Stephen C. Barth is an American lawyer, award-winning professor, author, keynote speaker, and entrepreneur. In his 35+ years at the Conrad N. Hilton College, University of Houston, where he has focused on hospitality law and leadership, Stephen has taught 16,000+ students, published 150+ articles, and delivered 500+ presentations to business travel, hotel, restaurant, club, and meeting industry audiences. He is a regular industry speaker whose insights and perspectives have been featured on the CBS Morning Show and in the New York Times, Washington Post, and more. Diana S. Barber is a lawyer, speaker, consultant, educator, and co-author providing support to hospitality companies nationwide. For nearly two decades, Diana has been teaching at Georgia State University, in the J Mack Robinson College of Business.

• Preface ixAcknowledgments xiiiAbout the Companion Website xv1 Prevention Philosophy 11.1 The Future Hospitality Manager and the Legal Environment 11.2 The Hospitality Manager and Legal Management 2Legally Managing at Work: Applying the STEM Process in Hospitality Management 51.3 Ethics and the Law 6International Snapshot: Mitigating Risks Associated with Legal and Ethical Compliance in International Business Transactions 11What Would You Do? 12What Did You Learn in this Chapter? 122 Government Agencies that Impact the Hospitality Industry 132.1 Federal Regulatory and Administrative Agencies 132.2 State Regulatory and Administrative Agencies 272.3 Local Regulatory and Administrative Agencies 312.4 Regulatory Interaction and Oversight Impacting Travel and Tourism 332.5 Managing Conflicting Regulations 38Legally Managing at Work: Recommended Steps for Responding to Inquiries and Complaints by Government Agencies 382.6 Responding to an Inquiry 392.7 Monitoring Regulatory Change 40International Snapshot 40What Would You Do? 42What Did You Learn in this Chapter? 423 Hospitality Business Structures 433.1 The Importance of Business Structure 433.2 Common Hospitality Organizational Structures 443.3 Common Hospitality Operating Structures 493.4 The Agency Relationship 53International Snapshot: A Comparative Overview of Business Entities in the Hotel Industry 56What Would You Do? 56What Did You Learn in This Chapter? 564 Contract Basics 574.1 Introduction to Contracts 574.2 Components of an Enforceable Contract 594.3 The Uniform Commercial Code 624.4 Preventative Legal Management and Contracts 63Legally Managing at Work: Eight Steps to Follow When Entering into Contracts 65Legally Managing at Work: Reducing No-show Reservations 68International Snapshot: International Contracts 69What Would You Do? 70What Did You Learn in this Chapter? 705 Significant Hospitality Contracts 715.1 Specific Contract Clauses 715.2 Franchise Contracts 785.3 Management Contracts 835.4 Conference Services Contracts 86International Snapshot 92What Would You Do? 93What Did You Learn in this Chapter? 936 Legally Managing Property 956.1 Introduction to Property 956.2 Purchasing Property 976.3 Financing the Purchase of Property 1026.4 Leasing Property 105Legally Managing at Work: Legal Considerations of Buying versus Leasing 1096.5 Respecting Intellectual Property Rights 110International Snapshot: U.S. Hotel Companies’ Options for Seeking Trademark Protection Abroad 115What Would You Do? 116What Did You Learn in this Chapter? 1167 Legally Selecting Employees 1177.1 Employee Selection 1177.2 Discrimination in the Selection Process 125Legally Managing at Work: Accommodating Disabled Employees 1287.3 Verification of Eligibility to Work 1297.4 The Employment Relationship 137International Snapshot: Canadian Employment Laws 140What Would You Do? 141What Did You Learn in this Chapter? 1418 Legally Managing Employees 1438.1 Employment Relationships 1438.2 Workplace Discrimination and Sexual Harassment 1478.3 Family and Medical Leave Act 1568.4 Uniformed Services Employment and Reemployment Rights Act 1578.5 Compensation 157Legally Managing at Work: Calculating Overtime Pay for Tipped Employees 1628.6 The Patient Protection and Affordable Care Act of 2010 1638.7 Managing Employee Performance 164Legally Managing at Work: Guidelines for Conducting Defensible Employee Terminations 1688.8 Unemployment Claims 1698.9 Employment Records and Retention 1718.10 Employment Posting 1738.11 Workplace Surveillance 173International Snapshot: Managing Employees Abroad 175What Would You Do? 176What Did You Learn in this Chapter? 