Barth 5th Edition Test Bank - Hospitality Law 5th Edition Test Bank with Answer Key by Stephen C. Barth. DOCX document preview.

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Barth 5th Edition Test Bank

Test Bank for 5th Edition

Chapter 1: PREVENTION PHILOSOPHY

  1. Which of the following is a way to become a positive manager and build employee loyalty?
    1. Raise employee morale and self-esteem
    2. Not focus on turnover
    3. Keep customer satisfaction
    4. Remember that the bottom line is the most important factor
  2. The legal principle of following prior case law is known as ____.
    1. Litigation
    2. strict liability
    3. stare decisis
    4. administrative law
  3. The goal of STEM is to ________.
    1. Find the best employees.
    2. hire only the employees who will reduce turnover.
    3. reduce employee mistakes.
    4. none of the above.
  4. Under the Federal law, what does the acronym known as “ADA” stand for?
    1. American Dietetic Association
    2. American Dental Association
    3. Americans with Diabetes Act
    4. Americans with Disabilities Act
  5. An effective way to reduce claims being filed against your hotel or restaurant is to provide _____.
    1. well-trained employees
    2. exceptional customer service
    3. a safe and secure property
    4. all of the above
  6. ~The best definition of litigation is?
    1. When a lawsuit ends
    2. The bargaining between management and union representatives
    3. A lawsuit between the government and a hospitality manager
    4. The act of initiating and carrying out a lawsuit
  7. The best definition of Civil Law is?
    1. All legal action that occurs based on laws that were written before the Civil War
    2. Derived from common law
    3. Is interested in precedent, or what has been decided in previous court cases with similar situations
    4. A body of law created by government entities that are concerned with private rights and remedies as opposed to criminal matters
  8. The body of law known as Common Law descends from?
    1. The founding fathers of our country
    2. The laws of Great Britain
    3. Middle ages laws
    4. The minds of Thomas Jefferson and George Washington
  9. The 'S' in STEM stands for?
    1. Selection of the correct employee for the job
    2. Selection of wholesome foods so the guests stay healthy
    3. Selection of the best property to get the most profit from the company's investment
    4. Selecting employees at the last minute to fill open, but necessary positions
  10. "Ethics" means?
    1. The legal way to hire employees
    2. The behavior of an individual toward another individual or group
    3. The rights of an employer over their employees
    4. If something is legal, it is also ethical
  11. Sixty to seventy percent of management decisions made on a daily basis have some type of legal dimension.

True
False

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

True
False

  1. The best way to provide an environment conducive to positive motivation is to establish trust and respect with your employees.

True
False

  1. It is more effective and efficient to find your employees doing something wrong, than to find them doing something right in the workplace.

True
False

  1. When an employee makes a mistake at work, it is often the result of management error or improper training.

True
False

  1. Training and Education is only necessary for newly hired employees.

True
False

  1. Common Law and Criminal Law are the two major systems in place in the Western world.

True
False

  1. Hyatt’s Code of Business Conduct and Ethics provides provisions against kickbacks and referral fees.

True
False

  1. In dealing with foreign entities, a written agreement is helpful but often difficult to enforce.

True
False

  1. One of the core values of Meeting Expectations is the expectation of complete honesty and gossip is not tolerated.

True
False

 

Chapter 2: GOVERNMENT AGENCIES THAT IMPACT THE HOSPITALITY INDUSTRY

  1. Which of the following is one of the missions of the Department of Homeland Security?
    1. Terminate transportation security systems to move people and cargo more securely and efficiently.
    2. Change border security and interior enforcement and discard immigration processes.
    3. Safeguard the American people, our homeland and our values.
    4. Realign the DHS organization to slow down mission performance.
  2. Title VII of the Civil Rights Act of 1964
    1. Prohibits employers from discriminating against individuals because of their race/ national origin
    2. Requires employers to reasonably accommodate the religious practices of an employee or prospective employee
    3. Requires investigations of complaints by employees who think they have been discriminated against
    4. All of the above would be appropriate.
  3. Upon notification from a government agency of a complaint or violation, the appropriate thing to do is?
    1. Document the date and time all paperwork is received and be sure to check all correspondence for required deadlines
    2. Assess the severity of the complaint and determine if legal consultation is necessary
    3. Develop an action plan with or without an attorney
    4. All of the above would be appropriate
  4. The FDA is responsible for
    1. Ensuring the proper labeling of food and the safety of food.
    2. Preventing discrimination in the workplace.
    3. Enforcing the federal laws governing the manufacture and sale of alcohol.
    4. None of the above are appropriate.
  5. The EEOC requires businesses to _____.
    1. File quarterly reports for tax purposes.
    2. Treat employees in a non-discriminatory manner.
    3. Display notices on employee rights and safety in places where they can easily be read.
    4. All of the above would be appropriate.
  6. Which of the following agencies was established to foster, promote and develop the welfare of the wage earners of the United States?
    1. Family Medical Leave Act.
    2. Pensions and Welfare Bureau
    3. INS
    4. Department of Labor
    5. Department of Justice
  7. When regulatory legal demands conflict (such as state and federal laws) which law will prevail?
    1. The federal law because it is the law of the land.
    2. The most restrictive regulation will prevail.
    3. The person is free to choose whoever law it wants without significant consequences.
    4. None of the above are appropriate.
  8. The Department of Labor is responsible for _____.
    1. Wage and hour complaints, including overtime payment disputes.
    2. Filing grievances as a result of sexual harassment in the workplace.
    3. Making sure employers properly display SDS in the workplace.
    4. Enforcing anti-discrimination policies in the workplace.
  9. EPA stands for _______.
    1. Environmental Protection Association
    2. Environmental Protection Agency
    3. Equal Protection Act
    4. Endangered Protection Act
  10. What is the primary function of OSHA?
    1. `To oversee and prevent discrimination in the work place
    2. To communication with Homeland Security on potential threats.
    3. To enforce the Equal Pay Act.
    4. To enforce the collection of state taxes.
    5. None of the above are appropriate.
  11. The hospitality industry is regulated by federal, state and local government entities.

True
False

  1. When dealing with the Internal Revenue Service, hospitality managers have a role of both taxpayer and tax collector.

True
False

  1. The IRS does not consider tips and gratuities given to employees by guests or patrons as taxable income.

True
False

  1. OSHA is concerned with safe and healthy working conditions.

True
False

  1. Hospitality managers should never accompany OSHA compliance officers during an inspection in order to avoid any influence over the officer’s observations.

