AUGUST 2007

TIME: 2 Hours

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SUNW A Y UNIVERSITY COLLEGE

SCHOOL OF HOSPITALITY, TOURISM AND LEISURE MANAGEMENT

EXAMINATION FOR THE DIPLOMA IN HOSPITALITY AND TOURISM MANAGEMENT I DIPLOMA IN CONVENTIONS AND EVENTS MANAGEMENT

ACADEMIC SESSION 2007; APRIL 2005 (Hospitality) HBG2141: HOSPITALITY AND TOURISM LAW

INSTRUCTIONS TO CANDIDATES

This paper consists of 2 parts:

Part A (30 marks) - Questions 1-30 are multiple choice questions. Shade your answers in the Multiple Choice Answer Sheet provided. You are advised to use a 2B pencil.

Part B (70 marks) - TWELVE (12) short answer questions. Answer ALL questions in the Answer Booklet(s) provided.

MARKS ALLOCATION

PART MARKS ALLOCATED MARKS. OBTAINED
A 30
B 70
TOTAL ., 100 NAME OF CANDIDATE

STUDENT NO .

GROUP .

[Total Number of pages = 10 (Including the cover page)]

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PART A

: MU~ TIPLE CHOICE QUESTIONS (30 MARKS)

INSTRUCTION(S): Questions 1-30 are multiple choice questions. Shade your answers in the Multiple Choice Answer Sheet provided. You are advised to use a 28 pencil.

1. A plaintiff who sues a defendant for breach of contract is said to be taking:

a. a civil action

b. a criminal action

c. a statutory action

d. an equitable action

2. When Saloman sued Saloman & Co. he succeeded because:

i. by the doctrine of separate legal personality he was not personally liable for the debts of the company.

ii. he was a secured creditor.

iii. the doctrine of separate legal personality allows an action by members of the company against it.

iv. the doctrine of separate legal personality allows the company to own property in its own name.

a. i and ii only

b. i, ii and iii only

c. ii, iii and iv onlv

d. i, iii and iv only

3. Negligence is: ~,

a. a crime

b. a tort

c. a statute

d. a doctrine

4. No person can exclude or limit liability for death or personal injury which results from negligence. This is the essence of:

a. Section 2(1),Occupier's Liability Act 1957.

b. Section 2(2) Occupier's Liability Act 1957.

c. Section 2(1) Unfair Contract Terms Act 1977.

d. the defence of valenti non fit injuria.

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5. Where a person with special knowledge or skill makes a negligent

statement whicR results in another person who has relied on that statement to suffer loss, then an action would lie for:

a. fraudulent misrepresentation.

b. negligent misrepresentation at common law.

c. negligent misrepresentation under the Misrepresentation Act 1967.

d. innocent misrepresentation.

6. The first case which decided that an occupier of premises does owe a duty of care towards a trespasser is:

a. Latimer v AEC Ltd.

b. R Addie & Sons (Collieries) Ltd. V Dumbreck

c. British Railways Board v Herrington

d. Ogwo v Taylor

7. In Rose v Plenty, Rose's action against Plenty's employer succeeded because the prohibited act by Plenty:

a. resulted in Rose's injury.

b. benefited Plenty's employer.

c. was outside the scope of his employment.

d. was incidental to the job he was employed to do.

8. The test of the reasonable man in an action for negligence is used to

determine: '

a. the economic loss suffered by the plaintiff.

b. the breach of the duty of care by the defendant.

c. if the defendant has any valid defences.

d. the damage which results from the defendant's negligence.

9. Voluntary assumption of the risk of injury removed the liability of the defendant in:

a. Hedley Byrne & Co. v Heller & Partners

b. Stone v Taffe

c. Dulieu v White

d. ICI v Shatwell

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10. An exemption clause introduced into a contract after the contract was concluded was rendered invalid in:

a. Olley v Marlborough Court Ltd.

b. Chapelton v Barry UDC

c. Salmon v Seafarer Restaurants Ltd.

d. Maclenan v Segar

11. What is the effect of a letter of acceptance sent by post to the offeror which fails to reach him?

a. Acceptance is deemed to be complete.

b. The original offer is cancelled.

c. The acceotance is not complete.

d. A counter-offer is made.