1779 Your Responsibilities as a Hospitality Operator 1799.1 Duties and Obligations of a Hospitality Operator 1799.2 Theories of Liability 1809.3 Legal Damages 1849.4 Anatomy of a Personal Injury Lawsuit 184Legally Managing at Work: The Manager’s Role in Litigation 1889.5 Responding to an Incident 188Legally Managing at Work: Responding to an Accident 189International Snapshot: Negligence 192What Would You Do? 192What Did You Learn in this Chapter? 19310 Your Responsibilities as a Hospitality Operator to Guests 19510.1 Accommodating Guests 19510.2 Guest Privacy 199Legally Managing at Work: Law Enforcement and Guest Privacy 20010.3 Facility Maintenance 201Legally Managing at Work: Five Steps to Facility Evaluation 20710.4 Responsibilities to Nonguests 21110.5 Removal of Guests 212Legally Managing at Work: Responding to Guest Health Emergencies 214International Snapshot: Should Foreign Governments Adopt Provisions from the USA PATRIOT Act to Combat Terrorist Acts against the Hospitality Industry? 214What Would You Do? 215What Did You Learn in this Chapter? 21511 Your Responsibilities for Guests’ Property 21711.1 Liability for Guests’ Property 21711.2 Bailments 22011.3 Property with Unknown Ownership 223Legally Managing at Work: Disposing of Found Property 225International Snapshot: Limited Liability of Innkeepers in Canada 225What Would You Do? 226What Did You Learn in this Chapter? 22612 Your Responsibilities When Serving Food and Beverages 22712.1 Serving Food 227Legally Managing at Work: Steps to Take When a Guest Complains of Foodborne Illness 22912.2 Truth- In- Menu Laws 23012.3 Serving Alcohol 235International Snapshot: Understanding Barriers to Entry and Regulatory Requirements for Foreign Producers of Alcohol Seeking to Import to the United States 242What Would You Do? 243What Did You Learn in this Chapter? 24313 Legal Characteristics of Travel and Tourism 24513.1 Travel 24513.2 Travel Agents and Tour Operators 24913.3 Transportation and Common Carriers 25513.4 Tourism 26113.5 Online Travel Sales 267Legally Managing at Work: Internet Advertising Checklist 270International Snapshot: Government Support of Tourism 272What Would You Do? 273What Did You Learn in this Chapter? 27314 Safety and Security Issues 27514.1 The Importance of a Protected Environment 27514.2 Safety and Security Programs: Four- Step Safety and Security Management Method 278Legally Managing at Work: Establishing an Effective Guestroom Lock Policy 28514.3 Crimes Against Hospitality Businesses 288Legally Managing at Work: Procedures to Reduce the Incidence of Skipping 289Legally Managing at Work: Guidelines for Handling Credit Cards 290Legally Managing at Work: Personal Check Verification 29014.4 Human Trafficking 29214.5 Crisis Management Programs 293Legally Managing at Work: The Manager’s Responsibilities in a Crisis 296Legally Managing at Work: Guest Relations in a Crisis Situation 298Legally Managing at Work: Guidelines for Dealing with the Media During a Crisis 300International Snapshot: Legal Claims and Recovery for Injury Under Mexican Law 302What Would You Do? 303What Did You Learn in this Chapter? 30315 Managing Insurance 30515.1 Introduction to Insurance 30515.2 Types of Coverage 30715.3 Selecting an Insurance Carrier 31115.4 Selecting the Insurance Policy 31115.5 Policy Analysis 313International Snapshot: Hotels Operating Internationally Need to Think Globally 314What Would You Do? 316What Did You Learn in this Chapter? 316Glossary 317Index 323

Stephen C. Barth is an American lawyer, award-winning professor, author, keynote speaker, and entrepreneur. In his 35+ years at the Conrad N. Hilton College, University of Houston, where he has focused on hospitality law and leadership, Stephen has taught 16,000+ students, published 150+ articles, and delivered 500+ presentations to business travel, hotel, restaurant, club, and meeting industry audiences. He is a regular industry speaker whose insights and perspectives have been featured on the CBS Morning Show and in the New York Times, Washington Post, and more. Diana S. Barber is a lawyer, speaker, consultant, educator, and co-author providing support to hospitality companies nationwide. For nearly two decades, Diana has been teaching at Georgia State University, in the J Mack Robinson College of Business.