True
False

  1. The EEOC only prohibits age discrimination for those who are 40 years of age or older.

True
False

  1. In situations where federal, state and local laws conflict with one another, the federal law must be followed.

True
False

  1. A Safety Data Sheet (SDS) is the document generated to inform the EEOC of all the chemicals that you keep on your property.

True
False

  1. It is the function of the TTB to regulate permits for producers of alcohol and ensure labeling protects consumers.

True
False

  1. Under the U.S. immigration system, the two main immigration categories include family-based immigration and employment-based immigration.

True
False

Chapter 3: HOSPITALITY BUSINESS STRUCTURES

  1. The type of relationship in hospitality which is known as the employer-employee relationship is also called _________.
    1. The Master-Servant Relationship
    2. The Agent-Principal Relationship
    3. The Employer/Independent Contractor
    4. The Agent-Agency Relationship
  2. Which of the following organizational structures is least desirable from a liability perspective?
    1. Limited partnership
    2. General partnership
    3. “S” corporation
    4. Limited liability company
  3. A type of business entity that offers liability protection to all owners and is exempt from taxation on its profits is?
    1. Sole proprietorship
    2. “C” corporation
    3. “S” corporation
    4. Limited partnership
  4. Under the principal/agent relationship theory, an agent _____.
    1. Must agree to all terms in the contract.
    2. Will have a fiduciary responsibility to the principal.
    3. Cannot work on any other projects for other principals.
    4. Is only obligated to perform in accordance with the exact terms contained in the written agreement.
  5. The least complex of all organizational structures is _______.
    1. Joint Venture
    2. Sole Proprietorship
    3. “S” Corporation
    4. Limited Liability Company
  6. Organizations operating a business under an assumed name or a trade name _______.
    1. Need only make sure all tax filings have both names.
    2. Should file a certificate disclosing the ownership structure of the organization.
    3. Must include the phrase “Incorporated” in the name.
    4. Don’t need to worry about infringement suits.
  7. The owners of a corporation are called _____.
    1. Investors
    2. Members
    3. Lenders
    4. Shareholders
  8. The legal entity which is taxed twice, once when revenue is earned and then again when the profits are distributed to the owners is known as ____.
    1. “C” Corporation
    2. Limited Liability Company
    3. Limited Partnership
    4. Joint Venture
  9. The earliest known franchisor was _______.
    1. McDonald’s Corporation
    2. Hershey’s
    3. Holiday Inn
    4. Singer Sewing Machine Company
  10. Two advantages of owning a franchise as a franchisee include ____.
    1. Perceived quality of the brand and payment of high royalty fees.
    2. Greater ability to secure financing and mandatory disclosures by the franchisor.
    3. Known brand and lack of control over operating standards.
    4. Legal assistance by franchisor and available on-site training from franchisor.
  11. In a limited partnership, the limited partner has unlimited liability.

True
False

  1. The fees charged to a hotel owner to manage a hotel by a hotel management company commonly ranges between 1% - 5% of the hotel’s monthly gross revenue.

True
False

  1. A sole proprietorship is the safest legal entity for a new business owner to create as it includes limited liability from negligence claims.

True
False

  1. The conduct of individual employees has a direct effect on the liability of a business.

True
False

  1. The owners of a LLC are called members.

True
False

  1. REITs must pay corporate income tax and state income tax.

True
False

  1. Limited liability companies are formed under federal and not state law.

True
False

  1. Owner-operator is a type of operating structure in which the owners of a business are directly responsible for its day-to-day operation. Also known, in some cases, as an “independent.”

True
False

  1. The applicable law that governs a business entity is determined by where that entity, say a corporation, has filed its creation documents.

True
False

  1. A hybrid hotel consists of condos, typically full-time residences, as well as traditional hotel rooms.

True
False

 

Chapter 4: BUSINESS CONTRACTS

  1. "Consideration" in the hospitality industry is often?
    1. Money
    2. Use of property
    3. The promise to act or not act
    4. All of the above.
  2. The best way to ensure legal protection for a hotelier and to indicate acceptance of an offer is?
    1. Verbal or non-verbal agreement
    2. Acceptance of a deposit
    3. Acceptance of partial or full payment
    4. Agree to the offer in writing
  3. The Latin phrase "Caveat Emptor" in the hospitality industry refers to?
    1. The burden of determining the quality and price of a product falls to the buyer
    2. The burden of determining the quality and price of a product falls to the seller
    3. The burden of determining the quality and price of product is decided by the courts
    4. There is no burden to determine the quality and price of a product
  4. The Uniform Commercial Code requires you to?
    1. Contribute to the cost of your employees' uniforms
    2. Ensure that all of your establishment's commercials contain a similar theme and logo
    3. Fulfill any promises made in a purchasing or sales contract
    4. To place "wholesaler" identity code on all products received in the event that a problem arises in the future
  5. "Capacity to contract" means?
    1. The building has enough space to house the purchased product or service
    2. The individuals creating a contract must meet minimum age and mental requirements in order to make the contract legal
    3. The business must not receive more contracts than it is capable of fulfilling, i.e., no overbooking
    4. The parties must contract according to the limitations of the law
  6. When drafting a hospitality contract, you should do all of the following except ______.
    1. Get it in writing.
    2. Keep copies of all documents.
    3. Get the best deal possible, even if your actions are somewhat ethically questionable.
    4. Resolve ambiguities as quick and fair as possible.
    5. None of the above appropriate.
  7. An enforceable contract contains an offer, an acceptance and _______.
    1. a promise to do something
    2. it must be in writing
    3. consideration
    4. a bi-lateral agreement
    5. a uni-lateral agreement
  8. In a lawsuit, the person or entity against which litigation is initiated is known as the ______.
    1. Defendant
    2. Opposite Party
    3. Litigant
    4. Plaintiff
    5. Respondent
  9. In a lawsuit, the person or entity that initiates litigation against another is known as the _____.
    1. Defendant
    2. Opposite Party
    3. Litigant
    4. Plaintiff
    5. Respondent
  10. The two most common types of dispute resolution alternatives are
    1. Litigation and settlement
    2. Arbitration and mediation
    3. Mediation and small claims court
    4. Mediation and litigation
    5. None of the above is appropriate.
  11. All contracts, whether verbal or written, must be for a legal purpose and in order to be enforceable, must consist of an offer, acceptance and consideration.

True
False

  1. A contract has to be in writing to be enforceable by the courts.

True
False

  1. A valid contract needs consideration flowing to both parties.

True
False

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

True
False

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

True
False

  1. 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.

True
False

  1. In all cases, it is unlawful to breach a contract.

True
False

  1. The UCC is the acronym for the laws regulating purchase and sale agreements for land, which gives protections only to buyers.

