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Shannon Mitch Santos

on 8 October 2014

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Transcript of Copy of HOSPITALITY LAW

Use in common law
Common law holds innkeepers liable for any loss of guest property when the guest in on the premises of a place of business; in practice, such liability is often overlooked provided that the business owner meets certain conditions (such as having a guest sign a waiver of liability). In most countries, for liability waivers to be enforceable, notification of the waiver must be posted in an accessible, visible location (usually at the front desk or in a common area of the business), and must be printed in clearly legible text.
Sources of Law
 Constitutional law - The Philippine Constitution
 Delegated powers—expressly allocated to the federal government in the Constitution
 Interstate commerce—business affecting more than one state
 Legislative process—method by which Congress adopts laws
 Administrative or executive orders, regulations and rulings
 Law promulgated by legislators and generally agreed to by the executive (president, governor, or mayor)
 Statute—law adopted by federal or state legislature
 Ordinance—law adopted by local legislature

Historical Background Philippine legal history may be categorized according to the various periods in the political history of the country: the pre-Spanish period (pre 1521); the Spanish regime (1521-1898); the Philippine Republic of 1898; the American regime (1898-1935); the Commonwealth era (1935-1946); the Japanese occupation (1941-1944); the Period of the Republic (1946-1972); the Martial Law Period (1972-1986); and the continuation of the Republic.
Legal System in the Philippines
The Philippine legal system is aptly described as a blend of customary usage, and Roman (civil law) and Anglo-American (common law) systems. The civil law operates in areas such as family relations, property, succession, contract and criminal law while statutes and principles of common law origin are evident in such areas as constitutional law, procedure, corporation law, negotiable instruments, taxation, insurance, labour relations, banking and currency. In some Southern parts of the islands, Islamic law is observed. This particular legal system is the result of the immigration of Muslim Malays in the fourteenth century and the subsequent colonization of the islands by Spain and the United States.

Hospitality law is a legal and social practice related to the treatment of a person's guests or those who patronize a place of business. Related to the concept of legal liability, hospitality laws are intended to protect both hosts and guests against injury, whether accidental or intentional.
Duty to Guests
Hotels and other business operators are expected to "act prudently and use reasonable care"[1] to ensure that their premises are (reasonably) free of risk. While not specifically requiring that a business owner ensure his guests are safe, most jurisdictions interpret 'prudent and reasonable' to include foreseeable dangers, such as tripping hazards or unsecured shelving.
In most cases, unless directly disclaimed (for example, with some insurance waivers), hospitality law does not protect a business owner against charges of negligence

 Common law
 Consists of legal rules that evolved from decisions of judges and from custom and practice
 Gradually modified as habits were modified, as new inventions created new wants and conveniences, and as new methods of doing business developed
 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
 To some extent statutes and common law are intertwined
 Sometimes statutes are adopted to modify common law

Hospitality laws relate to food service, travel, and lodging industries. It governs the various nuances of the hotel, restaurant, bar, spa, country club, meeting, and convention industries, among others. Much like entertainment law, homeowners association law, and other specialty fields, hospitality law is much more a description of the types of clients who seek out the attorneys who focus their practices in these areas rather than an actual set of laws. Hospitality law commonly encompasses a wide array of laws including contracts, anti-trust, torts, real estate, and many others.
A process can be implemented that will help reduce employee errors and
omissions and, therefore, litigation and liability. The process is called STEM, for
select, teach, educate, and manage.
1. Select: Managers can begin reducing litigation by selecting the right
employee for the right job. Managers cannot hire “ just anyone ” at the last
minute. Employees must be selected based on specific job qualifications,
written job specifications, and information derived from a thorough investigation
of the candidate for the position, whether the employee to be hired
is a busperson, waitperson, hostess, door supervisor, or line supervisor.
2. Teach: Managers must develop proper training methods for employees,
including feedback devices such as competency testing, to ensure that the
training is effective.
3. Educate: Managers must continuously educate themselves so that they
know which topics and procedures must be passed on to employees
through effective teaching methods.
4. Manage: Effective managers know that if you consistently do things the
right way, the chances for mistakes — and, therefore, for litigation — will
diminish. Management has been defined as consisting of four functions:
planning, organizing, controlling, and motivating. While all four have legal
implications, the STEM process focuses almost exclusively on the motivating
function. A manager who creates a supportive work environment will gain
the trust and respect of employees, who will then be motivated to do their
best work, and thus avoid making errors that could result in litigation.
 Ask job-related and legally acceptable questions.
 Review the application form for obvious problems.
 Note any large gaps in employment, or frequent job changes.
 Contact the applicant immediately to answer questions.
 Ask the applicant to sign an authorization and release form for checking references.
 Don’t just hire anyone, be selective.
 negligent hiring

Checking the Applicant’s Records
 Interview the applicant’s former manager by phone to:
 Check the facts on the application form.
 Probe for information.
 Ask about how the applicant interacted with other employees.
 Ask if the employee left on good terms and is eligible for rehire at that company.
 Check the applicant’s educational record, credit rating, and criminal convictions.

Testing Applicants
 Hiring Tests
 Must be legal and valid.
 Must comply with Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990.
 Must not be biased against anyone because of race, color, religion, age, sex, national origin, or disabilities.(exception: bona-fide occupation qualification).

