different legal implications for the landowner’s liability.

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19
Q

What is the definition of Tort Law?

A

A personal injury; injury to a person and/or that person’s property

Tort law encompasses various types of wrongs, including negligence and intentional harm.

20
Q

What is the difference between civil law and criminal law?

A

Civil law involves legal disputes between individuals; criminal law involves the state prosecuting an individual for a crime

This distinction is fundamental in understanding legal proceedings.

21
Q

What must a plaintiff prove in a negligence case?

A
  • Defendant’s duty of care
  • Breach of that duty
  • Proximate cause
  • Injury plus harm

Each element must be established to succeed in a negligence claim.

22
Q

What are the types of negligence?

A
  • Ordinary
  • Gross
  • Negligence per se
  • Strict liability

Each type varies in terms of legal implications and the burden of proof required.

23
Q

What are common potential problem areas for tort claims in clubs?

A
  • Lightning strikes
  • Slips and falls
  • Swimming pools
  • Theft

Clubs must be aware of these risks to mitigate liability.

24
Q

What are the two theories under which a club may be sued for serving contaminated food?

A
  • Tort theory
  • Contract theory

Both theories address different aspects of liability in food service.

25
Q

What is Privity of Contract?

A

Generally necessary to bring an action for breach of an implied contract

It indicates a contractual relationship between the parties involved.

26
Q

What is the Foreign-Natural Test in food law?

A

Determines whether an object found in food is foreign to the food or whether it might naturally be present

This test helps establish liability in food contamination cases.

27
Q

What are Truth-in-Menu Laws?

A

Laws prohibiting misrepresentations in menu descriptions, subjecting violators to fines

These laws promote transparency and honesty in food service.

28
Q

What do State Dram Shop Acts address?

A

Create a statutory cause of action against establishments serving alcohol to intoxicated persons

These acts hold clubs accountable for responsible alcohol service.

29
Q

What laws have some states adopted regarding menu descriptions?

A

Laws prohibiting misrepresentations in menu descriptions and food served, subjecting violators to fines.

30
Q

What is an example of a requirement for menu labeling?

A

‘Homestyle’ or ‘Homemade’ must be used for dishes prepared ‘from scratch’.

31
Q

If monosodium glutamate is used in a dish, what must be indicated?

A

It should be indicated on the menu.

32
Q

What must be accurately indicated about menu items?

A

The place of origin of an item.

33
Q

What are the elements of state Dram Shop Acts?

A
  • An unlawful sale
  • Of liquor or other alcoholic beverages
  • To an intoxicated person
  • Which causes injury to another party.
34
Q

What type of liability is based on common law theory of negligence?

A

Common law liability independent of any claim under a state’s Dram Shop Act.

35
Q

What are the four primary tax bases that taxes may be imposed on?

A
  • Income
  • Wealth
  • Transactions
  • People.
36
Q

Who primarily pays taxes on income?

A

Individuals and corporations.

37
Q

What taxes do clubs pay on unrelated business income?

A

Tax-exempt clubs pay taxes on unrelated business income.

38
Q

What are some types of taxes on wealth?

A
  • Property taxes
  • Estate and inheritance taxes
  • Gift taxes
  • Net wealth taxes.
39
Q

What types of taxes are imposed on transactions?

A
  • Sales tax
  • Value-added taxes
  • Turnover taxes
  • Excise taxes
  • Severance taxes.
40
Q

What is tax avoidance?

A

Planning a transaction to mitigate the tax impact or to avoid application of taxes completely.

41
Q

Is tax avoidance legal or illegal?

A

Legal.

42
Q

What is tax evasion?

A

Fraudulent denial or concealment of a current tax liability.

43
Q

Is tax evasion legal or illegal?

A

Illegal.

44
Q

What is the title of Debby Cannon?

A

Director.

45
Q

Where does Debby Cannon work?

A

Cecil B. Day School of Hospitality, Robinson College of Business, Georgia State University.

CCM Review Course (11 decks)

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