True
False

  1. When drafting international contracts, it is wise to provide for a dispute resolution format with a provision that has senior executives trying to resolve disputes first.

True
False

  1. The Foreign Corrupt Practices Act is a law that applies to U.S. companies when doing international transactions with non-U.S. business partners.

True
False

Chapter 5: SIGNIFICANT HOSPITALITY CONTRACTS

1. One of the most important components of conference services contacts is the language used to establish and assign responsibility for the group’s _________.

A. Room size

B. Master Bill

C. Food and Beverage order

D. None of the above

2. Which of the following is not an advantage when purchasing a franchise?

A. Obtain a proven concept

B. National name recognition

C. National advertising support

D. Sensitivity to menu items for local clientele

3. Which of the following represents a fee that is ordinarily paid by the franchisee to the franchisor?

A. Franchise application fee

B. Earnings percentage (royalty fee)

C. Advertising participation (marketing fee)

D. All of the above.

4. Which government agency regulates unfair or deceptive trade practices in the offering of franchises?

A. Federal Trade Commission

B. Department of Franchise Offerings and Securities

C. Department of Justice

D. Attorney General

E. Franchise Enforcement Commission

5. A well drafted conference service contract will contain a provision for cancellation by the group. If a group decreases the number of contracted attendees, this is known as _____ and a provision should also be stated in the conference service contract.

A. Merger

B. Arbitration

C. Mitigation of damages

D. Attrition

6. Which of the following is a major element of management agreements?

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.

7. A hospitality manager may be responsible for which type of legal agreement(s)?

A. Franchise Agreements

B. Management Agreements

C. Supply Agreements

D. Employment Agreements

E. All of the above.

8. Signs such as “Swim at Your Own Risk” would be a good example of what type of contractual provision?

A. Merger Clause

B. Adhesion Clause

C. Exculpatory Clause

D. Indemnification Clause

9. The person or business that has sold and/or granted a franchise is the _______.

A. Franchisee

B. Franchisor

C. Management Company

D. Licensee

10. Attrition in hospitality means ______.

A. The loss of previously estimated guest counts

B. The parties do not have a meeting of the minds.

C. The contract is illegal and thus unenforceable.

D. The scheduled function has relocated to another city.

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

True

False

12. An operating agreement is the same document as a management agreement.

True

False

13. A well-developed group lodging contact will include detailed language about a variety of items including how room rates will be calculated if the contract is signed prior to the establishment of the group’s final room rates.

True

False

14. In the lodging industry, payment can be made if the hotel agrees to directly bill the company or group for all the charges.

True

False

15. Exculpatory clauses seek to put blame on the hospitality operator in certain situations.

True

False

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

True

False

17. According to the law, franchisors must provide potential investors with a basic disclosure document and are required to guarantee a profit to the franchisee in the third year of the franchise operation.

True

False

18. Franchisors are not required to disclose the restrictions on what the franchisee may sell in the franchise business and how it may be sold.

True

False

19. The Federal Trade Commission is tasked with verifying the information contained in all disclosure documentation provided by the franchisor to a prospective franchisee.

True

False

20. The country of China strictly prohibits franchising by businesses.

True

False

Chapter 6: LEGALLY MANAGING PROPERTY

  1. A grant issued by a governmental entity ensuring an inventor the right to exclusive production and sale of their invention is a?
    1. Copyright
    2. Patent
    3. Trademark
    4. Public domain
  2. The procedure, which a lessor uses to remove a lessee from physical possession of leased real property, usually for violation of a significant lease provision, is called?
    1. Termination
    2. Delinquency
    3. Default
    4. Eviction
  3. Which of the following terms is used when dealing with both real property and personal property?
    1. Deed
    2. Lease
    3. FOB (Free On Board)
    4. UCC
  4. Which one of the following is the formal document used to transfer ownership of personal property?
    1. Deed
    2. Title
    3. Bill of sale
    4. Lien
  5. Some common instances where title insurance has protected a buyer include the following except?
    1. Forgery
    2. B. Improper court proceedings
    3. C. Survey mistakes
    4. D. Liens of record.
  6. Which of the following is a review of land records to determine the ownership and description of a piece of real property?
    1. Title Search
    2. Deed
    3. Grant
    4. Public Domain
  7. Which of the following legal documents would not be used by a lender to secure collateral for a loan to buy a restaurant?
    1. Mortgage
    2. Deed of Trust
    3. Quitclaim Deed
    4. UCC-1 Financing Statement
    5. Deed to Secure Debt
  8. A Quitclaim Deed _____.
    1. Has no legal consequence.
    2. Is use to transfer title to real property with no warranties of title.
    3. Is used to transfer title to real property with full warranties of title.
    4. Is obsolete and no longer used in modern real estate transactions.
  9. Title insurance on real property is designed to protect _____.
    1. The buyer
    2. The seller
    3. Missing heirs
    4. Future owners
  10. Which of the following is the formal legal document used to transfer ownership of personal property?
    1. Warranty Deed
    2. Mortgage
    3. Bill of Sale
    4. UCC-2 Financing Statement
  11. Personal property could be considered all property that is not real property.

True
False

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

True
False

  1. Chattel is considered real property.

True
False

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

True
False

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

True
False

  1. A Deed of Trust is real property that is pledged to secure the repayment of a debt.

True
False

  1. The most common type of rental or lease payments in hospitality is the triple-net lease where the lessee pays for all associated costs of leasing.

True
False

  1. An example of trade dress would be the unique turquoise colored boxes used by Tiffany’s stores.

True
False

  1. The Lanham Act is the major federal law that deals with leasing real property.

True
False

  1. U.S. hotel companies seeking to register trademarks and service marks in foreign countries must go through the task of registering the marks in each and every jurisdiction it intends to use the marks because there are no short-cuts when it comes to registrations.

