HFT 3806 FINAL QUESTIONS WITH VERIFIED
ANSWERS
The Makeup of the Travel Industry - Answers - 1. Suppliers of travel services, such as
hotels, resorts, airlines, and other transportation.
2. Travel wholesalers that combine the services offered by suppliers into "package
tours".
3. Travel agents who sell both package tours and services of individual supplier.
4. Travelers
Travel Agent Latter - Answers - An individual who advises travelers on most aspects of
taking trips.
Agency - Answers - A relationship in which one person acts or represents another
based on authority voluntarily given by the other person.
Two Parties Involved:
1. The principal (employer) is the person who authorizes someone else (an agent) to act
on his behalf.
2. The agent (employee) is the person so authorized, the one who represents or acts for
the principal consistent with the principal's direction.
True or False: When the agent acts on behalf of a principal and within the scope of the
authority given by the principal, the agent is liable for the agent's acts, the latter is not. -
Answers - False
-The latter is liable for the agent's acts, the agent is not.
True or False: Agency law requires that the agent disclose to the agent's client the
identity of the principal so that the client can investigate the reputation or credit of the
principal if the client is so inclined. - Answers - True
Independent Contractor - Answers - People who contract to do work for someone else,
but are engaged in an independent business for themselves.
-An agency relationship must be distinguished from that of an independent contractor.
Tariff - Answers - A rule or condition of air travel that binds the airline and passengers.
It covers items such as:
1. Airline's liability for damaged baggage.
2. Procedures for filing a claim.
3. Rules for reservations and check-in times.
4. Limits on the airline's liability for schedule changes and flight delays.
5. Personal injury liability limitations.
, True or False: Tariffs conclusively and exclusively govern the rights and liabilities
between airline and travelers. - Answers - True
Small Claim Courts - Answers - A forum that encourages people to act as their own
advocates without a lawyer.
-Many travel cases.
-The maximum amount of money a plaintiff can seek is $3,000-$5,000.
Class Action Suit - Answers - A legal device which many people who have suffered
losses from the same causes sue the defendant jointly.
-Popular for air travel/crashes/delays.
-It is a financially attractive option for plaintiffs because the cost of the lawsuit is spread
among many plaintiffs instead of just one.
True or Flase: If baggage were to be lost, passengers are not entitled to compensation
for only a portion of it, there would be compensation for emotional stress or for punitive
damages. - Answers - False
-Passengers are only entitled to compensation for a portion of it, there would be no
compensation for emotional stress or punitive damages.
Limits of liability for lost luggage on domestic flights are covered by tariffs, which are
developed by the airlines and approved by the __________ __ _____________. -
Answers - Department of Transportation
Before 2003, international flights were governed by the _________ __________, an
international treaty that set limits of liability for lost, stolen, damaged, or misplaced
baggage. - Answers - Warsaw Convention
After 2003, the Montreal Convention took place of the Warsaw Convention, regarding
international flights, creating what changes? - Answers - 1. Maximum recovery for
damage of property is set at $1,400.
2. Calculation of the amount of damages awarded for property loss based on law of the
state or country where the action is commenced.
3. Relaxation of the requirement that an airline issue a baggage check with prescribed
contents.
4. Elimination of the loss of limited liability if the airline fails to comply with the
documentation requirements.
5. Introduction of a requirement for airlines to maintain insurance to cover their potential
liability.
6. Allowance for plaintiff to bring a lawsuit at the place of his residence.
With two exceptions, only ticketed passengers are allowed beyond x-ray security check
points. The two exceptions are: - Answers - 1. Parents with children who will be
travelling alone.
2. Attendants of disabled person.
ANSWERS
The Makeup of the Travel Industry - Answers - 1. Suppliers of travel services, such as
hotels, resorts, airlines, and other transportation.
2. Travel wholesalers that combine the services offered by suppliers into "package
tours".
3. Travel agents who sell both package tours and services of individual supplier.
4. Travelers
Travel Agent Latter - Answers - An individual who advises travelers on most aspects of
taking trips.
Agency - Answers - A relationship in which one person acts or represents another
based on authority voluntarily given by the other person.
Two Parties Involved:
1. The principal (employer) is the person who authorizes someone else (an agent) to act
on his behalf.
2. The agent (employee) is the person so authorized, the one who represents or acts for
the principal consistent with the principal's direction.
True or False: When the agent acts on behalf of a principal and within the scope of the
authority given by the principal, the agent is liable for the agent's acts, the latter is not. -
Answers - False
-The latter is liable for the agent's acts, the agent is not.
True or False: Agency law requires that the agent disclose to the agent's client the
identity of the principal so that the client can investigate the reputation or credit of the
principal if the client is so inclined. - Answers - True
Independent Contractor - Answers - People who contract to do work for someone else,
but are engaged in an independent business for themselves.
-An agency relationship must be distinguished from that of an independent contractor.
Tariff - Answers - A rule or condition of air travel that binds the airline and passengers.
It covers items such as:
1. Airline's liability for damaged baggage.
2. Procedures for filing a claim.
3. Rules for reservations and check-in times.
4. Limits on the airline's liability for schedule changes and flight delays.
5. Personal injury liability limitations.
, True or False: Tariffs conclusively and exclusively govern the rights and liabilities
between airline and travelers. - Answers - True
Small Claim Courts - Answers - A forum that encourages people to act as their own
advocates without a lawyer.
-Many travel cases.
-The maximum amount of money a plaintiff can seek is $3,000-$5,000.
Class Action Suit - Answers - A legal device which many people who have suffered
losses from the same causes sue the defendant jointly.
-Popular for air travel/crashes/delays.
-It is a financially attractive option for plaintiffs because the cost of the lawsuit is spread
among many plaintiffs instead of just one.
True or Flase: If baggage were to be lost, passengers are not entitled to compensation
for only a portion of it, there would be compensation for emotional stress or for punitive
damages. - Answers - False
-Passengers are only entitled to compensation for a portion of it, there would be no
compensation for emotional stress or punitive damages.
Limits of liability for lost luggage on domestic flights are covered by tariffs, which are
developed by the airlines and approved by the __________ __ _____________. -
Answers - Department of Transportation
Before 2003, international flights were governed by the _________ __________, an
international treaty that set limits of liability for lost, stolen, damaged, or misplaced
baggage. - Answers - Warsaw Convention
After 2003, the Montreal Convention took place of the Warsaw Convention, regarding
international flights, creating what changes? - Answers - 1. Maximum recovery for
damage of property is set at $1,400.
2. Calculation of the amount of damages awarded for property loss based on law of the
state or country where the action is commenced.
3. Relaxation of the requirement that an airline issue a baggage check with prescribed
contents.
4. Elimination of the loss of limited liability if the airline fails to comply with the
documentation requirements.
5. Introduction of a requirement for airlines to maintain insurance to cover their potential
liability.
6. Allowance for plaintiff to bring a lawsuit at the place of his residence.
With two exceptions, only ticketed passengers are allowed beyond x-ray security check
points. The two exceptions are: - Answers - 1. Parents with children who will be
travelling alone.
2. Attendants of disabled person.
