Question 1

The best way to ensure legal protection for a hotelier and to indicate acceptance of an offer is?

Accepted Answer

The best way to ensure legal protection for a hotelier and to indicate acceptance of an offer is to agree to the offer in writing. Written agreements provide clear evidence of the terms and conditions of the offer and acceptance, and can be used as a legal record in case of disputes. Verbal or non-verbal agreements, acceptance of a deposit, or acceptance of partial or full payment may not provide sufficient legal protection and may not clearly indicate acceptance of the offer.

Question 2

The UCC is the acronym for the laws regulating purchase and sale agreements for land, which gives protections only to buyers.

Accepted Answer

The UCC (Uniform Commercial Code) actually applies to sales of goods, not land. It also provides protections to both buyers and sellers in such transactions. Laws regulating purchase and sale agreements for land vary by state and may be governed by real estate law.

Question 3

The two most common types of dispute resolution alternatives are

Accepted Answer

The two most common types of dispute resolution alternatives are arbitration and mediation. Litigation and settlement may be common, but they are not considered alternative dispute resolution methods. Mediation and small claims court may be common for certain types of disputes, but they are not the two most common types. Mediation and litigation are both alternatives, but they are not the two most common.

Question 4

A valid contract needs consideration flowing to both parties.

Accepted Answer

Consideration is an essential element of a valid and enforceable contract. It refers to something of value given by one party in exchange for something of value given by the other party. Both parties must benefit from the contract, and consideration must flow in both directions for a contract to be valid.

Question 5

The Uniform Commercial Code requires you to?

Accepted Answer

The Uniform Commercial Code (UCC) is a set of laws governing commercial transactions in the United States. It requires parties to fulfill any promises made in a sales or purchasing contract. This includes fulfilling delivery dates, quantity and quality of goods, and payment obligations. Failure to do so can result in legal action. A and B are not requirements of the UCC, and D is not a common practice in the industry.

Question 6

Acceptance of an offer must mirror exactly the terms of the offer in order for the acceptance to make the contract valid.

Accepted Answer

This is known as the "mirror image rule," which states that an acceptance must be an exact match of the offer in all material terms in order for a contract to be formed. Any deviation from the offer constitutes a counteroffer, which the original offeror may accept or reject.

Question 7

In all cases, it is unlawful to breach a contract.

Accepted Answer

Breaching a contract can be unlawful and lead to legal consequences, but there are exceptions where a breach may be legally justified, such as impossibility of performance, rescission by mutual agreement, or force majeure.

Question 8

It is the responsibility of the courts to decide the relative fairness of consideration.

Accepted Answer

The courts typically do not evaluate the fairness of the consideration given in a contract, as long as something of legal value is exchanged between the parties. The concept of consideration is more about ensuring that a contract is legally binding rather than assessing the fairness or equivalence of the exchange.

Question 9

In a lawsuit, the person or entity that initiates litigation against another is known as the _____.

Accepted Answer

The person or entity that initiates litigation against another is known as the plaintiff. The defendant is the party against whom the plaintiff initiates the action. The terms "opposite party," "litigant," and "respondent" are not specific enough to identify the party that initiates the lawsuit.

Question 10

In a lawsuit, the person or entity against which litigation is initiated is known as the ______.

Accepted Answer

The defendant is the person or entity against which litigation is initiated, therefore A is the correct answer. B and C are incorrect because they do not specifically refer to the party being sued. D and E are incorrect because they refer to the party initiating the lawsuit, not the one being sued.

Question 11

An enforceable contract contains an offer, an acceptance and _______.

Accepted Answer

Consideration refers to the exchange of something of value (such as money, goods, or services) between the parties involved in the contract. It is an essential element of an enforceable contract because it shows that both parties have agreed to give and receive something in return for their promises. Without consideration, a contract may be considered null and void. Choices A, B, D, and E are incorrect because they do not encompass all the necessary elements of an enforceable contract.

Question 12

The Foreign Corrupt Practices Act is a law that applies to U.S. companies when doing international transactions with non-U.S. business partners.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) is a U.S. law that applies to U.S. companies and individuals engaged in international business. It prohibits the bribery of foreign government officials or political parties for the purpose of obtaining or retaining business.

Question 13

"Consideration" in the hospitality industry is often?

Accepted Answer

Consideration in the hospitality industry can be any of these three things: money, use of property, or a promise to act or not act. Therefore, the best choice is D, all of the above.

Question 14

The Latin phrase "Caveat Emptor" in the hospitality industry refers to?

Accepted Answer

The Latin phrase "Caveat Emptor" translates to "let the buyer beware" which means that the burden of determining the quality and price of a product falls on the buyer. In the hospitality industry, this means that guests should be aware of the quality and price of the services they are purchasing from hotels, restaurants, and other establishments. It is up to the buyer to research and make an informed decision before making a purchase.

Question 15

A contract has to be in writing to be enforceable by the courts.

Accepted Answer

In many cases, contracts can be enforceable even if they are not in writing. However, certain types of contracts, such as contracts for the sale of real estate, must be in writing to be enforceable under the Statute of Frauds. It is generally recommended to have a written contract to avoid confusion or disputes, but it is not always a legal requirement.

Question 16

When drafting international contracts, it is wise to provide for a dispute resolution format with a provision that has senior executives trying to resolve disputes first.

Accepted Answer

Including a provision for senior executives to try to resolve disputes first can potentially save time and money in resolving disputes, as well as preserve the business relationship between parties.

Question 17

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.

Accepted Answer

The UCC (Uniform Commercial Code) is a law that regulates purchasing agreements and provides protection to buyers, sellers, and financial lenders involved in contracts for the purchase of goods.

Question 18

All contracts, whether verbal or written, must be for a legal purpose and in order to be enforceable, must consist of an offer, acceptance and consideration.

Accepted Answer

This statement is true. In order for a contract to be legally binding, it must meet these basic requirements of an offer, acceptance, and consideration, and it must be for a lawful purpose.

Question 19

When drafting a hospitality contract, you should do all of the following except ______.

Accepted Answer

The answer of When drafting a hospitality contract, you should...

Quiz 4: Business Contracts