HMGT 4244 FINAL QUESTIONS WITH VERIFIED
ANSWERS
A valid contract needs consideration flowing to both parties. - Answers - true
A hospitality manager may be responsible for which type of legal agreement(s)? -
Answers - all of the above: Franchise Agreements
Supply Agreements
Employment Agreements
Management Agreements
A contract has to be in writing to be enforceable by the courts. - Answers - false
The UCC is the acronym for the law regulating purchasing agreements, which gives
protection to buyers, sellers and financial lenders when goods are purchased under
contract. - Answers - true
Indemnification means to make one whole; to reimburse for a loss already incurred. -
Answers - true
The best way for a hotelier to indicate acceptance of an offer is? - Answers - agree to
the offer in writing
Which of the following represents a fee that is ordinarily paid by the franchisee to the
franchisor? - Answers - all of the above: Earnings percentage (royalty fee)
Franchise application fee
Advertising participation (marketing fee)
Which of the following is not an advantage when purchasing a franchise? - Answers -
Sensitivity to menu items for local clientele
A well drafted conference service contract will contain a provision for cancellation by the
group. If a group decreases the number of contracted attendees, this is known as _____
and a provision should also be stated in the conference service contract. - Answers -
attrition
It is the responsibility of the courts to decide the relative fairness of consideration. -
Answers - false
The UCC stands for: - Answers - Uniform Commercial Code
In all cases, it is unlawful to breach a contract. - Answers - false
, Which of the following is a major element of management agreements? - Answers - all
of the above: The control, if any, that the owner has in the selection or removal of the
business's management personnel.
Insurace requirements of the management company (who must carry the insurance and
how much)
Incentives fees earned or penalties assessed related to operating performance
All contracts, whether verbal or written, must be for legal purpose and in order to be
enforceable, must consist of an offer, acceptance, and consideration. - Answers - true
In the lodging industry, payment can be made if the hotel agrees to directly bill the
company or group for all the charges. - Answers - true
Exculpatory clauses seek to put blame on the hospitality operator in certain situations. -
Answers - false
A well-developed group lodging contact will include detailed language about a variety of
items including how room rates will be calculated if the contract is signed prior to the
establishment of the group's final room rates. - Answers - true
In a lawsuit, the person or entity that initiates litigation against another is known as the
_____. - Answers - plaintiff
The Uniform Commercial Code requires you to? - Answers - Fulfill any promises made
in a purchasing or sales contract
Franchisors are not required to disclose the restrictions on what the franchisee may sell
in the franchise business and how it may be sold. - Answers - false
Which of the following would not ordinarily be classified as a "Bona Fide Occupational
Qualification?" - Answers - gender
Companies have the right to establish rules and policies for their workplace, so long as
those rules do not violate the law. - Answers - true
All states have child labor laws. - Answers - true
Which of the following statements is untrue? - Answers - An employee who quits his or
her job for a non-work related reason is eligible for unemployment benefits.
When a complaint is lodged, or when inappropriate activity is brought to the attention of
management, the manager should wait to see if the charge is proven, and only then
take action to investigate the charge. - Answers - false
Discrimination against marital status by an employer is a federally protected right under
Title VII of the Civil Rights Act of 1964, as amended. - Answers - false
ANSWERS
A valid contract needs consideration flowing to both parties. - Answers - true
A hospitality manager may be responsible for which type of legal agreement(s)? -
Answers - all of the above: Franchise Agreements
Supply Agreements
Employment Agreements
Management Agreements
A contract has to be in writing to be enforceable by the courts. - Answers - false
The UCC is the acronym for the law regulating purchasing agreements, which gives
protection to buyers, sellers and financial lenders when goods are purchased under
contract. - Answers - true
Indemnification means to make one whole; to reimburse for a loss already incurred. -
Answers - true
The best way for a hotelier to indicate acceptance of an offer is? - Answers - agree to
the offer in writing
Which of the following represents a fee that is ordinarily paid by the franchisee to the
franchisor? - Answers - all of the above: Earnings percentage (royalty fee)
Franchise application fee
Advertising participation (marketing fee)
Which of the following is not an advantage when purchasing a franchise? - Answers -
Sensitivity to menu items for local clientele
A well drafted conference service contract will contain a provision for cancellation by the
group. If a group decreases the number of contracted attendees, this is known as _____
and a provision should also be stated in the conference service contract. - Answers -
attrition
It is the responsibility of the courts to decide the relative fairness of consideration. -
Answers - false
The UCC stands for: - Answers - Uniform Commercial Code
In all cases, it is unlawful to breach a contract. - Answers - false
, Which of the following is a major element of management agreements? - Answers - all
of the above: The control, if any, that the owner has in the selection or removal of the
business's management personnel.
Insurace requirements of the management company (who must carry the insurance and
how much)
Incentives fees earned or penalties assessed related to operating performance
All contracts, whether verbal or written, must be for legal purpose and in order to be
enforceable, must consist of an offer, acceptance, and consideration. - Answers - true
In the lodging industry, payment can be made if the hotel agrees to directly bill the
company or group for all the charges. - Answers - true
Exculpatory clauses seek to put blame on the hospitality operator in certain situations. -
Answers - false
A well-developed group lodging contact will include detailed language about a variety of
items including how room rates will be calculated if the contract is signed prior to the
establishment of the group's final room rates. - Answers - true
In a lawsuit, the person or entity that initiates litigation against another is known as the
_____. - Answers - plaintiff
The Uniform Commercial Code requires you to? - Answers - Fulfill any promises made
in a purchasing or sales contract
Franchisors are not required to disclose the restrictions on what the franchisee may sell
in the franchise business and how it may be sold. - Answers - false
Which of the following would not ordinarily be classified as a "Bona Fide Occupational
Qualification?" - Answers - gender
Companies have the right to establish rules and policies for their workplace, so long as
those rules do not violate the law. - Answers - true
All states have child labor laws. - Answers - true
Which of the following statements is untrue? - Answers - An employee who quits his or
her job for a non-work related reason is eligible for unemployment benefits.
When a complaint is lodged, or when inappropriate activity is brought to the attention of
management, the manager should wait to see if the charge is proven, and only then
take action to investigate the charge. - Answers - false
Discrimination against marital status by an employer is a federally protected right under
Title VII of the Civil Rights Act of 1964, as amended. - Answers - false
