Hospitality Law Final
Hospitality Law Final
Hospitality Law Final
What is Law?
Law can be defined in various ways but generally, it is the system of rules which a particular country or
community recognizes as regulating the actions of its members and which it may enforce by the
imposition of penalties. Some laws are universal while others are specific. There are laws that are
generally applied across board and as well there are industry specific laws. Some laws are common in
different countries (jurisdiction) while others are particular to individual countries.
Sources of Law
1. The government
2. Common law
1. The Executive:
In Kenya, the executive branch consists of the President, the Deputy President and the
Cabinet.
The President--
(a) is the Head of State and Government;
(b) exercises the executive authority of the Republic, with the assistance of the Deputy
President and Cabinet Secretaries;
(c) is the Commander-in-Chief of the Kenya Defence Forces;
(d) is the chairperson of the National Security Council; and
(e) is a symbol of national unity.
The president
- Makes executive orders
- Enforces law
2. Legislature
Kenya enacted a new Constitution in 2010 through which it established a system of
government akin to a federation, with legislative authority shared between the national
Parliament and county legislatures. At the national level, Kenya has a bicameral Parliament
consisting of the National Assembly and the Senate
The main function of the legislature is to make laws.
3. Judiciary
The Judiciary of Kenya is the system of courts that interprets and applies the law in Kenya.
The judiciary is headed by the chief justice.
The judiciary through courts and judges;
Common law
Common law (also known as judicial precedent or judge-made law, or case law) is the body of law
derived from judicial decisions of courts and similar tribunals. The defining characteristic of “common
law” is that it arises as precedent. In cases where the parties disagree on what the law is, a common
law court looks to past precedential decisions of relevant courts, and synthesizes the principles of
those past cases as applicable to the current facts. If a similar dispute has been resolved in the past,
the court is usually bound to follow the reasoning used in the prior decision (a principle known as stare
decisis).
Judge
Duties of judges are as follows;
i) To Interoperates laws
ii) To make laws through precedence
iii) Appellate judge: review the decisions of other judges
- Litigation: The act of initiating and carrying on a lawsuit. Its often, used to refer to the
lawsuit itself.
- Plaintiff: The party who initiates a lawsuit (also known as an action) before a court. By doing
so, the plaintiff seeks a legal remedy; if this search is successful, the court will issue
judgment in favor of the plaintiff and make the appropriate court order (e.g., an order for
damages).
- A defendant: A person accused of committing a crime in criminal prosecution or a person
against whom some type of civil relief is being sought in a civil case.
- Plaint : An official legal complaint against someone that is used in a court of law
- Force Majeure Clause: a clause that permits either party to not perform the contract if they
cannot do so because of reasons outside of their control (terrorist attack, hurricane, etc.)
- Search warrant:
A written order by a judge which permits a law enforcement officer to search a specific
place and identifies the person(s) or articles to be seized
- Summons:
Document ordering the defendant to appear and defend against the allegations (complaint)
Criminal cases involve an action that is considered to be harmful to society as a whole (hence, these
are considered offenses against the "state" or the jurisdiction of the prosecution
A civil case is a lawsuit that usually deals with contracts and/or torts. Torts, generally speaking, are
wrongful (negligent) acts that result in damage or injury
In general terms;
A criminal case happens when the government files a case in court to punish someone (the defendant)
for committing a crime.
A civil case happens when one person, business, or agency sues another one because of a
dispute between
them, usually involving money
Examples:
Case arising due to
- Theft of services
- Assault
Components of a case
a. Time requirements: Cases consume time, it’s therefore necessary to consider if going to court
is worth the time.
b. Cost factors; Cases cost the money. One need also consider, suppose they lose.
c. Reputation/publicity: Companies pay because they don’t want bad publicity.
A Contract is a legal agreement creating legally enforceable obligations between two or more parties
Contracts are not legally required to be in writing. Therefore a contract can be express or implied.
Elements of a contract
1. Offer
In a contract an offer is a proposal. That is an expression of the desire to enter into
a contract that is beneficial to both parties involved.
3. Consideration – This refers to something of value given to someone in return for goods,
services, or some other promise. Something bargained for and received by a promisor from a
promisee
.A valid contract must include consideration for every party involved. In simple terms,
consideration is the basic reason a party enters into a legal contract.