True
False

Chapter 7: LEGALLY SELECTING EMPLOYEES

  1. Which of the following would not ordinarily be classified as "Bona Fide Occupational Qualification?"
    1. Gender
    2. Education
    3. Certifications
    4. Licensing
  2. Which two perspectives does the job description serve?
    1. Personal and professional perspective
    2. Operational and legal perspective
    3. Hotel and restaurant perspective
    4. Physical and mental perspective
  3. Which of the following is not considered "applicant screening?"
    1. Interview
    2. Testing
    3. Background check
    4. Staffing
  4. All of the following statements are true, except which one?
    1. Title VII of the Civil Rights Act of 1964, as amended, applies to employers with 25 or more employees who are engaged in interstate commerce.
    2. Discrimination based on sex includes pregnancy and childbirth.
    3. The EEOC investigates complaints by employees who allege discrimination in the workplace.
    4. None of the above are true.
    5. All of the above are true.
  5. Which is one of the three different groups of individuals who are protected under the ADA:
    1. An individual with a physical or mental impairment that somewhat limits a minor life activity.
    2. A person who may have a disability but has no written record of one.
    3. A person who is “regarded as” having a disability.
    4. An individual who cannot see well without the aid of contacts or glasses.
  6. All of the following are questions you can never ask a prospective employee for a bartender position during a job interview, except ______.
    1. Have you ever been treated for drug addiction?
    2. Are you over the age of 18?
    3. Do you have any physical defects or impairments?
    4. Do you have children?
  7. A job qualification, established in good faith and fairness that is necessary to safely or adequately perform the job is known as a _____.
    1. English speaking only rule
    2. Job attributes
    3. Safety Qualifications
    4. BFOQ
  8. Which of the following classifications is currently not a protected party under the federal law Title VII of the Civil Rights Act of 1964, as amended?
    1. Religion
    2. Disability
    3. Age
    4. Sexual Orientation
    5. Gender
  9. Which federal law is designed to protect employees from discrimination based on genetic information of the candidate or the candidate’s family?
    1. ADEA
    2. IRCA
    3. GINA
    4. ADA
  10. A labor union contract is also known as a ______.
    1. Facilitation agreement
    2. Enforcement agreement
    3. Union agreement
    4. Collective bargaining agreement
  11. The Fair Labor Standards Act protects young workers from employment that might interfere with their educational opportunities.

True
False

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

True
False

  1. Employers may not discipline employees in retaliation for any type of protected activity that takes place in the workplace.

True
False

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

True
False

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

True
False

  1. It is illegal for the interviewer of a company to ask the person's religion to find out if they need to take "special days" off from work.

True
False

  1. Negligent Hiring is a failure on the part of an employer to exercise reasonable care in the selection of employees.

True
False

  1. The concept of “employment at will” does not exist in Canada.

True
False

  1. All states have child labor laws.

True
False

  1. Hospitality employers, under federal law, must undertake background checks on all employees or be subject to fines from the Department of Homeland Security.

True
False

Chapter 8: LEGALLY MANAGING EMPLOYEES

  1. The Family Medical Leave Act of 1993 grants an eligible employee up to a total of 12 workweeks of unpaid leave for?
    1. The birth or placement of a child for adoption or foster care
    2. The care of an immediate family member with a serious health condition
    3. Medical leave when the employee is unable to work because of a serious health condition
    4. All of the above.
  2. An employee manual should contain which of the following policies?
    1. Disciplinary process
    2. Payroll deductions
    3. Anti-harassment and anti-discrimination
    4. Employers right to modify policies
    5. All of the above are appropriate.
  3. An employer may not ordinarily legally terminate an employee if it is done?
    1. As a result of documented progressive discipline
    2. To deny accrued benefits
    3. Because of legitimate illness or absence from work
    4. A and B
    5. B and C
  4. A particular employee monitoring technique is legal only if:
    1. The employee had a legitimate expectation of privacy, for example, in a restroom
    2. The monitoring was performed for work and non-work related purposes
    3. It was performed in a non-discriminatory manner
    4. The employees were not aware of the monitoring
  5. Which of the following is correct?
    1. FUTA requires employers and employees to make a tax contribution.
    2. FICA is a state law that funds Medicare programs.
    3. WOTC allows employers to have a tax credit for hiring unemployed veterans.
    4. ACA provides better coverage than Obamacare.
  6. To protect employers from employees who unlawfully use company information to further their own interests, employers should ____.
    1. Label all proprietary documents as confidential.
    2. Restrict employee access to sensitive company information.
    3. Add a policy to the employee manual limiting the use and disclosure of company confidential information.
    4. All of the above.
  7. The federal law known as USERRA was enacted to _______.
    1. provide a guaranteed right for parents to take time off from work for maternity and/or paternity leave.
    2. established child labor standards in the workplace.
    3. protect the rights of those employees who voluntarily or involuntarily leave work to go into the military.
    4. allow employers to purchase liability insurance that covers illegal acts of discrimination.
  8. A hospitality manager may require employees to sign a non-solicitation agreement, which prohibits the employees from _____.
    1. recruiting, soliciting or hiring away fellow employees.
    2. selling Girl Scout cookies in the break room.
    3. giving less than 2 weeks-notice of resignation from employment.
    4. None of the above are appropriate.
  9. If two employees in a large restaurant company tell offensive jokes to each other in the workplace which of the following is true:
    1. employees who overhear the jokes may have a claim against their employer for a hostile work environment.
    2. the joke telling employees will not be held accountable if they did not mean to offend anyone since intent to harm is one of the key elements of the claim.
    3. since the offending employees did not touch anyone, they will not be legally liable.
    4. private conversations are just that….private.
  10. Which of the following statements are untrue?
    1. An employee who quits his or her job for a non-work related reason is eligible for unemployment benefits.
    2. An employee who is terminated, except for good cause in connection with their work performance, is generally eligible for unemployment benefits.
    3. An employee who is terminated for habitual lateness or excessive absences on the job does not qualify for unemployment benefits.
    4. An employee who is fired from his or her job based on drinking alcohol during work hours will be denied unemployment benefits.
  11. Employee manuals should be kept up to date, and should clearly state that it is the employee who retains the right to revise the manual.

True
False

  1. Quid pro quo sexual harassment is when a perpetrator, through language or conduct, creates an intimidating or hostile working environment for individuals of a particular gender.

True
False

  1. Third party sexual harassment occurs when someone outside the workforce harasses an employee, or is harassed by an employee.

True
False

  1. When a complaint is lodged, or when inappropriate activity is brought to the attention of management, the manager should wait to see if the charge is proven, and only then take action to investigate the charge.

True
False

  1. Companies have the right to establish rules and policies for their workplace, so long as those rules do not violate the law.

True
False

  1. Upon return from FMLA leave, an employee does not ordinarily have to be re-instated in his original job or an equivalent one.

True
False

  1. Vicarious Liability is being responsible for your own acts which result in an injury, harm, or damage to others.

True
False

  1. The Lily Ledbetter Fair Pay Act of 2009 was enacted primarily to allow for equal pay to be paid to men and women for equal work.

True
False

  1. Discrimination against marital status by an employer is a federally protected right under Title VII of the Civil Rights Act of 1964, as amended.

