HMGT 4244 - HOSPITALITY LAW EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
The UCC stands for - Answers Uniform Commercial Code
The UCC is the acronym for the laws regulating purchase and sale agreements for land, which gives
protections only to buyers. - Answers False
A valid contract needs consideration flowing to both parties. - Answers True
According to the law, franchisors must provide potential investors with a basic disclosure document
and are required to guarantee a profit to the franchisee in the third year of the franchise operation. -
Answers False
In a lawsuit, the person or entity against which litigation is initiated is known as the _____________. -
Answers Defendant
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
Exculpatory seek to put blame on the hospitality operator in certain situations. - Answers False
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
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
The Uniform Commercial Code requires you to... - Answers Fulfill any promises made in a purchasing
or sales contract
"Consideration" in the hospitality industry is often? - Answers All of the above
Which of the following is not an advantae when purchasing a franchise? - Answers Sensitivity to
menu items for local clientele
A hospitality manager may be resonible for which type of legal agreement? - Answers All of the
above.
A contract has to be in writing to be enforceable by the courts. - Answers False
Exculpatory clases: - Answers May be void and unenforceable in some states
A management Agreement is the legal agreeement that defines the responsibilities of a business
owner and the management company chosen to operate the owners business. - Answers True
"Capacity to contract means...... - Answers The individuals creating a contract must meet minimum
age, mental, and physical requirements in order to make the contract legal.
Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make
the contract valid. - Answers True
Franchisors are not required to disclose the restrictions on what te franchisee may sell in the
franchise business and how it may be sold. - Answers False
Which government agency regulates unfair or deceptive trade practices in the offering of franchises? -
Answers Federal Trade Commision
A hotel can insulate itself from liability by hiring outside contractors and service providers. - Answers
False
Gross negligence may occur if a restaurant manager is reckless or willful in using even the slightest
amount of reasonable care when dealing with patrons. - Answers False
If a guest were to slip and fall in a puddle where there was not a wet-floor sign, or other reasonable
indication of danger, then the hotel has likely committed: - Answers A tort
When a U.S citizen travels oversease and is injured due to negligence while staying at a U.S based
hotel, a lawsuit will more likely commence in the U.S rather than abroad. - Answers True
A "tort" is: - Answers A civil wrong committed against an individual or entity.
Treating an injured guest with sensitivity and concern can reduce the likelihood of a lawsuit. -
Answers True
The best example of "strict liability" in a restaurant would be? - Answers The sale of defecive food or
beverages.
Which of the following elements must be present for a guest to bring an action against a hotel based
in tort? - Answers All of the above
Which of the following statements regarding a hotel's guty to protect its guests in true? - Answers
Hotels must exercise reasonable care to prevent injury to a guest.
The UCC stands for - Answers Uniform Commercial Code
The UCC is the acronym for the laws regulating purchase and sale agreements for land, which gives
protections only to buyers. - Answers False
A valid contract needs consideration flowing to both parties. - Answers True
According to the law, franchisors must provide potential investors with a basic disclosure document
and are required to guarantee a profit to the franchisee in the third year of the franchise operation. -
Answers False
In a lawsuit, the person or entity against which litigation is initiated is known as the _____________. -
Answers Defendant
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
Exculpatory seek to put blame on the hospitality operator in certain situations. - Answers False
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
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
The Uniform Commercial Code requires you to... - Answers Fulfill any promises made in a purchasing
or sales contract
"Consideration" in the hospitality industry is often? - Answers All of the above
Which of the following is not an advantae when purchasing a franchise? - Answers Sensitivity to
menu items for local clientele
A hospitality manager may be resonible for which type of legal agreement? - Answers All of the
above.
A contract has to be in writing to be enforceable by the courts. - Answers False
Exculpatory clases: - Answers May be void and unenforceable in some states
A management Agreement is the legal agreeement that defines the responsibilities of a business
owner and the management company chosen to operate the owners business. - Answers True
"Capacity to contract means...... - Answers The individuals creating a contract must meet minimum
age, mental, and physical requirements in order to make the contract legal.
Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make
the contract valid. - Answers True
Franchisors are not required to disclose the restrictions on what te franchisee may sell in the
franchise business and how it may be sold. - Answers False
Which government agency regulates unfair or deceptive trade practices in the offering of franchises? -
Answers Federal Trade Commision
A hotel can insulate itself from liability by hiring outside contractors and service providers. - Answers
False
Gross negligence may occur if a restaurant manager is reckless or willful in using even the slightest
amount of reasonable care when dealing with patrons. - Answers False
If a guest were to slip and fall in a puddle where there was not a wet-floor sign, or other reasonable
indication of danger, then the hotel has likely committed: - Answers A tort
When a U.S citizen travels oversease and is injured due to negligence while staying at a U.S based
hotel, a lawsuit will more likely commence in the U.S rather than abroad. - Answers True
A "tort" is: - Answers A civil wrong committed against an individual or entity.
Treating an injured guest with sensitivity and concern can reduce the likelihood of a lawsuit. -
Answers True
The best example of "strict liability" in a restaurant would be? - Answers The sale of defecive food or
beverages.
Which of the following elements must be present for a guest to bring an action against a hotel based
in tort? - Answers All of the above
Which of the following statements regarding a hotel's guty to protect its guests in true? - Answers
Hotels must exercise reasonable care to prevent injury to a guest.
