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Hospitality Law Final
Auburn Universty-Kim-Spring 2012
70
Law
Undergraduate 1
05/02/2012

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Term
Plaintiff
Definition
The person or entity that initiates litigation against another. Sometimes also referred to as the claimant, petitioner, or applicant.
Term
Defendant
Definition
The person or entity against which litigation is initiated. Sometimes referred to as the respondent.
Term
Enforceable Contract
Definition
A contract recognized as valid by the courts and subject to the court’s ability to compel compliance with its terms
Term
Offer
Definition
A proposal to perform an act or to pay an amount that, if accepted, constitutes a legally valid contract
Term
Acceptance
Definition
Unconditional agreement to the precise terms and conditions of an offer
Term
Consideration
Definition
The payment exchanged for the promise(s) contained in a contract
Term
Express Contract
Definition
A contract in which the components of the agreement are explicitly stated, either orally or written.
Term
Uniform Commercial Code (UCC)
Definition
A model statute covering things such as the sale of goods, credit, and bank transactions. All states have adopted the UCC, with the exception of Louisiana.
Term
Caveat Emptor
Definition
A Latin phrase meaning “let the buyer beware.” The phrase implies that the burden of determining the relative quality and price of a product falls to the buyer, not the seller
Term
Breach of Contract
Definition
Failure to keep the promises or agreements of a contract
Term
Damages
Definition
Losses or costs incurred due to another’s wrongful act.
Term
Arbitration
Definition
A process in which an agreed-upon, independent, neutral third party (the arbitrator), renders a final and binding resolution to a dispute. The decision of the arbitrator is known as the “award.”
Term
Mediation
Definition
A process in which an appointed, neutral third party (the mediator), assists those involved in a dispute with resolving their own differences. The result of mediation, when successful, is known as the “settlement.”
Term
Statute of Limitations
Definition
Various laws that set maximum time periods in which lawsuits must be initiated. If the suit is not initiated (or filed) before the expiration of the maximum period allowed, then the law prohibits the use of the courts for recovery.
Term
Confirmed Reservation
Definition
A contract to provide a reservation in which the provider guarantees the guest’s reservation will be honored until a mutually agreeable time. A confirmed reservation may be either guaranteed or nonguaranteed.
Term
Nonguaranteed Reservation
Definition
A contract to provide a confirmed reservation where no prepayment or authorization is required.
Term
Guaranteed Reservation
Definition
A contract to provide a confirmed reservation in which the provider guarantees the guest’s reservation will be honored regardless of time of arrival, but the guest will be charged if he or she no-shows the reservation. Prepayment or payment authorization is required.
Term
Operating agreement
Definition
a contract that details the areas of responsibilities of the owner of a business and the entity selected by the owner to operate the business. Also referred to as a “management contract”
Term
Meeting Planners
Definition
A group of professionals that plan and organize meetings and events for their employers and clients
Term
Clause (contract)
Definition
a distinct contract provision or stipulation
Term
Essential clauses for providing products and services to guests
Definition
Length of time the contract price terms exist.
Identification of who is authorized to modify the contract.
Deposit and cancellation policies.
Allowable attrition.
Indemnification for damages.
Payment terms.
Performance standards related to quantity.
Term
Attrition –
Definition
Reduction in the number of projected participants or attendees.
Term
Essential clauses for purchasing products and services to guests
Definition
Payment terms.
Delivery or start date.
Completion date.
Performance standards.
Licenses and permits.
Indemnification.
Nonperformance clauses.
Dispute resolution terms.
Term
Indemnification
Definition
To make one whole; to reimburse for a loss already incurred.
Term
Exculpatory Clause or Contract
Definition
A contract (or clause in a contract) that releases one of the parties from liability for their wrongdoings.
Term
Disclosure
Definition
To reveal fully and honestly.
Term
Franchise Agreement
Definition
A special hospitality contract that details the responsibilities of both parties (franchisor and franchisee) involved in the operation of a franchise.
Term
Right of First Refusal
Definition
A clause in a contractual agreement between two parties in a business relationship in which one party, upon termination of the business relationship, can exercise the right to buy the interest of the other party before those rights can be offered for sale to another.
Term
Management agreement
Definition
the legal agreement that defines the responsibilities of a business owner and the management company chosen to operate the owner’s business. Also known as a “management contract.”
Term
Kickback
Definition
a secret rebate of part of a purchase price, given by the seller, to the buyer, in exchange for the buyer’s influence in the purchasing decision.
Term
Conference services contract
Definition
An agreement that details the space, products, and services to be provided to a group before, during and after its meeting.
Term
Master bill
Definition
A single folio (bill) established for a group that includes specifically agreed-upon group charges. Sometimes called a “master folio,” “group folio,” or “group bill.”
Term
Cut-off date
Definition
The date on which any rooms contracted, and thus held for sale, but not yet picked up (reserved) by the group are returned to the hotel’s general rooms inventory.
Term
Merchantable
Definition
Suitable for buying and selling.