True
False

  1. In many countries overseas, employers do not have the luxury of “employment at will” and may be prohibited from terminating the employment relationship.

True
False

Chapter 9: YOUR RESPONSIBILITIES AS A HOSPITALITY OPERATOR

  1. “Duty of Care” in the hospitality industry is best defined as:
    1. Upgrading to the next category of room, if available
    2. Having a comprehensive “Guest Loyalty” policy
    3. A legal obligation that requires a standard of conduct
    4. Having trained medical personnel on property at all time
  2. Which of the following is a “Theory of Liability?”
    1. Reasonable Assumption
    2. Torts
    3. Personal Injury
    4. Limited Liability
  3. A “tort” is:
    1. A fruit-filled dessert pastry
    2. A civil wrong committed against an individual or entity
    3. A warning sign to indicate a wet floor
    4. None of the above.
  4. The best example of “strict liability” in a restaurant would be?
    1. A poorly-lit parking lot
    2. An unqualified employee
    3. The sale of defective food or beverages
    4. A valet attendant with an expired license
  5. If a guest were to slip and fall in a puddle where there was not a wet-floor sign, or other reasonable indication of danger, then the hotel has likely committed:
    1. A tort
    2. A criminal infraction
    3. A breach of written contract
    4. A superior knowledge violation
    5. A premises liability infraction
  6. Under which theory of liability would a severely injured guest who allegedly slipped on some liquid on the floor in your restaurant file in his or her lawsuit?
    1. Negligence
    2. Comparative Negligence
    3. Contributory Negligence
    4. Breach of Contract
    5. Strict liability
  7. A guest in your restaurant leaves angry because his steak was incorrectly cooked. He has a wreck on the way home injuring himself and others, then threatens to sue the restaurant. What necessary element is probably missing in this case to substantiate negligence?
    1. duty of care
    2. assumption of risk
    3. substantial injuries
    4. proximate cause
    5. \third-party liability
  8. Intentional torts include all of the following except ____.
    1. assault
    2. intentional infliction of emotional distress
    3. libel
    4. slander
    5. negligence
  9. Once served with a lawsuit, the defendant would have ____ days to file an answer before a default judgment would be entered against the defendant.
    1. 15
    2. 30
    3. 45
    4. 60
  10. The defendant’s attorney wants to learn more about an incident that has happened on hotel property and has requested that all witnesses appear to have their oral testimony recorded for use in the trial phase. This oral testimony would take place in the form of _____.
    1. interrogatories
    2. depositions
    3. requests for admissions
    4. subpoenas
  11. A “negligent” person is one who has not used reasonable care in a situation.

True
False

  1. Compensatory damages are awarded to punish the offender in an attempt to deter similar behavior in the future.

True
False

  1. Treating an injured guest with sensitivity and concern can reduce the likelihood of a lawsuit.

True
False

  1. If it appears that your employees are at fault at the time of a workplace incident, it is best to let any injured parties know immediately.

True
False

  1. It is better to go to court than to attempt alternative dispute resolution when dealing with an incident.

True
False

  1. Hoteliers are responsible and liable for all accidents that happen on their property, whether foreseeable or not.

True
False

  1. A demand letter is official notification that lets the plaintiff know the date they are due to appear in court.

True
False

  1. Gross negligence may occur if a restaurant manager is reckless or willful in using even the slightest amount of reasonable care when dealing with patrons.

True
False

  1. When a U.S. citizen travels overseas and is injured due to negligence while staying at a U.S. based hotel, a lawsuit will more likely commence in the U.S. rather than abroad.

True
False

  1. When a patron slips and hurts him or herself in your restaurant, the first step you should take in responding to this accident is to call your insurance company to put them on notice of a possible claim so you don’t waive your insurance coverage for the claim.

True
False

Chapter 10: YOUR RESPONSIBILITIES AS A HOSPITALITY OPERATOR TO GUESTS

  1. Which of the following statements about Title II of the Civil Rights Act of 1964 is accurate?
    1. Title II prohibits denying admission of patrons to a public facility on the basis of gender.
    2. Under Title II, one cannot deny admission based on the age of the guest.
    3. Title II allows for denial of admission into public places of accommodation based on sexual orientation.
    4. It is a violation of Title II to deny any person admission to a public facility based on race, color, religion or national origin.
  2. Which of the following falls under one of the four priorities recommended for the ADA Title III compliance:
    1. Accessible approach and entrance
    2. Access to the kitchen
    3. Ability to sit at your own table
    4. Availability of valet service
  3. Which of the following will not be considered a covered establishment under the ADA Title III?
    1. Establishments serving food or beverages
    2. Places of recreation
    3. Places of public accommodation
    4. A private residence
  4. An invitee is an individual who is on a property at the _______ consent of the owner.
    1. expressed
    2. implied
    3. A or B
    4. A and B
  5. A hotel may refuse to admit or serve a guest in all the following events, except _____.
    1. the person cannot pay for the services.
    2. the person wants to bring in a deadly weapon.
    3. the person is a threat to employees or other guests.
    4. the person wants to bring into the hotel a service or guide animal.
  6. The law that protects people from liability in the event they take non-negligent action to save someone’s life, in a life threatening situation is called ____.
    1. Forgiveness Act
    2. Good Samaritan Laws
    3. Helpful Bystander Laws
    4. Alternative dispute resolution laws
  7. Hospitality room service attendants and managers should be trained to recognize and be observant as to guests who have checked in to the hotel by themselves, and order an expensive room service dinner and likewise an expensive bottle of wine or alcohol. This is known in the industry as ____.
    1. Dine and dash
    2. The Last Supper
    3. Trespasser Awareness
    4. None of the above is appropriate.
  8. Hoteliers may prohibit guests from checking into hotel with all of the following, except _____.
    1. weapons
    2. pets
    3. communicable diseases
    4. service animals
  9. Why is immediate removal of a bed bug infestation critical?
    1. Bed bugs reproduce and the infestation can spread quickly, resulting in costly removal.
    2. It isn’t critical as bed bug bites are not a common occurrence in a hotel.
    3. The bed bug infestation can create and spread undesirable diseases among all your guests.
    4. You can never control the bed bug infestation as guests carry them in daily with their luggage.
  10. Other than extended stay-type lodging properties and absent a formal agreement describing the legal relationship between the guest and the hotel, why should a hotel manager be concerned about a guest who stays for an extended period of time as a hotel guest?
    1. The hotel cannot change the room rate during the stay.
    2. The guest may be deemed a tenant invoking a landlord/tenant relationship.
    3. The hotel may have a difficult time collecting payment.
    4. The guest might enter unauthorized areas of the hotel and distract employees.
  11. The Federal Trade Commission works on behalf of consumers to limit deceptive business practices and fraud related to cybersecurity.