12. There must be a causal link bet Neen the negligence of the defendant and the damage suffered by the plaintiff in an action for negligence. This is explained in:

a. the 'but for' test.

b. the defence of contributory negligence.

c. the defence of valenti non fit injuria.

d. the 'reasonable man' test.

13. The liability of a minor to pay for goods purchased by him is limited to paying for necessaries. This was clearly seen in:

i. Campbell v Shelbourne Hotel Co. Ltd. ii. Nash v Inman

iii Maclenan v-Seqar iv Elkington v Amery

a. ii and iv only

b. it ii and iii only

c. i and iv only

d. i and iii only

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14. The victim of a breach of contract can only claim damages where the breach relates to:- .

a. a mid-term

b. an exclusion clause

c. a condition

d. a warranty

15. When a commodity or service is advertised on a huge billboard along the highway, that advertisement is most likely:

a. a counter-offer

b. an invitation to treat

c. an offer

d. an acceptance

16. When a party to a contract agrees to pay the consideration at a date later than the time fixed for performance of the contract, the consideration is said to be:

a. executed

b. cancelled

c. accepted

d. executory

17. Which of the following statements are TRUE about the application of the doctrine of res ipsa loquitur?

i. The burden of proof shifts to the plaintiff

ii. The plaintiff does not have to prove the 3 important elements of the tort of negtigence

iii. The inference of negligence may be drawn from the facts of the case iv. The defendant bears the onus of disproving negligence

a. ii and iii only

b. i, ii and iii only

c. ii, iii and iv only

d. i, iii and iv only

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18. A limited company's greatest advantage is that:

a. it shares the same legal personality as its members.

b. its directors pay income tax monthly.

c. it can create a floating charge on its assets to secure a loan obtained for the business.

d. the liability of its members is limited to the amount of their investment.

19. A higher duty of care is owed towards young children, very old people, blind or physically disabled people. This is seen in the operation of the:

a. egg-shell skull rule

b. defence of volenti non fit injuria

c. defence of contributory negligence

d. doctrine of res ipsa loquitur

20. When a defendant in an action for negligence has done everything within the cost and practicability of overcoming the risk of injury, which element of the tort of negligence has NOT been proven?

a. The economic loss element

b. The duty of care element

c. The breach of duty of care element

d. The resultant damage element

21. The main points to be proven in an action for vicarious liability are: i. that the employee committed the wrong in the course of his' employment

ii. that there was an employer-employee relationship between the defendant-and the wrongdoer

iii. that there was a duty of care owed by the defendant to the plaintiff iv. that there was resultant damage suffered by the plaintiff

a. ii and iii only

b. i and iv only

c. i and ii only

d. iii and iv only

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22. The defence of contributory negligence is available:

a. when the plaintiff has voluntarily assumed the risk of his own injury;

b. when the defendant bears sole responsibility for the negligence towards the plaintiff.

c. when the plaintiff has contributed towards the extent of his own injury.

d. when the defendant has not been negligent in any way.

23. The financial limitation on the liability of an innkeeper towards the

property of the guest is seen in:

a. Section 2(1) Hotel Proprietors Act 1956.

b. Section 2(3) Hotel Proprietors Act 1956.

c. Section 2(2) Hotel Proprietors Act 1956.

d. Carpenter v Haymarket.

24. Which of the following establishments would fall within the definition of a hotel?

a. One that offers food, drink and sleeping accommodation without special contract.

b. One that offers food, drink and sleeping accommodation only with prior booking.

c. One that offers food and drink but no sleeping accommodation.

d. One that offers food, drink and sleeping accommodation only to long-term guests.

25. An innkeeper would NOT be liable for property lost, stolen or damaged within the hospituum of the inn if:

a. the property belongs to a traveler.

b. the property is a vehicle.

c. the property is lost, stolen or damaged because of the negligence of the guest.

d. the property is lost, stolen or damaged due to an act of God.

