
Course Introduction
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Course Introduction
Hospitality Law provides students with a comprehensive understanding of the legal principles and regulations that govern the hospitality industry. The course covers key topics such as contracts, liabilities of innkeepers and restaurateurs, guest rights, employment law, safety and security obligations, licensing, and the management of legal risks associated with hotels, restaurants, and related businesses. Through case studies and current legal issues, students gain practical knowledge to navigate the complex legal environment of hospitality, ensuring both compliance and high standards of guest service.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by
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16 Chapters
2535 Verified Questions
2535 Flashcards
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Page 2
Richard A. Yates
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127 Verified Questions
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Sample Questions
Q1) When should a client ideally first discuss the issue of fees with a lawyer?
Answer: Fees should be discussed during the initial consultation.
Q2) Provide three examples of conduct that fail to meet the standards of professional responsibility for lawyers.
Answer: There are numerous possible responses. Examples provided in the text include failing to serve a client in a timely fashion, failing to respond to clients, failing to disclose to a judge that another judge had previously refused the same application, swearing a False affidavit, poor accounting of a trust account, improper transfers from trust accounts, and misappropriation of trust funds.
Q3) A small business owner
A) is wise to obtain legal aid for business matters rather than having to incur legal costs.
B) is automatically entitled to legal aid assistance.
C) is usually not able to receive legal aid with respect to the type of legal issues involving the business.
D) should always use duty counsel rather than having to retain a lawyer.
E) should retain duty counsel to draft contracts outlining legal duties.
Answer: C
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Sample Questions
Q1) Why is law important?
Answer: It determines how effectively we interact with one another. It governs personal and commercial relationships.
Q2) Which one of the following is a Charter right that the provinces could not override through the use of the notwithstanding clause (Section 33 of the Charter)?
A) The right to move anywhere you want in Canada
B) The right not to be subjected to any cruel or unusual punishment
C) The right to worship who, how, or what you wish
D) The right to not be discriminated against because you are black
E) The right to be told why you are being arrested
Answer: A
Q3) "If somebody did not like the decision of the judge in the common law court, they could appeal to the Court of Chancery." Indicate what is wrong with that statement.
Answer: The Court of Chancery was a separate court system altogether. You didn't need to appeal from the common law courts to the Courts of Chancery. Instead, you went to the Chancery in the first place because you knew that there would be no adequate remedy provided or available in the common law courts.
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Sample Questions
Q1) Which of the following is False with regard to administrative law?
A) A writ of certiorari renders the decision of an inferior body as having no legal effect.
B) A writ of mandamus can force the administrator to perform his or her duty.
C) If a person's rights have been violated by an administrative tribunal, he can go to the courts for a judicial review, which is not truly an appeal, but merely a request for the court to exercise its supervisory jurisdiction.
D) A privative clause will always successfully prohibit the courts from reviewing a decision made by a tribunal.
E) A court can exercise its right of judicial review when an error of law on the record has been made.
Answer: D
Q2) Contrast the position of the victim in a criminal and a civil trial.
Answer: In a civil trial, the victim is usually the one suing the defendant, whereas in a criminal trial, the victim is a witness and the Crown or government is prosecuting.
Q3) What is the standard of proof used in a criminal matter?
Answer: Beyond a reasonable doubt.
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Sample Questions
Q1) Explain the requirements under the Personal Information Protection and Electronic Documents Act.
Q2) Explain any limitation on the principle of vicarious liability in the employment context.
Q3) In tort, damages attempt to put the victim in the position he would have been in had the tort never taken place.
A)True
B)False
Q4) When a person throws a hammer at another and that person ducks, this is an example of an assault.
A)True
B)False
Q5) An act that breaches a contract is inherently wrong.
A)True
B)False
Q6) The term that is used in tort law to describe a situation where an employer is held responsible for the conduct of the employee is ________.
Q7) Discuss the position of a political cartoonist in terms of defamation law.
Q8) Explain under what circumstances the defence of fair comment can be lost.
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Sample Questions
Q1) A surety bond provides assurance that the party to a contract will perform its part of the contract.
A)True
B)False
Q2) What is the last clear chance doctrine?
Q3) It is up to an insured whether the insurer repairs or replaces damaged goods. A)True
B)False
Q4) What is the forfeiture rule?
Q5) When the Court recognizes pre-existing frailties and the award of damages aims at restoring the plaintiff to that position, we say the Court is applying ________.
