Exam 5: Significant Hospitality Contracts

Indemnification means to make one whole; to reimburse for a loss already incurred.

The person or business that has sold and/or granted a franchise is the _______.

In the lodging industry, payment can be made if the hotel agrees to directly bill the company or group for all the charges.

A hospitality manager may be responsible for which type of legal agreement(s)?

A well-developed group lodging contact will include detailed language about a variety of items including how room rates will be calculated if the contract is signed prior to the establishment of the group's final room rates.

Which of the following is a major element of management agreements?

An operating agreement is the same document as a management agreement.

Which of the following represents a fee that is ordinarily paid by the franchisee to the franchisor?

Exculpatory clauses seek to put blame on the hospitality operator in certain situations.

A Management Agreement is the legal agreement that defines the responsibilities of a business owner and the management company chosen to operate the owner's business.

Attrition in hospitality means ______.

Franchisors are not required to disclose the restrictions on what the franchisee may sell in the franchise business and how it may be sold.

The Federal Trade Commission is tasked with verifying the information contained in all disclosure documentation provided by the franchisor to a prospective franchisee.

According to the law, franchisors must provide potential investors with a basic disclosure document and are required to guarantee a profit to the franchisee in the third year of the franchise operation.

One of the most important components of conference services contacts is the language used to establish and assign responsibility for the group's _________.

A well drafted conference service contract will contain a provision for cancellation by the group. If a group decreases the number of contracted attendees, this is known as _____ and a provision should also be stated in the conference service contract.

Which of the following is not an advantage when purchasing a franchise?

Which government agency regulates unfair or deceptive trade practices in the offering of franchises?

Signs such as "Swim at Your Own Risk" would be a good example of what type of contractual provision?

The country of China strictly prohibits franchising by businesses.