True
False

  1. The AED device can be utilized by trained, non-medical, personnel in order to increase the survival rate from a cardiac episode.

True
False

  1. A hotel has a legal responsibility to protect guests and invitees from all acts of third parties.

True
False

  1. The law allows a hotel manager to remove guests and their belongings whenever the guests unlawfully possess a hotel room.

True
False

  1. Hospitality managers are required to safeguard all guest financial information.

True
False

  1. Police officers are usually reluctant to enforce a hotel's claim for payment from a guest.

True
False

  1. It is legal to deny service of alcohol to an apparently intoxicated person, even if he or she is a guest in your establishment.

True
False

  1. An eviction can only be carried out if the guest is on property at the time.

True
False

  1. Bed bug infestations only occur in low-budget hotel facilities.

True
False

20. A TDD is a telecommunication device for deaf people.

True
False

Chapter 11: YOUR RESPONSIBILITIES FOR GUESTS’ PROPERTY

  1. Which of the following is a true statement?
    1. As a hospitality operator, you have a responsibility to take reasonable steps to safeguard the personal property that guests bring with them onto your premises.
    2. As a hospitality operator, it is not your responsibility to take reasonable steps to safeguard the personal property that guests bring with them onto your premises.
    3. As a hospitality operator, your guests are not expected to take reasonable steps to safeguard their personal property, they bring with them onto your premises.
    4. As a hospitality operator, you do not need to take any steps to safeguard the personal property that guests bring with them onto your premises.
  2. If the rightful owner does not return in a reasonable amount of time, ownership of the property transfers to:
    1. The property finder
    2. The business where the property was found
    3. The police
    4. The ownership of the property does not transfer.
  3. When items of value are found, the first goal should be to?
    1. Assess the value of the item
    2. Call the police
    3. Liquidate the property for the company's profit
    4. Return the property to its rightful owner
  4. An innkeeper will likely be liable for damage to, or loss of, a guest's property unless the damage was caused by:
    1. Acts of God such as flood or hurricane
    2. Civil unrest
    3. The negligence of the guest
    4. All of the above.
  5. Which of the following scenarios would not be considered a posting of a conspicuous notice of the limitation of liability statute in a hotel guest room?
    1. A copy of the statute is placed in the guest room closet.
    2. A copy of the statute is in the nightstand drawer.
    3. A copy of the statute is located on the television screen.
    4. All of the above apply.
  6. Which of the following are true statements concerning a patron who places his umbrella in an umbrella stand upon entering a restaurant.
    1. He can create a scene and insist that the restaurant owner reimburse him for the cost of the umbrella if it is stolen.
    2. He will have no recourse against the restaurant operator because a bailment situation has not been created.
    3. He should have taken precautions to safeguard his own personal property while in the restaurant.
    4. He will be deemed to have abandoned the umbrella if he doesn’t take it with him upon exiting the restaurant.
    5. All of the above statements are true.
  7. Personal property of a guest that has been put aside on purpose but then has been forgotten by the rightful owner is known as _____.
    1. Lost property
    2. Abandoned property
    3. Mislaid property
    4. Intentional property
  8. A person or entity who gives property to another in a bailment arrangement is known as a ______.
    1. Bailor
    2. Bailee
    3. a trusting soul
    4. bailment donor
  9. Best practices suggest that unclaimed personal property found by a hotel employee
    1. be given to the employee who found the property if the owner doesn’t claim it within 60-days
    2. should be sold and a party thrown for all employees
    3. should be kept in the hotel safe for 5 years
    4. must be given by the hotel operator to the hotel owner or lender for safe keeping.
  10. Valet car parking at a restaurant would be a good example of a ____.
    1. bailment for the benefit of both parties.
    2. bailment for the sole benefit of the bailor.
    3. bailment for the sole benefit of the bailee.
    4. None of the above are appropriate.
  11. In order to limit liability for a guest’s possessions, the hotel should provide a safe where guests can keep their valuables during their stay.

True
False

  1. In every state, an innkeeper is required to accept for safe keeping an unlimited amount of personal property from the guest.

True
False

  1. Under a bailment arrangement, the innkeeper is not responsible for the condition of returned items being the same as when they were left; for example, coat checks, valet parking.

True
False

  1. An innkeeper’s lien is a concept that helps protect innkeepers from nonpaying guests.

True
False

  1. The three classifications of property where the ownership is in doubt are mislaid property, lost property and abandoned property.

True
False

  1. A restaurant is ordinarily responsible for both the items and their unseen contents once a bailment has been established.

True
False

  1. Restaurants are not generally covered under the state laws that limit the liability of innkeepers, which can increase their risk.

True
False

  1. All three of the following are a type of bailment: bailments for the benefit of the bailor, bailments for the benefit of the bailee, and bailments for the benefit of both parties.

True
False

  1. The term infra hospitium is a Greek word meaning “in the hospital”.

True
False

  1. In most states, if a hotelier is negligent, the limitation of liability established by statute will not be available to the hotelier.

True
False

 

Chapter 12: YOUR RESPONSIBILITIES WHEN SERVING FOOD AND BEVERAGES

  1. Common areas of operation that are regulated by individual state Alcohol Beverage Commissions (ABC) are:
    1. Permitted hours of sale
    2. Approved changes for expansion or equipment purchases
    3. Maintaining records
    4. All of the above.
  2. Dram shop is described as:
    1. A name given to a variety of state laws establishing a liquor licensee’s third party liability
    2. The name of the area within the hotel/restaurant where alcohol can be served legally
    3. The name of the court house that rules on issues regarding the sale or consumption of alcohol
    4. A lawsuit that may arise as the result of negligence in serving alcohol to guests in your home
  3. "Truth in Menu" can be summed up by ensuring that:
    1. The server must be able to memorize the menu
    2. The menu for franchises of the same company must be identical
    3. The menu items must accurately reflect the price that is charged and the food that is served
    4. None of the above.
  4. The UCC stands for:
    1. Uniform Commercial Code
    2. Unilateral Commercial Code
    3. Uniform Customer Code
    4. Unilateral Customer Code
  5. The best thing to sober up an intoxicated person is:
    1. Time
    2. Coffee
    3. Shower
    4. Food
  6. A product that is flavored or seasoned in a particular manner, without any significance to religious concerns is known as ____.
    1. Kosher
    2. Kosher-style
    3. Kosher blend
    4. Non-Kosher
  7. The enforcement of truth-in-menu regulations is done by the ______.
    1. Federal government
    2. State and local public health departments
    3. Each company’s compliance team
    4. State attorney general’s office
  8. Alcohol is ____.
    1. A depressant
    2. A stimulant
    3. A narcotic
    4. None of the above.
  9. The United States has a _______ system for the distribution and sale of alcohol beverage products.
    1. Two-tiered (manufacturer to retailer)
    2. Three-tiered (manufacturer to distributor to retailer)
    3. UCC (manufacturer to distributor)
    4. Direct sale from manufacturer to retailer
    5. None of the above
  10. Many states prohibit all of the following except ____.
    1. Distribution of free alcohol
    2. Unlimited alcoholic beverages
    3. Giving alcoholic beverages as prizes
    4. None of the above
  11. Under the premise of "reasonable expectation" it would be reasonable to assume that a fish bone could be found in chicken soup.