Q6) Explain the potential liability faced by professionals and how the risks associated with such liability can be minimized.
Q7) A reasonable person is one who is prudent and careful. A)True B)False
Q8) Explain under what circumstances the defence of remoteness can be used in a negligence action.
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Q9) What elements must be established in order to succeed in a negligence action?

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Q1) Joe offered to sell Harry his car and agreed to hold the offer open for one week, expiring Saturday at noon. The Sunday after the offer was said to have expired, Harry phoned Joe to tell him that he decided to accept his offer and purchase his car. Joe said at that time that he had decided to keep the car and was just about to phone Harry to revoke the offer. Harry said, "Too bad," and demanded performance of the contract. Explain the legal responsibilities of the parties.
Q2) Consideration is restricted to the exchange of money.
A)True
B)False
Q3) For the requirement of consideration to be satisfied, at least one of the parties must have performed what they promised.
A)True
B)False
Q4) A signature equivalent for electronic documents might be a password or some other form of encryption.
A)True
B)False
Q5) A one-sided promise the courts will not enforce is known as ________.
Q6) Describe electronic signatures with respect to capacity.
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Sample Questions
Q1) The case of Canadian Imperial Bank of Commerce v. Milhomens examined the effect of one party's insanity on a contract. What did the Court find?
A) For a contract to be voidable because of insanity, one party must be insane and the other party must have known (or ought to have known) of the insanity.
B) If a person has the mental faculties to sign a contract, that person cannot be insane.
C) If an insane person enters into a contract, that contract is automatically void.
D) Contracts are not enforceable by either party if one party can establish a mental defect.
E) The relevant test for insanity is simply whether one party believed the other to be insane at the moment the offer was made.
Q2) How do the courts determine whether it is reasonable for the parties trying to enforce the agreement to think that a legally binding contract has been created?
Q3) Indicate 4 categories of persons that have their capacity to enter into contracts limited to some extent.
Q4) What is an indemnity?
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Sample Questions
Q1) Non est factum is available as a defence even when there is negligence on the part of the person claiming it.
A)True
B)False
Q2) Undue influence takes place when one person uses violence to force another to enter into a contract.
A)True
B)False
Q3) What is the significance of an assignment qualifying as a statutory assignment?
Q4) An assignee is in no better position than the original contractor.
A)True
B)False
Q5) Distinguish between innocent and fraudulent misrepresentation, indicating why the distinction is important.
Q6) What does it mean that an assignee is "subject to the equities"?
Q7) Explain what is meant by a "negotiable instrument."
Q8) Explain the impact of the principle of privity of contracts.
Q9) Explain what is meant by a "chose in action."
Q10) Explain what is meant by a novation.
Q11) In what way is a trust an exception to the privity rule? Page 10
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Q1) Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.
Q2) "In contract law, warranty is a promise by the manufacturer of a product to be responsible to make repairs on that product, if it's defective." Discuss the accuracy of this statement.
Q3) What is the result of a breach of a significant term of a contract resulting in a major failure to perform?
Q4) Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?
Q5) ________ occurs when the court orders the defaulting party to live up to the terms of the contract.
A) An injunction
B) Specific performance
C) An accounting
D) Quantum meruit
E) Compensation
Q6) What is the result of a repudiation?
Q7) Explain what is meant by an anticipatory breach.
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Sample Questions
Q1) Which of the following is an example of just being an agent as opposed to an employee?
A) Joe worked in the mailroom of Smith Textiles, sorting mail.
B) Joe worked as a mechanic for Smith Used Cars Ltd.
C) Joe worked as a janitor for Smith Textiles.
D) Joe worked as the purchasing agent for Smith Textiles Ltd.
E) Joe worked as a delivery driver for Smith Textiles Ltd.
Q2) Dennis, Sam, George, and Ray were partners in an accounting business, and Ray decided he wanted to retire. He sold his share of the partnership to Leonardo, but Leonardo is not a partner unless the other partners approve the change.
A)True
B)False
Q3) Explain what a retiring partner should do to ensure she is no longer liable for the company's obligations.
Q4) Distinguish between an agent and an employee.
Q5) It is possible for a principal to be bound by the acts of an independent agent even where no contract of agency exists between them.