Train and Educate

 These two aspects are interrelated.
 Train your employees the right way to perform the task(s) the first time. It is easier to train than to retrain.
 Ensure that the trainer is properly trained himself/herself.
 Remember, it is the evidentiary trail that wins lawsuits, not who is right or wrong.
 Educate yourself about new trends, technological innovations, laws, and rules and regulations which impact your industry

The Training Trail
 What was taught?
 Who was taught?
 How was the training conducted?
 When was the training provided?
 How did you determine its effectiveness?
 The evidentiary trail.

Positive Management and Employee Loyalty
 How to become a positive manager and build employee loyalty.
 raise employee morale and self-esteem
 reduce turnover
 enhance service
 enhance customer satisfaction
 reduce litigation
 enhance the bottom line

Proper Management and Motivation
 As a manager - Lead by example!
 Today’s culturally diverse workforce will require diverse motivating techniques.
 People are motivated by different things.
 Find out what it is that motivates your employees.
 Involve employees in the process.
 Ask your employees how you are doing as a manager.

A fellow supervisor and friend confides in you that that he has been arrested a second time in two years for driving under the influence of alcohol. His current case has not yet gone to trial. This supervisor is responsible for the late-night closing of the restaurant in which you both work. You know bars in your city close at 2:00 A.M., the same time the restaurant closes

1. Should you discuss this situation with the restaurant's General Manager?
2. Which aspect of STEM is relevant here?

Assume that you are the Food and Beverage Director of a large hotel. You are planning for your New Year’s Eve gala, and require a large amount of wine and champagne. You conduct a competitive bidding process with the purveyors in your area, and, based upon quality and price, you place a very large order (in excess of $20,000) with a single purveyor.
One week later, you receive a case of very expensive champagne, delivered to your home with a nice note from the purveyor’s representative stating how much they appreciated the order and that they are really looking forward to doing business with you in the years ahead. What do you do with the champagne?

Ethical Analysis
Your first thought may be the most obvious one; that is, you drink it. But hopefully, you will first ask yourself the seven questions of the ethical decision-making process.

Ethical Decision-Making Process
1. Is it legal?
2. Does it hurt anyone?
3. Is it fair?
4. Am I being honest?
5. Would I care if it happened to me?
6. Would I publicize my action?
7. What if everyone did it?

1. Give a hospitality example of the importance that “selection” makes in the STEM process.
2. Give a hospitality example of the importance of “teaching” in the STEM process.
3. Give a hospitality example of the importance of “education” in the STEM process.
4. Give a hospitality example of the importance that “managing” makes in the STEM process.

Government Agencies that Impact the Hospitality Industry
 Federal Regulatory and Administrative Agencies
 State Regulatory and Administrative Agencies
 Local Regulatory and Administrative Agencies
 Regulatory Interaction and Oversight Impacting Travel and Tourism
 Managing Conflicting Regulations
 Responding to an Inquiry
 Monitoring Regulatory Change

I. Federal Regulatory and Administrative Agencies
1. Bureau of Internal Revenue
2. Occupational Safety and Health Administration (OSHA),
3. Environmental Protection Agency (EPA)
4. Food and Drug Administration (FDA)
5. Equal Employment Opportunity Commission (EEOC)
6. Bureau of Alcohol, Tobacco, and Firearms (ATF)
7. Department of Labor (DOL)
Wage and Hours
Pensions and Welfare Benefits
Plant Closings and Layoffs
Employee Polygraph Protection Act
Family and Medical Leave Act
8. Department of Justice (DOJ)

II. State Regulatory and Administrative Agencies
1. Employment Security Agency
2. Alcohol Beverage Commission (ABC)
3. Treasury Department/Controller
4. Attorney General
5. Public Health Department
6. Department of Transportation

III. Local Regulatory and Administrative Agencies
Health and Sanitation
Building and Zoning
Courts and Garnishment
Historical Preservation
Fire Department
Law Enforcement
Tax Assessor/Collector

IV. Regulatory Interaction and Oversight Impacting Travel and Tourism
V. Government Agencies regulating the travel industry:
a. Department of Trade & Industry (DTI)
b. Centers for Disease Control (CDC)
c. Department of the Interior & Local Government (DILG)
d. Department of Homeland Security (DHS)
e. Treasury Department
f. Department of Transportation (DOT)
g. Department of Tourism (DOT)
f. Department of Environmental and Natural Resources (DENR)

Definition of Law
It is the science of moral laws founded on the rational nature of man that governs his free activity for the realization of the individual and social ends of life under an aspect of mutual conditional dependence
Kinds of Law
As to purpose:
Substantive Law
- create, defines amd regulates rights, or which regulates th rights and duties of which give rise to the course of action
Adjective Law
- provides the method of aiding and protecting certain rights
As to Scope:
General or Public Law
- applies to all the people of the state or to all particular class of persons with qual force and obligations.
Special or Private Law
- relates to particular persons or things of a class. Example:
Civil Law - mass of percepts that determines and regulates those relations of assistance, authority and obedience existing among members of a family and those which exist among members of society for the protection of private interests
Criminal Law - dealing with crimes and punishment
International Law - body of rules or principles of action governing the relations between states

Political Law - a law regulating the relations sustained by the inhabitants of a territory to the sovereign
Maritime Law - law dealing with commerce by sea, involving regulations of ships and harbors and the status of seamen
Mercantile Law - law of special transactions derived from the law of merchant which includes commercial paper, insurance other types of agencies
A body of rules and or principles of action which deals with the regulation, authority, relations and obedience among members of a society involved in tourist travel and accommodation. It includes persons traveling from place to place for pleasure and business establishments or persons engaged in the occupation of providing services to the tourists
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