Term
Food-borne Illness
Definition
Sickness or harm caused by the consumption of unsafe foods or beverages.
Term
Truth in menu
Definition
The collective name given to various laws and regulations that have been implemented to ensure accuracy in the wording of menus.
Term
Depressant
Definition
A substance that lowers the rate of vital body activities.
Term
Blood Alcohol Concentration (BAC)
Definition
A measurement, expressed in a percentage, of the concentration level of alcohol in the bloodstream. (Also known as blood alcohol content or blood alcohol level, or BAL.)
Term
Intoxication
Definition
A condition in which an individual’s BAL reaches legally established levels. These levels are not uniform across the United States. An intoxicated person may not sell or purchase alcohol, nor operate a motor vehicle.
Term
Liquor License
Definition
A permit issued by a state that allows for the sale and/or service of alcoholic beverages. The entity holding the license is known as the licensee.
Term
Liquor Licensee
Definition
An entity which has been issued a liquor license by the proper state authority.
Term
Third Party Liability
Definition
A legal concept that holds the second party (seller) in an alcohol transaction liable for the acts of the first party (consumer), as well as for any harm suffered by a third party as a result of the first party’s actions
Term
Social Host
Definition
A nonlicensed provider of alcohol, typically in a party or similar gathering.
Term
Dram Shop
Definition
A name given to a variety of state laws establishing a liquor licensee’s third-party liability.
Term
Travel Law
Definition
The laws regulating business and individual behavior in the travel industry.
Term
International Travel Law
Definition
The ordinances, rules, treaties, and agreements used to regulate the international travel industry.
Term
Jurisdiction
Definition
The authority given by law or treaty to a court to try cases and make decisions about legal matters within a particular geographic area and/or over certain types of cases.
Term
Fiduciary
Definition
A relationship based on trust and the responsibility to act in the best interest of another when performing tasks.
Term
Class Action Lawsuit
Definition
A lawsuit filed by one or more people on behalf of themselves and a larger group of people who were similarly affected by an event.
Term
Tour Operator
Definition
A company whose primary activity is the planning, packaging, and marketing of travel services, including transportation, meals, accommodations, and activities.
Term
Adhesion contract
Definition
A contract whose terms were not truly negotiated or bargained and, as a result, may be so one-sided in favor of the stronger party that the contract is often deemed unenforceable by the courts.
Term
Common Carrier
Definition
A company or individual that is in the regular business of transporting people and/or freight for a fee. Examples include airlines, cruise lines, trains and buses.
Term
Warsaw Convention
Definition
Short for the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw on October 12, 1929, this agreement set limits on the liabilities of airlines that follow established guidelines for the safe operation of international airline flights.
Term
Tariff
Definition
The agreement between an airline and its passengers. When purchasing a ticket, the passenger agrees to the terms of the tariff.
Term
Signatory
Definition
An entity that signs and agrees to abide by the terms of a document.
Term
Maritime Law
Definition
Also called “admiralty law” or “the law of admiralty”, the laws, regulations, international agreements, and treaties that govern activities in navigable waters.
Term
Time-share
Definition
A form of shared property ownership in which a buyer acquires the right to occupy a piece of real estate, such as a condominium in a resort area, for a specific period of time each year
Term
Amusement Park
Definition
An entertainment facility featuring rides, games, food, and sometimes shows. Theme parks are ________ in which the rides, attractions, shows, and buildings revolve around a central theme or group of themes. Examples include the Disney and Universal Studies owned ______.
Term
Nondisturbance clause
Definition
A clause in a contract that stipulates that leases or other ownership investments in the property will be allowed to continue uninterrupted in the event of a default or insolvency by the landlord/seller.
Term
Global Distribution System (GDS)
Definition
An interconnected computer system that connects travel professionals worldwide to those companies selling travel services.
Term
Forum (venue) selection clause
Definition
A statement in a contract identifying the agreed-on tribunal for resolving legal disputes related to the contract’s terms
Term
Safety Program
Definition
Those procedures and activities designed to insure the physical protection and good health of guests and employees.
Term
Security Program
Definition
Those procedures and activities designed to protect the property or assets of guests, employees, and the business.
Term
Crisis
Definition
An occurrence that holds the potential to jeopardize the health of individuals and or the business.
Term
Interdiction Programs
Definition
An arrangement whereby citizens contact police to report suspected criminal activity before a crime is committed.
Term
Bond-(ing)
Definition
An insurance agreement in which the insurer guarantees payment to an employer in the event of financial loss caused by the actions of a specific employee.
Term
Emergency Plan
Definition
A procedure or series of procedures implemented in response to a crisis.
Term
Post-Traumatic Stress Disorder
Definition
A severe reaction to an event that threatened an individual’s physical or emotional health.
Term
Press Release
Definition
An official statement, from an individual or organization, that is distributed to the media and other parties judged to be interested in the information it contains
Term
Off The Record
Definition
An oral agreement between a reporter and an interviewee wherein the reporter promises not to quote the interviewee’s comments for publication.
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