A)True
B)False
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Q1) Smith, Jones, and Brown incorporated XYZ Ltd. The three were sole shareholders, directors, officers, and employees. Jones and Brown disliked working with Smith. They knew he was good for the business, but they disliked his personality and politics. After a year, Jones and Brown, as directors, removed Smith as an officer and employee and raised their own salaries as employees. They then voted Smith out as a director at the next shareholders' meeting. Which one of the following provisions would aid Smith?
A) Relief-from-oppression provisions
B) Pre-emptive right provisions
C) Indoor-management rule
D) Derivative-action provisions
E) Dissent procedures
Q2) Distinguish between selling the assets of a corporation and selling its shares.
Q3) A debenture is likely to be secured.
A)True
B)False
Q4) What is typically the most expensive form of business organization to create and maintain?
Q5) Explain under what circumstances a shareholder will not be permitted to sell his shares.
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Sample Questions
Q1) As managers and other executives owe a fiduciary duty to their employer, they may find themselves somewhat restricted in what they can do even after they leave their employment.
A)True
B)False
Q2) Under what circumstances can an employee be terminated without notice?
Q3) Which one of the following is correct with respect to employee rights?
A) Interactions between employees and their employers outside the workplace cannot constitute employment-related harassment.
B) All employers in public or private sectors now have an obligation to balance their workforce so that an equal number of men and women are employed.
C) Where an employer violates the human rights of an employee, that employee must be prepared to sue to enforce those rights.
D) Mandatory retirement at 65 has been abolished by the Supreme Court of Canada.
E) There is a duty imposed on the employer to take reasonable steps to accommodate disabled employees.
Q4) To what does the term "check-off provision" refer?
Q5) Distinguish between a strike and a lockout.
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Sample Questions
Q1) The mere possibility of confusion is sufficient to block a trademark application.
A)True
B)False
Q2) In Harvard College v. Canada (Commissioner of Patents), Harvard College sought protection for a genetically altered mouse. What was the result given the decision of the Supreme Court of Canada?
A) Unless the Patent Act is amended, higher life forms can only be patented under the doctrine of "sound prediction."
B) The oncomouse was granted patent protection on the basis that it was not the product of the laws of nature.
C) The oncomouse was granted patent protection on the basis that it was the product of inventiveness.
D) The oncomouse was granted patent protection on the basis that it was a non-naturally occurring composition of matter.
E) Unless the Patent Act is amended, higher life forms cannot be patented in Canada.
Q3) Indicate three things that cannot be patented.
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Q1) What's the significance of an item being identified as a trade fixture?
Q2) Which of the following is the correct definition of a chattel?
A) A chattel is a name used to describe the land registration system in place in the Western provinces.
B) Chattel is an intangible form of personal property, such as a debt or claim.
C) Chattel refers to intellectual property such as patents and copyrights.
D) Chattel is the term used to describe tangible personal property or movables.
E) The term chattel is the broad term used to describe any kind of property interest.
Q3) An estate in the land describes a person's right to the exclusive possession and use of that land.
A)True
B)False
Q4) When people have a tenancy in common and one of them dies, his or her share in the property goes to the survivor.
A)True
B)False
Q5) Real property refers to land only.
A)True
B)False
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Q1) When a security interest is taken on personal property in a PPSA jurisdiction, the borrower temporarily transfers title to lender.
A)True
B)False
Q2) Student loans survive bankruptcy and remain payable for up to seven years after the debtor ceases to be a student.
A)True
B)False
Q3) Real and personal property can be used to secure a loan.
A)True
B)False
Q4) If no builders' liens are registered within the specified time, the owner gives the holdback to the general contractor.
A)True
B)False
Q5) What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?
Q6) A security not fixed on any specific assets is called a security interest ________.
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Q1) If the contract doesn't say who bears the loss if an item is lost or stolen, the Sale of Goods Act says risk goes with title. If the contract doesn't say when the title will pass, the Sale of Goods Act implies when it will pass. In which of the following will the statute imply that title will pass to the buyer at the time of the contract?
A) George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday.
B) Maureen contracts for Ms. Roberts' next year's pumpkin crop.
C) Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container.
D) Azar goes into a store specializing in old woodworking tools. He chooses a $1000 tooling machine. The contract provides that it will be delivered to his workshop the next morning and he will pay for it in one month.
E) While at Sears, Preston decides to buy the style of sofa he sees on display. He pays cash and the store arranges to have one like it, covered in the material he selects, delivered directly to him from the factory.
Q2) Explain what is meant by the term "consumer transactions."
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