HAMG 1340 Midterm Hospitality Legal Issues

Question 1

1. What is the best definition of Litigation?

Answer 1

The act of initiating and carrying out a lawsuit

Question 2

2. What is the best definition of Civil Law?

Answer 2

A body of law created by government entities that are concerned with private rights and remedies as opposed to criminal matters.

Question 3

3. Where does the body of law known as Common Law descend from?

Answer 3

The Law of Great Britain

Question 4

4. The “S” in STEM stand for?

Answer 4

Selection of the correct employee for the job

Question 5

5. What does “Ethics” mean?

Answer 5

The behavior of an individual toward another individual or group

Question 6

6. Are Sixty to seventy percent of management decisions made on a daily basis have some type of legal dimension?

Answer 6

T - True

Question 7

7. As long as a manager has a good knowledge of the law, is it not very important to be concerned with attempting to prevent legal situations from arising?

Answer 7

F- False

Question 8

8. Is the hospitality industry is regulated by federal, state, and local government entities?

Answer 8

T - True

Question 9

9. When dealing with the Internal Revenue Service, do hospitality managers have the role of both taxpayer and tax collector?

Answer 9

T - True

Question 10

10. Does the IRS consider tips and gratuities given to employees by guests as taxable income?

Answer 10

F - False

Question 11

11. Is OSHA is concerned with safe and healthy working conditions?

Answer 11

T - True

Question 12

12. Do hospitality managers have the right to accompany OSHA compliance officers during an inspection?

Answer 12

F - False

Question 13

13. Does the EEOC only prohibit age discrimination officers for those who are 40 years of age or older?

Answer 13

T - True

Question 14

14. Does the Title VII of the Civil Rights Act of 1964?

Answer 14

A. Prohibits employers from discriminating against individuals because of their race / national origin.

B. Requires employees to reasonably accommodate the religious practices of an employee.

C. Requires investigations of complaints by employees who think they have been discriminated against.

D. All of the above

Question 15

15. Does a limited partnership, the limited partner has unlimited liability?

Answer 15

F - False

Question 16

16. Is a sole proprietorship is the most complex of all organizational structures?

Answer 16

F - False

Question 17

17. With a “C” corporation is the company liable for taxes on the corporation’s profits and shareholders are liable for taxes?

Answer 17

T - True

Question 18

18. Does the conduct of individual employees have a direct effect on the liability of a business?

Answer 18

T - True

Question 19

19. Are all tying arrangements are illegal?

Answer 19

F - False

Question 20

20. Which organizational structure is least desirable from a liability perspective?

Answer 20

General Partnership

Question 21

21. A type of business entity that offers liability protection to all owners and is exempt from taxation on its profits is…?

Answer 21

S Corporation

Question 22

22. Does a contract have to be in writing to be enforceable by the courts?

Answer 22

F - False

Question 23

23. Does a valid contract needs consideration flowing to both parties?

Answer 23

T - True

Question 24

24. It is the responsibility of the courts to decide the relative fairness of consideration.

Answer 24

F - False

Question 25

25. Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make the contract valid.

Answer 25

T - True

Question 26

26. The UCC is the acronym for the law regulating purchasing agreements, which gives protection to buyers, sellers, and financial lenders when goods are purchased under contract.

Answer 26

T - True

Question 27

27. “Consideration” in the hospitality industry is often related to …?

Answer 27

$$ money, use of property, the promise to act or not act

Question 28

28. The best way for a hotelier to indicate acceptance of an offer is which?

Answer 28

Agree to the offer in writing

Question 29

29. Fee/fees that is/are ordinarily paid by the franchisee to the franchisor?

Answer 29

Franchise application fee, Earning percentage (royalty fee), and Advertising participation (marketing fee)

Question 30

30. The exculpatory clause, seeks to put blame on, the hospitality operator in certain situations.

Answer 30

F - False

Question 31

31. Indemnification means to make one whole; to reimburse for a loss already incurred.

Answer 31

T - True

Question 32

32. Which of the following is a major element of management agreements:

Answer 32

A. Incentives fees earned or penalties assessed related to operating performance

B. Insurance requirements of the management company (who must carry the insurance and how much)

C. The control, if any, that the owner has in the selection or removal of the business’s management personnel.

D. All of the above.

Question 33

33. A Management agreement is a legal agreement that defines the responsibilities of a business owner and the management company that has chosen to operate the owner’s business.

Answer 33

T - True

Question 34

34. One of the most important components of conference services contracts is the language used to establish and assign responsibility for the group’s ______.

Answer 34

Master Bill

Question 35

35. Personal property could be considered all property that is not real property.

Answer 35

T - True

Question 36

36. Using a copyrighted work for teaching or research is normally not an infringement of copyright.

Answer 36

T - True

Question 37

37. Chattel is considered real property.

Answer 37

F - False

Question 38

38. Money, stocks, and interests in securities are examples of intangible property.

Answer 38

T - True

Question 39

39. Regarding personal property, ownership is generally assumed by its possession, and it is not customary for the seller to prove their ownership rights.

Answer 39

T - True

Question 40

40. A grant issued by a government entity ensuring an inventor the right to exclusive production and sale of their invention is a?

Answer 40

Patent

Question 41

41. The procedure, that a lessor uses to remove a lessee from physical possession of the leased real property, usually for violation of a significant lease provision, is called?

Answer 41

Eviction

Question 42

42. The Fair Labor Standards Act protects young workers from employment that might interfere with their educational opportunities.

Answer 42

T - True

Question 43

43. It is not the best practice for a human resource manager while conduct an interview, to ask if the candidate has a criminal record.

Answer 43

F - False

Question 44

44. It is legal for the company to search a locker assigned to personnel, either randomly, or with suspicion of inappropriate conduct.

Answer 44

T - True

Question 45

45. It is critical to show each component of the qualifications required to fulfill a particular job description.

Answer 45

T - True

Question 46

46. Candidates who smoke are protected from habit-based discrimination when applying for a job

Answer 46

F - False

Question 47

47. What would ordinarily be classified as “Bona Fide Occupational Qualification?

Answer 47

Education, modification, and Licensing

Question 48

48. Which two perspectives does the job description serve?

Answer 48

Operational and Legal

Question 49

49. What is considered “applicant screening?”

Answer 49

Interview, Testing, and Background Check

Question 50

50. Is it illegal for the interview of a company to ask the person’s religion to find out if they need to take “special days” off from work?

Answer 50

T - True