True
False

  1. Restaurants will be held responsible for the illnesses suffered by their guests if those illnesses are the direct result of consuming unwholesome food.

True
False

  1. Chipped plates and glasses, or poorly washed utensils can present as much of a legal risk as serving spoiled food.

True
False

  1. It is legal and ethical to use the name/origin of a product, such as "Washington" apples, if your apples are very similar to those that are actually from Washington.

True
False

  1. A 5-ounce glass of table wine is safer and more moderate than one-and-a-half ounces of alcohol in a mixed drink, and less care is needed when serving it.

True
False

  1. Because a "social host" at a private party is not selling alcohol, but rather serving it gratuitously, he or she need not be concerned about the legal implications of serving a minor.

True
False

  1. Restaurants should strive to accommodate guests who ask that dishes be prepared without a specific ingredient to which they are allergic and to closely supervise the preparation of that dish.

True
False

  1. An alcohol license, once granted, becomes a right and cannot be taken away except in the event the proprietor sells the business.

True
False

  1. Bars and lounges who sell alcohol to minors using a fake ID will always be held liable even if the patron uses a false ID.

True
False

  1. The United States and most foreign countries have a three-tier system for the distribution and sale of alcohol beverage products.

True
False

Chapter 13: LEGAL RESPONSIBILITIES IN TRAVEL AND TOURISM

  1. Which one of following actions could be a sign of a tour operator enforcing an adhesion contract:
    1. Excessive cancellation fees
    2. Unreadable fine print
    3. Broad liability disclaimers
    4. All of the above.
  2. Which of the following statements is incorrect?
    1. A class action lawsuit is the case when the same incident affects an individual in the same manner more than once.
    2. A class action lawsuit is the case when a different incident affects many individuals in the same place.
    3. A class action lawsuit is the case when a similar incident affects many individuals in different places.
    4. A class action lawsuit is the case when a similar incidents affects many individuals in the same manner in the same place.
  3. Which one of the following is true about corporate business travel abroad?
    1. Domestic companies cannot predict volatile situations when employees are travelling internationally and therefore do not have any legal responsibility to protect their employees while traveling abroad.
    2. Employees carry the burden of learning cultural matters to keep themselves safe.
    3. Businesses have an obligation to exercise reasonable care to keep employees travelling abroad safe and secure.
    4. Companies do not need to carefully vet travel vendors.
    5. None of the above are true.
  4. Which one of the following is not false about tariffs?
    1. A tariff is the agreement between the airline and the passenger.
    2. A tariff is the agreement between the airline and the travel agent.
    3. Tariffs include an explanation of key terms identified on the ticket from any location where tickets are sold.
    4. Tariffs must be available for inspection upon request at each airport and city ticket offices.
  5. To enforce the terms of its tariff, an airline must:
    1. Mail a free copy of the full text of its tariff to the passenger upon request
    2. Ensure that the passengers can receive an explanation of key terms identified on the ticket from any location where the carrier’s tickets are sold, including travel agencies
    3. Make available for inspection the full text of its contract (tariff) at each of its own airport and city ticket offices
    4. All of the above
  6. Which of the following statements is incorrect?
    1. Tour operators act as the principal in the provision of travel services while travel agents act just as agents.
    2. Tour operators can be held responsible for the failure to deliver services while travel agents are not.
    3. The main source of income for travel agents and tour operators comes from the commission earned from the sale of a package.
    4. Travel agents can act both as an agent and a principal.
  7. “Travel law” is complicated for a variety of reasons, one of them being:
    1. Establishing jurisdiction
    2. Ease of access
    3. Controllable forces
    4. Reservations
  8. A one-sided agreement that appears to be more one-sided in favor of the stronger party and often not enforceable by the courts is called a ______.
    1. Arbitrary contract
    2. Ancillary contract
    3. Adhesion contract
    4. unenforceable contract
  9. The two main types of timesharing plans are:
    1. deeded and undeeded
    2. bi-weekly and monthly
    3. annually and bi-annually
    4. lease and purchase
  10. Health care tourism or medical tourism offers three main categories of medical treatments. Which of the following is not one of the categories?
    1. alternative therapies
    2. palliative care
    3. health screenings
    4. cosmetic surgeries
  11. “International Travel Law” is defined as: the ordinances, rules, treaties, and agreements used to regulate the international travel industry.

True
False

  1. When one business is dependent upon the performance of another business, liability for poor performance becomes easier and clearer to determine.

True
False

  1. A travel agent charging a client a fee for booking a hotel or airline reservation, is a clear example of fiduciary responsibility of the travel agent to that client.

True
False

  1. Common carriers’ use of reasonable care to protect their passengers can be compared to that degree of care used by innkeepers to protect their guests.

True
False

  1. An accurate definition for jurisdiction is the authority given by law or treaty to a court to try cases and make decisions on legal matters within a particular time frame and a particular geographic area.

True
False

  1. The Warsaw Convention is an agreement that sets limits on the liability of airlines.

True
False

  1. Maritime law is also known as the law of admiralty.

True
False

  1. For domestic travel, federal law requires any limit on an airline’s total baggage liability to be at least $1,000 per family

True
False

  1. A nondisturbance clause in a contract is critical for buyers of timeshare properties because it ensures the quiet atmosphere desired by the occupants during their stay.

