1 Chapter 3 Hospitality Past, Present, & Future Hospitality Services By Johnny Sue Reynolds 1.
HOSPITALITY LAW 1
Transcript of HOSPITALITY LAW 1
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HOSPITALITY LAW
The Legal System
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Why study law? Most of what we do in life is regulated by the
law.
The hospitality industry is a service industry soyou are in constant touch with the general
public.
You will also have legal relationships with
suppliers, employees, travel agents etc.
Therefore it is essential to know the laws.
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Example
The owner of the Sea View Hotel
overbooks the rooms in the expectation
that some guests may cancel. He alsoadvertises that a kids club is available.
The Smith family book a sea view room.
On arrival they are told the room they have
reserved is double booked. They are
given a ground floor room overlooking the
car park. Also due to staff shortages
there is no kids club.
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Example
1. Is the hotel owner criminally liable for
overbooking the hotel?
2. Is the owner criminally liable for the
representations which he made in the
brochure?
3. Which form or forms of civil action mightthe Smith family bring against the hotel?
4. Can the Smith family recover damages
for their disappointment?
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What is Law? A set of rules to govern the conduct of
people in a civilised society. Without
laws a civilised society would degenerate
into disorder.
Laws are for the protection of society
as a whole.
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Criminal LawAntisocial behaviour regarded as an
offence against society as a whole.
Enforced by police or other enforcement
agencies.
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Penalties imposed for criminal
offences
Fines
Community Service
Probation
Suspended Sentence
Imprisonment
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Civil Law Governs relationships between individual
members of society.
Does not involve the police or other
enforcement agencies. The individuals
involved must sort out their differences.
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Penalties imposed in a civil court
If a person loses a case in a civil court
they may have to pay compensation to
the injured party plus theirlegal costs.
They normally have to return the parties to
the position they were in before they
suffered loss.
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Crimes v Civil wrongs Crimes are punished, Civil wrongs are
remedied.
Civil wrongs can be insured against,
Crimes cannot.
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How Laws are Made The common law made by judicial
decisions.
Legislation Made by or under the
authority of Parliament.
European Law resulting from
membership of the European Union.
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Common Law First developed after the Norman
Conquests.
The common law was the body of lawdeveloped over many years fromjudicial decisions, and was commonthroughout the country. A decision in acase sets a precedent which is followed insubsequent cases.
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Legislation Legislation is a written set of rules
decided on by a law-making body which
lays down rules to govern a range ofsituations.
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EC Law
Treaty of Rome (1957)
Most law affecting businesses which is of
European origin arises from the Treaty of Romeand such law is referred to as EC Law.
The scope and aim of the Treaty was amendedin 1986 by the Single European Act and in
1993 by the Maastricht Treaty. The Treaty of Rome became known as the EC
Treaty
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Treaties Treaties are international agreements
between countries but they are not law. The
agreement reached in a treaty needs to bemade law.
EC Laws have supremacy over UK Laws and
as a consequence, the UK and all member
states of the EU have lost their sovereigntyin those areas covered by the EC Treaty.
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Defrenne V Sabena (1975)
Ms Defrenne was an air hostess employed by theBelgian Airline, Sabena.
Male air stewards employed by Sabena were paid morethan air hostesses despite their jobs being identical.
Ms Defrenne took court action against the airline basingher claim on Article 119 of the EC Treaty. The questionwhich had to be decided was whether the somewhatgeneral statement in Article 119, which appeared to be aduty directed to member states, gave any rights toemployees of private employers.
The European Court of Justice decided that Article 119had direct effect and, therefore, conferred rights
enforceable by Ms Defrenne.
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Supremacy ofEC Laws Factortame Ltd v Secretary of State for Transport (1991)
The Merchant Shipping Actbn1988, a UK Act of Parliament,imposed conditions which had to be met if a fishing vessel wasto be registered as British. The conditions included one that ithad to be British owned. The applicant company was owned
and controlled by Spanish nationals. The company owned andoperated fishing vessels which, prior to the 1988 Act, wereBritish registered and so could fish against the British FishingQuota. The company could not meet the new conditions in the1988 Act.
The company alleged that the 1988 Act was contrary to EC lawand that question was referred to the European Court of justicefor a decision.
The European Court of Justice decided that the UKs 1988 Actwas in breach of Article 52 of the EC treaty and was, therefore
ineffective.
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Secondary Legislation EC Treaty Article 189
In order to carry out their task, the
Council and Commission shall, inaccordance with the provisions of thistreaty, make regulations, issuedirectives, take decisions, makerecommendations or deliver opinions.
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Three Principle
Institutions of the EUThe Commission
The Council
The European Parliament
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Making EC Secondary Legislation
There are three different procedures by
which EC secondary legislation is made.
The consultation procedure, co-operation
procedure and the co-decision procedure.
The final stage in all procedures is the
adoption of the legislation by the Council.
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EC Secondary Legislation EC secondary legislation consists of regulations,
directives, decisions, recommendations and opinions.
EC Treaty Article 189
.a Regulation shall have general application. It shall bebinding in its entirety and directly applicable in all memberstates.
A Directive shall be binding, as to the result to be achieved,upon each member state to which it is addressed but shall
leave the national authorities the choice of form andmethods.
A decision shall be binding in its entirety upon those towhom it is addressed.
Recommendations and opinions shall have no binding
force.
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Regulations Regulations are of general application
and binding in all member states.
Once made by the EU institutions, they
form part of the law of each member state
without the need for any further action.
They have immediate direct effect.
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Directives Directives are directions given to member
states to make national laws by a certain date
to achieve certain results.
Directives cannot have direct effect because
they do not become law in each state until the
national law is made.
However, when directives have passed their
implement by date, they can have a direct
effect between the state and an individual.
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Francovich v Italian
Republic(1992) Directive 80/987 The Italian government had failed to implement Directive
80/987 to set up a compensation scheme for employees whoseemployers become insolvent.
Mr Francovich was owed money by his insolvent employers.He sued the Italian government for the money due to him.
The European Court of Justice decided that if a directive givesrights to individuals and has not been implemented then anindividual who suffers loss as a direct result of the failure toimplement the directive can sue the government to recover thatloss.
Accordingly despite the fact that the compensation scheme hadnot been established Mr Francovich was able to getcompensation from his government because of their failure toset up that scheme.
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Recommendations Recommendations have no binding
effect, but can be taken into account when
the court comes to make some sense ofnational legislation passed to give effect to
the recommendation.
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Decisions Decisions are a means of introducing
policies or initiating actions.
A decision is binding upon those to whom
it is addressed.