CRM Legal Compliance & Risk Management Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRM Legal Compliance & Risk Management flashcards as text
Which principle of risk management involves transferring financial risk to an insurance company through a policy?
Answer: Risk transfer
Risk transfer shifts the financial consequence of a loss from the restaurant to an insurer in exchange for premium payments.
A restaurant should maintain general liability insurance primarily to protect against:
Answer: Third-party bodily injury and property damage claims, such as a guest slipping on a wet floor
General liability insurance covers the restaurant's legal obligation to compensate third parties for injuries or property damage occurring on or because of the premises.
When a restaurant experiences a data breach that exposes guest credit card information, the manager must comply with:
Answer: PCI DSS (Payment Card Industry Data Security Standard) breach notification requirements
PCI DSS mandates that merchants report card data breaches to their acquiring bank and card brands and take immediate steps to contain the incident.
An I-9 Employment Eligibility Verification form must be completed for each new hire within:
Answer: Three business days of the employee's first day of employment
Federal law requires employers to complete Form I-9 within three business days of an employee's start date to verify identity and work authorization.
Which insurance coverage protects a restaurant if a guest becomes ill after eating contaminated food served at the establishment?
Answer: Product liability / food contamination insurance
Product liability or food contamination coverage specifically addresses claims arising from foodborne illness caused by food the restaurant prepared or served.
A restaurant manager implementing a crisis communication plan should designate which role as the sole spokesperson during a public health incident?
Answer: A single trained spokesperson, typically the manager or owner
A single designated spokesperson ensures consistent, controlled messaging during a crisis, reducing the risk of contradictory statements that escalate public concern.