• Preface ixAcknowledgments xiiiAbout the Companion Website xv1 Prevention Philosophy 11.1 The Future Hospitality Manager and the Legal Environment 11.2 The Hospitality Manager and Legal Management 2Legally Managing at Work: Applying the STEM Process in Hospitality Management 51.3 Ethics and the Law 6International Snapshot: Mitigating Risks Associated with Legal and Ethical Compliance in International Business Transactions 11What Would You Do? 12What Did You Learn in this Chapter? 122 Government Agencies that Impact the Hospitality Industry 132.1 Federal Regulatory and Administrative Agencies 132.2 State Regulatory and Administrative Agencies 272.3 Local Regulatory and Administrative Agencies 312.4 Regulatory Interaction and Oversight Impacting Travel and Tourism 332.5 Managing Conflicting Regulations 38Legally Managing at Work: Recommended Steps for Responding to Inquiries and Complaints by Government Agencies 382.6 Responding to an Inquiry 392.7 Monitoring Regulatory Change 40International Snapshot 40What Would You Do? 42What Did You Learn in this Chapter? 423 Hospitality Business Structures 433.1 The Importance of Business Structure 433.2 Common Hospitality Organizational Structures 443.3 Common Hospitality Operating Structures 493.4 The Agency Relationship 53International Snapshot: A Comparative Overview of Business Entities in the Hotel Industry 56What Would You Do? 56What Did You Learn in This Chapter? 564 Contract Basics 574.1 Introduction to Contracts 574.2 Components of an Enforceable Contract 594.3 The Uniform Commercial Code 624.4 Preventative Legal Management and Contracts 63Legally Managing at Work: Eight Steps to Follow When Entering into Contracts 65Legally Managing at Work: Reducing No-show Reservations 68International Snapshot: International Contracts 69What Would You Do? 70What Did You Learn in this Chapter? 705 Significant Hospitality Contracts 715.1 Specific Contract Clauses 715.2 Franchise Contracts 785.3 Management Contracts 835.4 Conference Services Contracts 86International Snapshot 92What Would You Do? 93What Did You Learn in this Chapter? 936 Legally Managing Property 956.1 Introduction to Property 956.2 Purchasing Property 976.3 Financing the Purchase of Property 1026.4 Leasing Property 105Legally Managing at Work: Legal Considerations of Buying versus Leasing 1096.5 Respecting Intellectual Property Rights 110International Snapshot: U.S. Hotel Companies’ Options for Seeking Trademark Protection Abroad 115What Would You Do? 116What Did You Learn in this Chapter? 1167 Legally Selecting Employees 1177.1 Employee Selection 1177.2 Discrimination in the Selection Process 125Legally Managing at Work: Accommodating Disabled Employees 1287.3 Verification of Eligibility to Work 1297.4 The Employment Relationship 137International Snapshot: Canadian Employment Laws 140What Would You Do? 141What Did You Learn in this Chapter? 1418 Legally Managing Employees 1438.1 Employment Relationships 1438.2 Workplace Discrimination and Sexual Harassment 1478.3 Family and Medical Leave Act 1568.4 Uniformed Services Employment and Reemployment Rights Act 1578.5 Compensation 157Legally Managing at Work: Calculating Overtime Pay for Tipped Employees 1628.6 The Patient Protection and Affordable Care Act of 2010 1638.7 Managing Employee Performance 164Legally Managing at Work: Guidelines for Conducting Defensible Employee Terminations 1688.8 Unemployment Claims 1698.9 Employment Records and Retention 1718.10 Employment Posting 1738.11 Workplace Surveillance 173International Snapshot: Managing Employees Abroad 175What Would You Do? 176What Did You Learn in this Chapter? 1779 Your Responsibilities as a Hospitality Operator 1799.1 Duties and Obligations of a Hospitality Operator 1799.2 Theories of Liability 1809.3 Legal Damages 1849.4 Anatomy of a Personal Injury Lawsuit 184Legally Managing at Work: The Manager’s Role in Litigation 1889.5 Responding to an Incident 188Legally Managing at Work: Responding to an Accident 189International Snapshot: Negligence 192What Would You Do? 192What Did You Learn in this Chapter? 