True
False

  1. OTA segment of the hospitality industry primarily deals with business travel.

True
False

Chapter 14: SAFETY AND SECURITY ISSUES

  1. Which of the following is NOT a part of crisis management?
    1. Educating your employees how to act if a crisis happens
    2. Dealing with the media when a crisis happens
    3. Discussing with your guests how the last crisis happened at the property
    4. Recognizing the good job your employees did during the crisis
  2. What is the first priority to protect during an emergency at the property?
    1. People
    2. Power lines
    3. Property
    4. Crucial records of the business
  3. Which of the following will impair the safety and the security of the hotel?
    1. Giving duplicate keys to the registered guest
    2. Allowing both the executive housekeeper and assistant executive housekeeper to have the master key for all the guest rooms
    3. Printing a welcome sign with the hotel’s name on every key
    4. Writing down the room number for guests on a key card holder when they check in
  4. Which of the following employees should make up the "Safety Committee"?
    1. The Line staff, as they have the most experience doing the job
    2. The managers, as they have the most ability to deal with crises
    3. The Executive Committee, to ensure that discretion is used in a crisis situation and to prevent the media and other staff from learning of situations as they arise
    4. A mixture of employees at all levels, to make the committee more effective throughout the hotel
  5. The most common crimes against hospitality businesses are
    1. Consumer theft of services, which involves a guest who leaves without paying the bill
    2. Fraudulent payment of a bill, for example, where a stolen credit card is presented for payment
    3. Internal theft of assets, committed by your own staff
    4. A, B and C are the three most common activities
  6. Which of the following is an advantage of pre-planning?
    1. Reduced employer effectiveness
    2. Reduced insurance rates
    3. Reduced employee turnover
    4. Improved facilitating ratios
  7. One of the most commonly reported venues for sex trafficking is ____.
    1. hotels and motels
    2. airports
    3. malls
    4. retail stores
  8. When dealing with the media about a crisis at your hotel property, you should do all of the following except ____.
    1. Show concern for the safety of your guests and employees.
    2. Immediately update your website.
    3. Let the media know if the incident occurred in the front or back of the house.
    4. Speak clearly and professionally.
  9. To reduce employee theft in your restaurant, you should consider all of the following except ____.
    1. Do not allow “off-the-clock” employees to linger around the restaurant after their shift.
    2. Create an antitheft environment
    3. Screen potential employee candidates as to whether they have ever been accused of stealing
    4. Implement effective inventory controls.
  10. After a crisis, employers need to recognize and respond to employees who_____
    1. suffer from PTSD
    2. quit their jobs
    3. have large hospital bills
    4. restaurant property damage
  11. As long as a crisis management plan is thorough, it need not be committed to writing.

True
False

  1. It is a good idea to practice the procedures identified in a crisis management plan with the employees who may be affected.

True
False

  1. The main role of a security guard is to intervene when suspicious actions occur, even if doing so may not be safe.

True
False

  1. Simple monitoring of activities can sometimes be the best response to a potential threat.

True
False

  1. A well-qualified team of security guards should support but not substitute for a safety and security program.

True
False

  1. A “Safety Program” consists of procedures and activities designed to insure the physical protection and good health of guests and employees.

True
False

  1. Mexican law does not recognize a cause of action for negligent infliction of emotional distress.

True
False

  1. One of the significant elements of a hotel security program is dealing with local authorities.

True
False

  1. The chip and pin/signature process is becoming the standard authorization process in the U.S.

True
False

  1. There is little risk associated with issuing cash in exchange for a credit card charge.

True
False

Chapter 15: MANAGING INSURANCE

  1. Purchasing insurance should involve
    1. Determining what types of insurance you need
    2. Determining the ideal monetary amount of coverage
    3. Selecting a specific insurance company
    4. A, B and C
    5. A and C
    6. A and B
  2. Workers' Compensation:
    1. Provides injury-related insurance to those workers who were hurt while on the job
    2. Provides insurance to workers who have been laid off due to cutbacks
    3. Provides insurance to workers who have been terminated for an offense
    4. None of the above.
  3. An "umbrella" as it relates to insurance:
    1. Is the maximum amount that can be paid for all claims during a policy period
    2. Is insurance coverage purchased to supplement primary coverage
    3. Is the maximum amount that will be paid in the event of a single claim
    4. Is the amount of insurance provided by a traditional insurance policy
  4. Which of the following is one of the three primary categories of insurance policy types?
    1. Life insurance
    2. Health insurance
    3. Property-casualty insurance
    4. Rental insurance
  5. International insurance claims are generally less than U.S. claims due to:
    1. no punitive damages
    2. fewer claims
    3. international countries are less litigious
    4. All of the above
    5. None of the above
  6. Cyber risk insurance is also known as ____.
    1. Business interruption coverage
    2. Cyber insurance coverage
    3. Data Breach coverage
    4. Enterprise Risk coverage
  7. Data breach insurance coverage will sometimes be included in a business’ ______.
    1. errors and omissions insurance
    2. workers compensation
    3. general liability coverage
    4. restoration protection coverage
  8. To assume agreed-upon maximum levels of liability in the event of a loss or damage is known as _____.
    1. underwriting
    2. annuity protection
    3. AA ratings
    4. Face sheet protection.
  9. EPLI insurance provides coverage for all of the following types of claims except _____.
    1. Sexual harassment by a manager
    2. Discrimination by a supervisor
    3. Wrongful termination of a key employee
    4. Property damage caused by fire
    5. Retaliation by the housekeeping department
  10. The Affordable Care and Patient Protection Act is also known as ____.
    1. America’s Health Care Act
    2. Obamacare
    3. COBRA
    4. Single Payer Health Care Act
  11. Insurance, or, protection from risk, makes good financial sense but is never required by law.

True
False

  1. A "premium" is the amount paid for insurance coverage‒whether one lump sum or over time.

True
False

  1. Financial protection, which comes from property-liability insurance, is also known as indemnification.

True
False

  1. If an insurance company is not financially sound, then your property is not necessarily covered, even if there is a written contract between the insurer and the insured.

True
False

  1. Liability insurance ordinarily provides coverage when a guest slips and falls.

True
False

  1. Earthquakes and floods are examples of "Acts of God."

True
False

  1. Dram shop insurance provides coverage relating to the sale or consumption of beverages containing alcohol.

True
False

  1. An accountant is a mathematician or statistician who computes insurance risks and establishes premium rates.

True
False

  1. Once a hospitality company complies with the Payment Card Industry Data Security Standard, they are protected from liability due to a breach of their data system.

True
False

  1. Cyber extortion coverage may be purchased as part of the cyber insurance policy.

True
False

Document Information

Document Type:
DOCX
Chapter Number:
All in one
Created Date:
Aug 21, 2025
Chapter Name:
Hospitality Law 5th Edition Test Bank with Answer Key
Author:
Stephen C. Barth

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Hospitality Law 5th Edition Test Bank with Answer Key

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