TMC - Tourism Management Certificate Hospitality Law and Ethics Questions and Answers — Questions and Answers
Question 1: A guest at a resort slips and falls on a recently mopped floor in a hallway that had no "wet floor" sign posted. Under hospitality law, the resort has likely breached its legal obligation known as the:
- Fiduciary duty to maximize guest assets
- Contractual duty of guaranteed safety
- Duty of reasonable care to prevent foreseeable harm (Correct answer)
- Absolute duty to insure against all injuries
Correct answer: Duty of reasonable care to prevent foreseeable harm
Hotels and other lodging establishments have a legal responsibility, known as the duty of reasonable care, to protect guests from foreseeable harm. [2, 6] This includes inspecting the premises for dangers, maintaining the property in a safe condition, and warning guests of any known hazards that cannot be immediately fixed. [7] A wet floor is a foreseeable hazard, and failing to place a warning sign is a clear breach of this duty.
Question 2: State laws that hold a bar or restaurant liable for injuries caused by an intoxicated patron they continued to serve are called:
- Dram Shop Acts (Correct answer)
- Innkeeper's Liability Statutes
- Truth in Menu Laws
- Premises Liability Doctrines
Correct answer: Dram Shop Acts
Dram Shop Acts are laws that allow victims of accidents caused by an intoxicated person to sue the business that served the alcohol. [1, 8] These laws aim to hold establishments accountable for over-serving patrons who are visibly intoxicated or are minors. [1, 5]
Question 3: A hotel has intentionally overbooked its rooms, anticipating no-shows. When more guests arrive than there are available rooms, the hotel must "walk" a guest who has a guaranteed reservation. What is the hotel's primary legal and ethical obligation to this guest?
- Offer a full refund for the reservation and a formal apology.
- Provide a voucher for a significant discount on a future stay.
- Explain that overbooking is a standard industry practice and the reservation is not a guarantee.
- Arrange and pay for a comparable room at a nearby hotel, including transportation costs. (Correct answer)
Correct answer: Arrange and pay for a comparable room at a nearby hotel, including transportation costs.
A guaranteed reservation is considered a contract. By failing to provide the promised room, the hotel has breached the contract. The standard and legally required remedy is to mitigate the guest's damages by securing and paying for a comparable accommodation elsewhere, along with any necessary transportation. [21, 24] This is the industry standard for handling a "walk" situation.
Question 4: To successfully limit its liability for the loss of a guest's valuables, which of the following is a critical step a hotel must take according to most state innkeeper's statutes?
- Have every guest sign a liability waiver upon check-in.
- Post a conspicuous notice of limited liability and provide a safe for guest use. (Correct answer)
- Employ a full-time security staff to monitor all public areas.
- Require guests to declare the value of all personal items.
Correct answer: Post a conspicuous notice of limited liability and provide a safe for guest use.
Innkeeper's statutes allow hotels to limit their common law liability for guest valuables if they strictly follow specific procedures. [14, 16] These almost universally require the hotel to post notices in conspicuous places informing guests of the limited liability and to provide a safe or vault for them to store their money, jewelry, and other valuables. [15, 22]
Question 5: Which of the following is the best example of a "reasonable modification" a hotel must make to its policies under the Americans with Disabilities Act (ADA)?
- Providing personal care services, such as assisting a guest with dressing or eating.
- Allowing a guest with a disability to bring their trained service animal into the hotel restaurant, even if there is a "no pets" policy. (Correct answer)
- Fundamentally altering its business model to cater exclusively to guests with disabilities.
- Undertaking a complete architectural renovation of the property if a guest finds it inconvenient.
Correct answer: Allowing a guest with a disability to bring their trained service animal into the hotel restaurant, even if there is a "no pets" policy.
The ADA requires public accommodations to make reasonable modifications to policies and practices to afford equal access to individuals with disabilities. [13, 17] A key example is modifying a "no pets" policy to allow a service animal. [13] This is considered reasonable because it does not fundamentally alter the nature of the business or create an undue burden, unlike providing personal care services or undertaking massive renovations that are not "readily achievable." [27]
Question 6: A restaurant manager learns that a popular chef has been secretly substituting a lower-cost fish for the premium "Red Snapper" listed on the menu to improve food cost percentages. This action is best described as:
- A clever cost-control strategy.
- Both unethical and a violation of "truth in menu" laws. (Correct answer)
- Unethical, but legal as long as the guest doesn't complain.
- Legally permissible if the substitute fish is of similar quality.
Correct answer: Both unethical and a violation of "truth in menu" laws.
This action is unethical because it involves deceiving customers. It is also illegal, as it violates "truth in menu" laws, which require that the food served is exactly what is described on the menu. Misrepresenting a type of fish is a direct violation of these regulations, which are designed to protect consumers.
A guest at a resort slips and falls on a recently mopped floor in a hallway that had no "wet floor" sign posted.
Under hospitality law, the resort has likely breached its legal obligation known as the: