Hospitality 320 - Hospitality Law » Fall 2019 » Quiz 1

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Question #1
Hospitality managers cannot be expected to know every law that exist in the hospitality industry. But what they must know is how to effectively manage their legal environment. Certain concepts they need to know include:
A.   It is possible to use the philosophy of preventive management to manage the legal environment and minimize the chances of litigation.
B.   Laws have an evolutionary nature, based on changes in society.
C.   Laws have historical origins, and the manager needs to know them
D.   all the above
Question #2
Regarding ethical analysis – if unsure if a decision one is about to make is ethical, certain questions can be asked, including: 
A.   all the above
B.   Would I publicize my action?
C.   Is it legal?
D.   Is it fair?
E.   Am I being honest?
Question #3
The term “litigation” means: The act of initiating and carrying on a lawsuit.
A.   TRUE
B.   FALSE
Question #4
The textbook defines “Hospitality Law” as: Those laws that relate to the industry involved with the provision of food, lodging, travel, meetings, events, and entertainment services to its guests, employees, vendors, and clients.
A.   FALSE
B.   TRUE
Question #5
It is considered impossible for a Hospitality Manager to know all the legal requirements that may apply to his or her operation. It IS possible, however, to take certain actions, including:  
A.   Stay abreast of changes in regulations that affect your segment of the industry.
B.   all the above
C.   Be aware of the major entities responsible for regulation.
D.   Be aware of the process for responding to an inquiry or complaint from a regulatory entity.
E.   Understand how to resolve conflicting regulations.
Question #6
The Hospitality industry is regulated by a variety of federal, state, and local governmental entities. Federal agencies include: 
A.   Food and Drug Administration (FDA)
B.   all the above
C.   Internal Revenue Service (IRS)
D.   Occupational Safety and Health Administration (OSHA)
E.   Equal Employment Opportunity Commission (EEOC)
Question #7
The Department of Justice is a Federal agency.
A.   FALSE
B.   TRUE
Question #8
The Department of Homeland Security is a Federal agency.
A.   FALSE
B.   TRUE
Question #9
Common Hospitality Organizational Structures include:  
A.   Sole Proprietorship
B.   all the above
C.   C Corporation
D.   General Partnership
E.   Limited Partnership
Question #10
Common Hospitality Operating Structures include: 
A.   all the above
B.   Owner-Operator
C.   Condo Hotels/Shared Services
D.   Franchise
E.   Management Contract
Question #11
Organizational structure is: The legal entity that owns a business.
A.   FALSE
B.   TRUE
Question #12
Operating structure is: The relationship between a business’s ownership and its management.
A.   TRUE
B.   FALSE
Question #13
Essential components that must be present to create a valid contract include:  
A.   Acceptance
B.   Consideration
C.   Offer
D.   all the above
Question #14
Legal acceptance of a contract may be established by: 
A.   Acceptance of partial or full payment
B.   Acceptance of a deposit
C.   Verbal or nonverbal agreement
D.   all the above
E.   Agreement in writing
Question #15
Regarding contracts, a “counter offer” is a conditional agreement to the terms and conditions of an offer that includes a change to those terms, creating a new offer.
A.   TRUE
B.   FALSE
Question #16
“Breach of Contract” does NOT mean failure to keep the promises of agreements of a contract. 
A.   TRUE
B.   FALSE
Question #17
Many of the contracts used in the Hospitality industry are very similar to those used in other industries. However, there are some contracts unique to the Hospitality industry, including: 
A.   Franchise-related Contracts
B.   all the above
C.   Meeting Space Contracts
D.   Group Lodging Contracts
E.   Management Operating Contracts
Question #18
According to the text, Meeting Professionals International (MPI) is the world’s largest association of meeting planning professionals with over 20,000 members. They offer educational services designed to help meeting professionals better manage their meeting planning business.  
A.   TRUE
B.   FALSE
Question #19
Meeting planners are professionals who plan and organize meetings and events for their employers and clients. They negotiate sleeping rooms, meeting space, and a multitude of services with hotels, convention centers, country clubs, restaurant, catering halls, and many other venues and vendors.
A.   FALSE
B.   TRUE
Question #20
Essential Clauses for providing products and services to guests include:
A.   Identification of Who is authorized to modify the contract
B.   Deposit and Cancellation policies
C.   Length of time the contract prices exists.
D.   all the above

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