19310 Your Responsibilities as a Hospitality Operator to Guests 19510.1 Accommodating Guests 19510.2 Guest Privacy 199Legally Managing at Work: Law Enforcement and Guest Privacy 20010.3 Facility Maintenance 201Legally Managing at Work: Five Steps to Facility Evaluation 20710.4 Responsibilities to Nonguests 21110.5 Removal of Guests 212Legally Managing at Work: Responding to Guest Health Emergencies 214International Snapshot: Should Foreign Governments Adopt Provisions from the USA PATRIOT Act to Combat Terrorist Acts against the Hospitality Industry? 214What Would You Do? 215What Did You Learn in this Chapter? 21511 Your Responsibilities for Guests’ Property 21711.1 Liability for Guests’ Property 21711.2 Bailments 22011.3 Property with Unknown Ownership 223Legally Managing at Work: Disposing of Found Property 225International Snapshot: Limited Liability of Innkeepers in Canada 225What Would You Do? 226What Did You Learn in this Chapter? 22612 Your Responsibilities When Serving Food and Beverages 22712.1 Serving Food 227Legally Managing at Work: Steps to Take When a Guest Complains of Foodborne Illness 22912.2 Truth- In- Menu Laws 23012.3 Serving Alcohol 235International Snapshot: Understanding Barriers to Entry and Regulatory Requirements for Foreign Producers of Alcohol Seeking to Import to the United States 242What Would You Do? 243What Did You Learn in this Chapter? 24313 Legal Characteristics of Travel and Tourism 24513.1 Travel 24513.2 Travel Agents and Tour Operators 24913.3 Transportation and Common Carriers 25513.4 Tourism 26113.5 Online Travel Sales 267Legally Managing at Work: Internet Advertising Checklist 270International Snapshot: Government Support of Tourism 272What Would You Do? 273What Did You Learn in this Chapter? 27314 Safety and Security Issues 27514.1 The Importance of a Protected Environment 27514.2 Safety and Security Programs: Four- Step Safety and Security Management Method 278Legally Managing at Work: Establishing an Effective Guestroom Lock Policy 28514.3 Crimes Against Hospitality Businesses 288Legally Managing at Work: Procedures to Reduce the Incidence of Skipping 289Legally Managing at Work: Guidelines for Handling Credit Cards 290Legally Managing at Work: Personal Check Verification 29014.4 Human Trafficking 29214.5 Crisis Management Programs 293Legally Managing at Work: The Manager’s Responsibilities in a Crisis 296Legally Managing at Work: Guest Relations in a Crisis Situation 298Legally Managing at Work: Guidelines for Dealing with the Media During a Crisis 300International Snapshot: Legal Claims and Recovery for Injury Under Mexican Law 302What Would You Do? 303What Did You Learn in this Chapter? 30315 Managing Insurance 30515.1 Introduction to Insurance 30515.2 Types of Coverage 30715.3 Selecting an Insurance Carrier 31115.4 Selecting the Insurance Policy 31115.5 Policy Analysis 313International Snapshot: Hotels Operating Internationally Need to Think Globally 314What Would You Do? 316What Did You Learn in this Chapter? 316Glossary 317Index 323

Stephen C. Barth is an American lawyer, award-winning professor, author, keynote speaker, and entrepreneur. In his 35+ years at the Conrad N. Hilton College, University of Houston, where he has focused on hospitality law and leadership, Stephen has taught 16,000+ students, published 150+ articles, and delivered 500+ presentations to business travel, hotel, restaurant, club, and meeting industry audiences. He is a regular industry speaker whose insights and perspectives have been featured on the CBS Morning Show and in the New York Times, Washington Post, and more. Diana S. Barber is a lawyer, speaker, consultant, educator, and co-author providing support to hospitality companies nationwide. For nearly two decades, Diana has been teaching at Georgia State University, in the J Mack Robinson College of Business.