26. Overbooking is an offence under Section 14(1) Trade Descriptions Act 1968 as a result of the decision in:

a. Sunair Holidays Ltd. v Dodds

b. British Airways Ltd v Taylor

c. R v Thompson Ltd.

d. Wings Ltd. v Ellis

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27. All the following cases relate to a claim for damages for disappointment arising from a breach of contract EXCEPT:

a. Jarvis v Swan's Tours

b. Cook v Spanish Holidays Ltd.

c. Attia v British Gas pic

d. Jackson v Horizon Holidays Ltd.

28. An innkeeper is not bound to provide accommodation to a traveller in all the following circumstances EXCEPT:

a. where the inn is fully booked.

b. where the traveller is not in a fit state to be received.

c. where the traveller does not appear able and willing to pay a reasonable sum for the accommodation.

d. where the traveller is a woman.

29. In Constantine v Imperial London Hotels Ltd., the plaintiff was turned away because:

i. there was only sufficient food for existing guests ii. there was no room at the hotel

iii. he was black

iv. the innkeeper preferred to accommodate him at another hotel owned by them

a. i, ii and iii only

b. ii, iii and iv only

c. ii only

d. iii only

30. A fresh offence under Section 14(1) Trade Descriptions Act 1968 is committed every time the statement is read by a new person. This was the decision of the court in:

a. Wings Ltd. v Ellis

b. Sunair Holidays Ltd. v Dodds

c. R v Thompson Ltd.

d. R v Sunair Holldavs

END OF PART A

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i. the neighbour principle

ii. the doctrine of separate legal personality

iii. the doctrine of privity of contract

iv. the definition of an occupier

v. the definition of a trespasser

(1 mark) (1 mark) (1 mark) (1 mark) (1 mark)

PARTB

: ~HORT ANSWER QUESTIONS (70 MARKS)

INSTRUCTION(S): Answer ALL questions in the Answer Booklet(s) provided.

1. Jennifer and Johnson were working at the Heat Wave Restaurant. Johnson was the chief chef-in-charge for the whole production line. One day, Johnson forgot to switch off the oven and caused a fire at the restaurant. Jennifer was admitted to hospital due to injuries suffered in this fire. Also, one of the kitchen assistants, Maria, suffered a shock as a result of this incident. Advise the management of the Heat Wave Restaurant on the possible actions against them and whether they would be liable. (8 marks)

2.

Explain the significance of the neighbour principle.

(5 marks)

3. Explain how the size and nature of the enterprise influence the choice of

business enterprise for the entrepreneur. (3 marks)

4. What is the effect of the defences available to an action for negligence?

(4 marks)

5. The doctrine of separate legal personality protects an entrepreneur who forms a limited liability company. Explain and illustrate this statement.

(5 marks)

6. Name the cases which highlight the following:

7. Explain the following cases and highlight their importance in the law of contract:

i. ii. iii. iv. v.

Dulieu v White

Household Fire Insurance Co. v Grant Nash v Inman

Partridge v Crittenden

Olley v Marlborough Court Ltd.

(2 marks) (2 marks) (2 marks) (2 marks) (2 marks)

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9.

Outline the doctrine of res ipsa loquitur.

(7 marks)

8. Discuss the common law liability of an occupier towards lawful visitors.

. (5 marks)

10. A guest at a hotel trips and falls and sustains serious injuries when he fails to notice a step in his path due to poor lighting. Upon deciding to take action against the hotel he learns that several guests have suffered the same fate in the past and nothing was done to rectify the problem. A different coloured carpeting or a notice to warn of the step may have helped to avoid the problem. The guest who is eighty-two years old wants to know whether his action against the management of the hotel would be successful.

(10 marks)

11. Discuss what is meant by a 'reasonable excuse' in relation to the duty of the

innkeeper to provide refreshment. (5 marks)

12. At 10.00 p.m. Alfonso, a traveller, calls at the Regency Hotel and requests a room and is told that all rooms are taken. Alfonso then asks that he would like to sleep at the lobby. You are asked by the reception staff if the hotel is obliged

to provide him accommodanon. (3 marks)

END OF EXAM PAPER

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