4. Legal capacity to contract – A person entering into a contract must have mentally capacity to
make logical agreement. I.e. not intoxicated, under the use of drugs and not a minor.
A minor is a person under the age of 18. Minors have no ability to make a binding contract.
5. The offeror
This is the individual making the offer to the other (also called proposer)
6. The offeree
This is the individual having the offer made to them (also called proposee)
Breach of Contract:
A failure, without legal justification, to perform any promise that forms the whole or part of a contract
Types of contracts
A tort is an act or omission, other than a breach of contract, which gives rise to injury or harm to
another, and amounts to a civil wrong for which courts impose liability. In other words, a wrong has
been committed and the remedy is money or other form of compensation of damages to the person
wronged.
NEGLIGENCE:
Negligence is the most common of tort cases.
Negligence – generally defined as the doing of that thing, which a reasonably prudent person would
not have done, or the failure to do that thing, which a reasonably prudent person would have done,
under like or similar facts and circumstances. At its core negligence occurs when a tortfeasor, the
person responsible for committing a wrong, is careless and therefore responsible for the harm this
carelessness caused to another.
Hospitality businesses owe a “duty of care” to guests.
There are four elements of a negligence case that must be proven for a lawsuit to be successful. All
four elements must exist and be proven by a plaintiff. The failure to prove any one of these four
elements makes a lawsuit in negligence deficient. The four elements are:
• Duty
• Breach
• Causation
• Harm
A basic negligence lawsuit would require a person owing a duty to another person, then breaching that
duty, with that breach being the cause of the harm to the other person.
DUTY:
The first element of negligence is duty, also referred to as duty of care. What is a duty? In its most
simplistic terms, it is an obligation to either do or not do something that will harm someone else. Think
of duty as an obligation. We all have a duty or an obligation to act reasonably or reasonably refrain
from certain actions, in such a way as to not cause injury or harm to another person. For example, as
drivers of automobiles on public roads, we all have a duty to follow the rules of the road. It is our
obligation as a licensed driver to do so. We understand that rules like speed limits are imposed to
protect others. A reasonable person understands that the failure to follow the rules of the road may
result in harm to another person.
BREACH:
Once a plaintiff has established and proven that a defendant owned a duty of care to the plaintiff, the
second element of negligence a plaintiff must prove is a breach of that duty of care. This is when a
person or company has a duty of care to another and fails to live up to that standard of care. A plaintiff
must prove that the defendant’s act or omission caused the plaintiff to be exposed to unreasonable
risk of injury and/or harm. In other words, the defendant failed to meet their obligation to the plaintiff
and therefore put the plaintiff in harm’s way.
CAUSATION:
The third element of negligence is causation. There are two types of negligent causation, actual cause
and proximate cause. Actual cause is sometimes referred to as cause in fact. It means that “but for”
the negligent act or omission of the defendant, the plaintiff would not have been harmed. This is
known as the “but for” test. For example, driver A is passing through an intersection with a green light.
Driver B runs the red light and strikes driver A’s vehicle and injures driver A. Clearly, “but for“ the
running of the red light by driver B, driver A’s vehicle would not have been struck by driver B, and drive
A would not have been harmed.
The second type of negligent causation is proximate cause. Proximate cause requires the natural,
direct, and uninterrupted consequence of a negligent act or omission to be the cause of a plaintiff’s
injury. Proximate cause also requires foreseeability. It must be foreseeable as to the result, and also as
to the plaintiff. If the result is too remote, too far removed, or too unusual from the defendant’s act or
omission so as to make them unforeseeable, then the defendant is not the proximate cause of the
plaintiff’s harm.
For example, driver A is speeding. A squirrel runs in front of driver A’s car so driver A swerves, and
because of the high rate of speed of which he is traveling, loses control of his vehicle and hits a
mailbox. The mailbox flies so violently up in the air from the impact that it hits an overhead powerline.
The force of the mailbox hitting the powerline forces the powerline to break off the utility pole onto
the sidewalk where it is still electrified. A pedestrian approaching the scene steps on the powerline
and is injured by the live powerline. A jury may find that driver A’s actions are not the proximate cause
of the pedestrian’s injuries, because the resulting harm is so remote and so unusual as to render them
unforeseeable.
