Hotel, Restaurant, and Travel Law A Preventative Approach

Hotel, Restaurant, and Travel Law:
A Preventive Approach,
Seventh Edition
Chapter 1
Introduction to Contemporary Hospitality
Review : Answer the definition
 Liaison
 communication or cooperation that
facilitates a close working relationship
between people or organizations:
 a person who acts as a link to assist
communication or cooperation between
groups of people
 外國在台非營利組織或無營運收入之分支機構、
辦事處或聯絡處的辦公費用, 包括派駐人員薪資
Review : Answer the definition
 Unlimited Company(無限公司)
 which term denotes a company organized by
two or more shareholders who bear
unlimited joint and several liabilities for
discharge of the obligations of the company.
 Limited Company(有限公司)
 which term denotes a company organized by
one or more shareholders, with each
shareholder being liable for the company in
an amount limited to the amount
contributed by him.
Review : Answer the definition
 Unlimited company with limited
liability shareholders(兩合公司)
 which term denotes a company organized by
one or more shareholders of unlimited
liability and one or more shareholders of
limited liability; among them the
shareholder(s) with unlimited liability shall
bear unlimited joint liability for the
obligations of the company, while each of
the shareholders with limited liability shall
be held liable for the obligations of the
company only in respect of the amount of
capital contributed by him.
Review : Answer the definition
 Company Limited by shares(股份有限公司)
 which term denotes a company organized by
two or more or one government or corporate
shareholder, with the total capital of the
company being divided into shares and each
shareholder being liable for the company in
an amount equal to the total value of shares
subscribed by him.
The name of a company shall indicate the
class to which it belongs.
Review : Answer the definition
 Civil Air Transport Enterprise
 means an undertaking directly
engaging in the transportation
by aircraft of passengers, cargo
and mail for compensation or
Key Terms
 Chapter 1 P.13
Compensatory damages
Punitive damages
Case decision
Stare decisis
Theft of services (from New York)
Principles of Hospitality Law
 Restaurants
 Bars
 Hotels, inns, B & B’s, motels
 Travel agents
 Airlines
Principles of Hospitality Law (continued)
 Casinos
 Amusement parks
 Theaters
 Night clubs
 Sports facilities
Sources of Law
 Constitutional law
 Delegated powers—expressly allocated
to the federal government in the
 Interstate commerce—business affecting
more than one state
 Legislative process—method by which
Congress adopts laws
 Check co name setup
 Apply forms submitted to “Competent
 Corporate charter(公司章程)
 Business areas(營業項目)
 Preopening office(開立籌備處帳戶,大章)
 Reserved capital (公司準備金)
 Certificate of profit seeking enterprise(公
Why do we need to understand?
 Your right and obligation to check the
information of a co when you want to
work and dedicate in this co.
 Do companies follow the rule to run
the business?
 What kind of company do you like to
dedicate to?
Different co advantages—copy
Sole propriety
Co unlimited
Co limited
Sources of Law
 Statutory law
 Law promulgated by legislators and
generally agreed to by the executive
(president, governor, or mayor)
 Statute—law adopted by federal or state
 Ordinance—law adopted by local
Sources of Law
 Common law
 Consists of legal rules that evolved from
decisions of judges and from custom and
 Gradually modified as habits were
modified, as new inventions created new
wants and conveniences, and as new
methods of doing business developed
Sources of Law
 Precedents
 Case decision —interpretation of the law applied
by a judge to a set of facts in a given case
 Precedent —case decision becomes precedent
 Stare decisis—process of following earlier cases
gives some uniformity to the law
Sources of Law
 To some extent statutes and common
law are intertwined
 Ex: Civil law and business law in Taiwan
 Sometimes statutes are adopted to
modify common law
Categories of Law
Public law公法
Private law私法
Constitution law, administrative law,
International law, criminal law
Company Act
Civil law,
business law
Instruments Act
Maritime Act
adjective law
Insurance Act
Civil procedure act, criminal
procedure code, administrative
procedure act
*Securities and
Exchange Law
Administrative Law
 Refers to laws that define powers,
limitations, and procedures of
administrative agencies
 Administrative agency—governmental
subdivision charged with administering
legislation that applies to a particular industry
 Laws adopted by administrative agencies are
called regulations
Administrative Law
 Food and Drug Administration—oversees
food and pharmaceutical industries
 Federal Communications Commission—
oversees the communications/broadcasting
 Consumer Product Safety Commission—
polices the safety of consumer products
Role of the Judge
 Makes the law in cases where no
precedent or statute exists
 Interprets the law in cases where a
statute applies
 Appellate judges—also review
decisions of other judges
Judges roles
Supreme court
highest level
3-9 judges
Appellant Court
second level
3-9 judges
Trial Court
1 judge
<What TV shows>
Civil and Criminal Law
 Civil law—wrong done to an individual
 Criminal law—wrong considered to be
inflicted on society
Civil and Criminal Law
 Objectives
 Civil lawsuit—compensation for an injury
 Criminal lawsuit—punishment of the
Civil and Criminal Law
 Civil lawsuit
 Person who commences the lawsuit is the
injured person
 Criminal lawsuit
 Person who undertakes the lawsuit is
society-at-large, usually referred to as
“The State of …” or “The People of the
State of …” or “The Commonwealth of …”
Examples of Civil Law
 Contract
 An agreement between two or more
parties that is enforceable in court
Examples of Civil Law
 Torts
 Negligence—breach of a legal duty to act
 Trademark infringement—use of another
company’s business name or logo without
 Fraud—intentionally untruthful statement made
to induce reliance by another person
Some questions
Remedies in Civil Cases
 Remedy sought by the injured party
in a civil case is damages (money)
 Compensatory damages—money given
to compensate for injuries
 Includes out-of-pocket expenses
 Medical bills
 Lost wages
 Pain and suffering
 Physical distress or mental anguish
 Loss of enjoyment of life
Remedies in Civil Cases
 Punitive damages
 Money in excess of compensatory damages
 Punish or make an example of the defendant
 Awarded only in cases where defendant’s
wrongful acts are aggravated by violence,
malice, fraud, or a similar egregious wrong
Examples of Crimes
 Theft of services—using services (e.g., hotel room)
without paying and with intent to avoid
 Assault—intentionally putting someone in
fear of harmful physical contact
 Battery—causing harmful physical contact
to a person
Penalties and Remedies
in Criminal Cases
 Community service
 Fines
 Probation—criminal offenders remain out of
jail, supervised by probation officer
 Death in some states
How to Read a Case
 Judges’ written decisions are called
 Books in which cases are published
are called case books
How to Read a Case
Important: How do you write a case in law?
 Identify four elements as you read the case P.12
 The facts—circumstances that gave rise to the lawsuit
 The issue—legal question that the parties want
 The judge’s decision—judge’s response to the issue
 The reasoning supporting the decision—basis and
rationale for the decision
Case Example 1-1 P.12
Review Quesitons P.14
Discussion Questions P.14
 2.
 4.
Application Questions P.15
Assignment—find the solution
 Law issue 1
 Law issue 2

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