HFT 3806 Final Exam Questions with Correct Answers Latest Update 2025/2026
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
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