HARM:
Harm can come in many forms. It can be economic, like medical costs and loss wages. It can be non-
economic, like pain and suffering or extreme emotional distress. It can be harm to a person’s body, to
a family member, or to property. However, if one is not harmed in some way, the fourth element of
negligence is not met and the lawsuit in negligence will not prevail.
Harm and causation in some ways are like the chicken and the egg. Which came first? Without harm
there is really no causation, just a duty and breach of that duty. However, without causation there is
no harm since again, we just have the duty and its breach. Just know this, if there is a duty and breach
of that duty, and a subsequent harm or injury, it must be caused by that breach of duty.
Theories of Liability
Proximate cause: the event or activity that directly contributes to or causes the injury or harm
Gross negligence: is negligence that is taken ‘that much’ further
We will focus on the laws that apply to hospitality and tourism whether general law or industry
specific.
Some of the duties owed to guests in rooms include but are not limited to;
a) Clean rooms
d) Electrical and Heating Hazards – Reasonable care must be taken to ensure that electrical and
heating appliances are well maintained and regularly checked to minimize possibility of risk to guests.
g) Hand bars and grips: must be properly installed, inspected regular and repaired/replaced as
required.
Some of the duties owed to guests in restaurants and dining rooms include but are not limited to;
a) Slippery floors
i) Appropriate cleaning and maintenance is required
iii) The floor surface should be of uniform slickness
Door service
i) A person manning the door in not normally required
ii) If it can be foreseen that conditions will exist requiring a person manning the door then the
hotel must provide that person.
iii) If the establishment has a person manning the door then it is liable if the person is negligent
and someone is injured.
Grounds
i) The establishment is responsible for maintaining its ground in a safe condition just like the interior of
the
facility. Particular attention should be given to the following:
(1) Walkways
(2) Visibility
(3) Holes
(4) Changes in elevation
(5) Ramps and stairs
Amusement rides
(a) Must be regularly inspected and maintained in proper working order
(b) Must be controlled by an operator, particularly if it is used by children
(c) Must have required warning signs/instructions
Outdoor lighting
i) Must provide sufficient lighting so the guests can safely navigate the property.
ii) Light must be positioned so that they do not present a hazard
- Cause impaired vision
- Create a bumping or tripping hazard
iii) Not all paths need to be lighted if there is a lighted path available that will take a guest where
he/she needs to go.
The following is a description of key areas that are classified as special duties;
Security
a) Any business that invites the public onto its premises must take reasonable steps to
protect the invitees from foreseeable assaults.
b) Foreseeable assault is one that could reasonably be predicted give the history of the
area or the circumstances surrounding the incident.
c) Unpredictable attack is one that could not be foreseen or one that once the potential
was recognized there was not sufficient time to prevent the assault.
d) Adequate security can eliminate liability, but it is important to match the level of
security to the circumstances.
f) Emergency/Disaster Plan: you need to ensure that you have a plan in place to
reasonably protect/assist your guest in the event of an emergency/disaster.
Fire Safety
The establishment must comply with all statutory safety requirements – however this may not
guarantee freedom of liability
The establishment must ensure that all staff are properly trained how to respond to a fire.
If the fire start in your establishment and the origin of the fire was a result of negligence then it may
be liable for damage done to adjoining structures
In certain cases the negligence related to a fire can result in criminal charges being filed.
Medical Care
a) You are not required to have trained medical persons on staff for your guests however if you do the
person must be competent and properly licensed.
The Hotel-Guest Relationship
A hotel, whether private or government owned is a public facility as it is used by the general public. A
hotelkeeper is therefore engaged in a “public employment” and therefore must take into the
hotel (with certain exceptions) travelers who apply to be received as guests, because it is open to the
public.
Guest Reservations
Reservations: may be oral or contained in written correspondence. Whatever the case, reservations
must recite the material points:
• Dates
• Rate
• Number of rooms
• Nature of the accommodations
• Number of persons
Rooms for which the hotel has received deposits must be available as promised or the hotel faces
consequences and fines.
Failure of a guest to use a reservation may result in damages to the hotel. The damages are the
difference between the agreed contract price and the cost of supplying the accommodations. In
addition, if the hotelkeeper rents the rooms to other guests, the original guest is entitled to a credit
therefore.
