Hospitality Law and Ethics Flashcards

What is the legal concept of 'duty of care' in the hospitality industry?

Answer: The legal obligation hotels have to take reasonable steps to prevent foreseeable harm to guests

Duty of care is a foundational legal principle requiring hotels to take reasonable precautions to protect guests from foreseeable harm. This includes maintaining safe premises, securing adequate lighting, providing working smoke detectors, training staff on safety procedures, and warning guests of known hazards.

What is the 'innkeeper's lien' right in hospitality law?

Answer: A hotel's legal right to hold a guest's property as security for unpaid bills

The innkeeper's lien is a traditional common law (and now statutory) right allowing hotels to retain a guest's property — luggage, personal effects — as security against an unpaid bill. The hotel may hold the property until the debt is settled and, in some jurisdictions, may eventually sell it.

What does 'vicarious liability' mean for hotel employers?

Answer: A hotel's legal responsibility for wrongful acts committed by its employees in the course of their employment

Vicarious liability (respondeat superior) makes employers legally responsible for the wrongful acts of their employees when those acts are committed within the scope of employment. Hotels can be held liable if an employee injures a guest through negligence, assault, or other wrongful conduct while performing their job.

What is the 'dram shop liability' law and how does it affect hotels?

Answer: Laws holding establishments that serve alcohol liable for harm caused by intoxicated guests

Dram shop laws (in effect in most US states) hold alcohol vendors — including hotel bars and restaurants — civilly liable if they serve alcohol to a visibly intoxicated person or a minor who subsequently causes injury or death to a third party. This creates significant liability exposure for hospitality businesses.

What is the significance of 'PCI DSS compliance' for hotels?

Answer: A security standard protecting cardholder data in hotel payment processing systems

PCI DSS (Payment Card Industry Data Security Standard) is a mandatory security framework for any organization that processes, stores, or transmits credit card data. Hotels must comply to protect guest cardholder data, prevent breaches, and maintain their ability to accept credit card payments.

What is the 'right of refusal' in hotel operations law?

Answer: A hotel's legal ability to deny accommodation, subject to anti-discrimination laws

Hotels generally have the right to refuse accommodation to prospective guests, but this right is limited by federal and state anti-discrimination laws (Civil Rights Act, ADA, state statutes) that prohibit refusal based on race, color, religion, sex, national origin, disability, or other protected characteristics.