• Preface ixAcknowledgments xiiiAbout the Companion Website xv1 Prevention Philosophy 11.1 The Future Hospitality Manager and the Legal Environment 11.2 The Hospitality Manager and Legal Management 2Legally Managing at Work: Applying the STEM Process in Hospitality Management 51.3 Ethics and the Law 6International Snapshot: Mitigating Risks Associated with Legal and Ethical Compliance in International Business Transactions 11What Would You Do? 12What Did You Learn in this Chapter? 122 Government Agencies that Impact the Hospitality Industry 132.1 Federal Regulatory and Administrative Agencies 132.2 State Regulatory and Administrative Agencies 272.3 Local Regulatory and Administrative Agencies 312.4 Regulatory Interaction and Oversight Impacting Travel and Tourism 332.5 Managing Conflicting Regulations 38Legally Managing at Work: Recommended Steps for Responding to Inquiries and Complaints by Government Agencies 382.6 Responding to an Inquiry 392.7 Monitoring Regulatory Change 40International Snapshot 40What Would You Do? 42What Did You Learn in this Chapter? 423 Hospitality Business Structures 433.1 The Importance of Business Structure 433.2 Common Hospitality Organizational Structures 443.3 Common Hospitality Operating Structures 493.4 The Agency Relationship 53International Snapshot: A Comparative Overview of Business Entities in the Hotel Industry 56What Would You Do? 56What Did You Learn in This Chapter? 564 Contract Basics 574.1 Introduction to Contracts 574.2 Components of an Enforceable Contract 594.3 The Uniform Commercial Code 624.4 Preventative Legal Management and Contracts 63Legally Managing at Work: Eight Steps to Follow When Entering into Contracts 65Legally Managing at Work: Reducing No-show Reservations 68International Snapshot: International Contracts 69What Would You Do? 70What Did You Learn in this Chapter? 705 Significant Hospitality Contracts 715.1 Specific Contract Clauses 715.2 Franchise Contracts 785.3 Management Contracts 835.4 Conference Services Contracts 86International Snapshot 92What Would You Do? 93What Did You Learn in this Chapter? 936 Legally Managing Property 956.1 Introduction to Property 956.2 Purchasing Property 976.3 Financing the Purchase of Property 1026.4 Leasing Property 105Legally Managing at Work: Legal Considerations of Buying versus Leasing 1096.5 Respecting Intellectual Property Rights 110International Snapshot: U.S. Hotel Companies’ Options for Seeking Trademark Protection Abroad 115What Would You Do? 116What Did You Learn in this Chapter? 1167 Legally Selecting Employees 1177.1 Employee Selection 1177.2 Discrimination in the Selection Process 125Legally Managing at Work: Accommodating Disabled Employees 1287.3 Verification of Eligibility to Work 1297.4 The Employment Relationship 137International Snapshot: Canadian Employment Laws 140What Would You Do? 141What Did You Learn in this Chapter? 1418 Legally Managing Employees 1438.1 Employment Relationships 1438.2 Workplace Discrimination and Sexual Harassment 1478.3 Family and Medical Leave Act 1568.4 Uniformed Services Employment and Reemployment Rights Act 1578.5 Compensation 157Legally Managing at Work: Calculating Overtime Pay for Tipped Employees 1628.6 The Patient Protection and Affordable Care Act of 2010 1638.7 Managing Employee Performance 164Legally Managing at Work: Guidelines for Conducting Defensible Employee Terminations 1688.8 Unemployment Claims 1698.9 Employment Records and Retention 1718.10 Employment Posting 1738.11 Workplace Surveillance 173International Snapshot: Managing Employees Abroad 175What Would You Do? 176What Did You Learn in this Chapter? 