Samples Case
- While driving to the hotel Freeman saw a billboard advertising a show to be performed by a
popular pop musician on Sunday night.
- He checked in Friday night, and stayed until Saturday.
Concord Hotel loses income because that room is vacant for Sunday. Had Freeman reserved it for 2
days, the hotel would have sold the room to another visitor.
Concord sues the lawyer Freeman for loss of business. Concord wins and Freeman has to pay for
the loss and costs of the suit.
Specific Factors to Consider When Making Contracts in the Hospitality and Tourism Industry
There should be clauses to cover the service provider in case of Impossibility of performance by reason
of labor strikes, civil disorders, etc
There should also be clauses covering possibility of Cancellation e.g. cancellation of reservation.
Attrition clause.
In case of group contracts, e.g. a group of tourists taking a whole hotel block, there should be an
Attrition clause. This is a specific provision in a contract that spells out a formula for calculating
charges in the event that the full room block is not used
- Hotel has an affirmative duty not to allow unregistered and unauthorized third parties access to
its guests’ rooms.
- Hotel owes the guest the rights of privacy and peaceful possession, except for routine
housekeeping and emergencies.
- Hotel employees should never give a room key to someone who is not registered to the room.
- Hotels generally should not allow police to have access to a room unless they have a warrant.
A search by police without warrant may be legal if it is in connection to a lawful arrest of the
guest.
Note: This right is terminated when the agreement to use the room ends (checkout time).
EVICTION OF GUESTS
In the case of a guest who has overstayed the agreed number of days at the hotel, the hotel has the
right to require such guest to leave. The hotel also has the right to demand payment for the excess
days or have the guest detained and to seek legal redress
When a hotel guest is taken ill with a contagious disease, the proprietor, after notifying the guest to
leave, has the right to remove such guest in a careful manner and at the appropriate hour to some
hospital or other place of safety, provided this does not imperil the guest’s life.
The disabilities act prohibits discrimination against individuals with disabilities in the full and equal
enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of
public accommodation, requiring that these be offered in the setting appropriate to the needs of the
individual, except where it poses a direct threat to the health or safety of others.
Individuals with disabilities must be given opportunities to enjoy the same goods or services as non-
disables persons
Hotel’s Duty to Protect Guests
‘Reasonable care’ is the care that a reasonably prudent hotel would have used under the
circumstances
However the hotel is not an “insurer” of the guest’s safety for the following reasons;
- The hotel cannot guarantee that nothing bad will happen to the guest
- The hotel cannot possibly control everything and everyone that might cause harm to a guest
Like any other business, Hospitality and travel industries can be held liable for virtually anything and
everything since they involve people, property and multiple activies.
There are many risks that insurance can cover in hospitality and travel such as accident cover, fire,
theft , liquor liability, employees cover, product cover (incase a guest falls ill after consuming a product
served),
It only makes sense to have insurance cover; otherwise there are so many risks in hospitality and
tourism. Without insurance cover, the hotel, travel agent etc would have to take liability and would be
dealing with multiple law suits.
Below is an example of a suit that may arise and insurance would cover,
Warranty of Merchantability
This term is used to mean that the product (food) is suitable for its designed purpose and of at
least average quality and it is fit for human consumption.
The following violate Warranty of Merchantability:
Foreign/Natural Test:
- If an object in the food is a natural substance then the warranty of merchantability has not
been violated
- If an object in the food is a NOT natural substance then the warranty of merchantability has
not been violated
- If an object in the food that a reasonable person would not expect to find in the food, the
warranty of merchantability has been violated regardless if the object is natural or otherwise.
You could also have to prove that you were not negligent in purchasing, storing, preparing or serving
the food.
Hot Beverages
Failure to follow required safeguard may result in liability if a customer who eats your food becomes
ill. However, the customer must establish the food purchased from the defendant made them ill.
a. Arbitration:
A third party listens to the evidence in an informal hearing and rules. In most case the decision
cannot be appealed.
b. Mediation:
A mediator facilitates the discussion and tries to help both parties reach a mutually acceptable
solution. Mediator does not have the authority to impose a settlement.