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.   Laws have an evolutionary nature, based on changes in society.
B.   all the above
C.   It is possible to use the philosophy of preventive management to manage the legal environment and minimize the chances of litigation.
D.   Laws have historical origins, and the manager needs to know them
Question #2
Regarding ethical analysis – if unsure if a decision one is about to make is ethical, certain questions can be asked, including: 
A.   Is it fair?
B.   Am I being honest?
C.   all the above
D.   Would I publicize my action?
E.   Is it legal?
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.   all the above
B.   Understand how to resolve conflicting regulations.
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.   Stay abreast of changes in regulations that affect your segment of the industry.
Question #6
The Hospitality industry is regulated by a variety of federal, state, and local governmental entities. Federal agencies include: 
A.   Occupational Safety and Health Administration (OSHA)
B.   Equal Employment Opportunity Commission (EEOC)
C.   Internal Revenue Service (IRS)
D.   Food and Drug Administration (FDA)
E.   all the above
Question #7
The Department of Justice is a Federal agency.
A.   TRUE
B.   FALSE
Question #8
The Department of Homeland Security is a Federal agency.
A.   TRUE
B.   FALSE
Question #9
Common Hospitality Organizational Structures include:  
A.   Limited Partnership
B.   C Corporation
C.   General Partnership
D.   all the above
E.   Sole Proprietorship
Question #10
Common Hospitality Operating Structures include: 
A.   all the above
B.   Condo Hotels/Shared Services
C.   Franchise
D.   Owner-Operator
E.   Management Contract
Question #11
Organizational structure is: The legal entity that owns a business.
A.   TRUE
B.   FALSE
Question #12
Operating structure is: The relationship between a business’s ownership and its management.
A.   FALSE
B.   TRUE
Question #13
Essential components that must be present to create a valid contract include:  
A.   Offer
B.   all the above
C.   Consideration
D.   Acceptance
Question #14
Legal acceptance of a contract may be established by: 
A.   Verbal or nonverbal agreement
B.   Acceptance of partial or full payment
C.   Agreement in writing
D.   all the above
E.   Acceptance of a deposit
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.   FALSE
B.   TRUE
Question #16
“Breach of Contract” does NOT mean failure to keep the promises of agreements of a contract. 
A.   FALSE
B.   TRUE
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.   all the above
B.   Meeting Space Contracts
C.   Group Lodging Contracts
D.   Management Operating Contracts
E.   Franchise-related 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.   Length of time the contract prices exists.
C.   all the above
D.   Deposit and Cancellation policies

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