1779 Your Responsibilities as a Hospitality Operator 1799.1 Duties and Obligations of a Hospitality Operator 1799.2 Theories of Liability 1809.3 Legal Damages 1849.4 Anatomy of a Personal Injury Lawsuit 184Legally Managing at Work: The Manager’s Role in Litigation 1889.5 Responding to an Incident 188Legally Managing at Work: Responding to an Accident 189International Snapshot: Negligence 192What Would You Do? 192What Did You Learn in this Chapter? 19310 Your Responsibilities as a Hospitality Operator to Guests 19510.1 Accommodating Guests 19510.2 Guest Privacy 199Legally Managing at Work: Law Enforcement and Guest Privacy 20010.3 Facility Maintenance 201Legally Managing at Work: Five Steps to Facility Evaluation 20710.4 Responsibilities to Nonguests 21110.5 Removal of Guests 212Legally Managing at Work: Responding to Guest Health Emergencies 214International Snapshot: Should Foreign Governments Adopt Provisions from the USA PATRIOT Act to Combat Terrorist Acts against the Hospitality Industry? 214What Would You Do? 215What Did You Learn in this Chapter? 21511 Your Responsibilities for Guests’ Property 21711.1 Liability for Guests’ Property 21711.2 Bailments 22011.3 Property with Unknown Ownership 223Legally Managing at Work: Disposing of Found Property 225International Snapshot: Limited Liability of Innkeepers in Canada 225What Would You Do? 226What Did You Learn in this Chapter? 22612 Your Responsibilities When Serving Food and Beverages 22712.1 Serving Food 227Legally Managing at Work: Steps to Take When a Guest Complains of Foodborne Illness 22912.2 Truth- In- Menu Laws 23012.3 Serving Alcohol 235International Snapshot: Understanding Barriers to Entry and Regulatory Requirements for Foreign Producers of Alcohol Seeking to Import to the United States 242What Would You Do? 243What Did You Learn in this Chapter? 24313 Legal Characteristics of Travel and Tourism 24513.1 Travel 24513.2 Travel Agents and Tour Operators 24913.3 Transportation and Common Carriers 25513.4 Tourism 26113.5 Online Travel Sales 267Legally Managing at Work: Internet Advertising Checklist 270International Snapshot: Government Support of Tourism 272What Would You Do? 273What Did You Learn in this Chapter? 27314 Safety and Security Issues 27514.1 The Importance of a Protected Environment 27514.2 Safety and Security Programs: Four- Step Safety and Security Management Method 278Legally Managing at Work: Establishing an Effective Guestroom Lock Policy 28514.3 Crimes Against Hospitality Businesses 288Legally Managing at Work: Procedures to Reduce the Incidence of Skipping 289Legally Managing at Work: Guidelines for Handling Credit Cards 290Legally Managing at Work: Personal Check Verification 29014.4 Human Trafficking 29214.5 Crisis Management Programs 293Legally Managing at Work: The Manager’s Responsibilities in a Crisis 296Legally Managing at Work: Guest Relations in a Crisis Situation 298Legally Managing at Work: Guidelines for Dealing with the Media During a Crisis 300International Snapshot: Legal Claims and Recovery for Injury Under Mexican Law 302What Would You Do? 303What Did You Learn in this Chapter? 30315 Managing Insurance 30515.1 Introduction to Insurance 30515.2 Types of Coverage 30715.3 Selecting an Insurance Carrier 31115.4 Selecting the Insurance Policy 31115.5 Policy Analysis 313International Snapshot: Hotels Operating Internationally Need to Think Globally 314What Would You Do? 316What Did You Learn in this Chapter? 316Glossary 317Index 323