Quiz 3

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Question #1

Liquor Liability, or dram shop, insurance provides coverage for bodily injury or property damage for establishments that sell alcohol, under certain conditions.

A TRUE

B FALSE

Question #2

An actuary is a mathematician or statistician who computes insurance risks and establishes premium rates.

A FALSE

B TRUE

Question #3

Different types of insurance coverage include:

A all the above

B Property-Casualty/Business Interruption

C Liability

D Dram Shop

E Workers’ Compensation

F Health/Dental/Vision

Question #4

Regarding Insurance Management: Because insurance protects against risk at an agreed-upon price, it is critical that you as a hospitality manager know:

A all the above

B The risks you are insuring against

C How much the insurance will cost

D Any exceptions to your coverage that are written into your policy

E The amount of coverage you will receive

Question #5

By pre-planning for certain types of accidents and events you may be able to minimize injury or loss, demonstrate reasonable care, and show a jury that you were able to foresee a potentially dangerous situation and possibly minimize its effect. .

A FALSE

B TRUE

Question #6

Other advantages for pre-planning for unforeseen situations include:

A Improved management image

B Reduced insurance rates

C Improved employee morale as employees see you taking measures to care for them

D all the above

E Increased guest satisfaction

Question #7

Crisis management consists of:

A Responding properly during a crisis

B Pre-planning for a crisis

C all the above

D Assessing your operation’s performance after the crisis to see how your response could be improved for the next time.

Question #8

Regarding safety and security issues, as the manager of your facility, you will be responsible for many activities designed to protect people and property at your establishment. One or more considered crisis issues includes

A Drug/medical issues

B Bomb threats

C Active shooters

D Severe weather storms

E all the above

Question #9

The Warsaw Convention sets limits on the liabilities of airlines that follow established guidelines for the safe operation of international airline flights.

A TRUE

B FALSE

Question #10

“Tour Operator” is the broad term meaning: A company whose primary activity is the planning, packaging, and marketing of travel services, including transportation, meals, accommodations and activities.

A TRUE

B FALSE

Question #11

Common areas of liability for travel agents include:

A Failure to provide promised services

B Misrepresentation

C Failure to honor agreed-upon pricing

D all the above

Question #12

To understand typical travel-oriented industries it is helpful to view travel as consisting of key component(s) including:

A Planning Service

B Transportation

C Food service

D all the above

E Lodging

Question #13

The phrase “Truth-in-Menu Laws” is the collective name given to various laws and regulations that have been implemented to ensure accuracy in the wording on menus.

A TRUE

B FALSE

Question #14

Food borne illness does NOT mean: Sickness or harm caused by the consumption of unsafe food or beverage.

A TRUE

B FALSE

Question #15

It is legal that certain steps should be taken when a guest complains of foodborne illness, such as:

A If provided by the guest, obtain the name of physician and encourage the guest to contact the physician

B ocument contact information of the guest and the date and time the guest patronized your establishment.

C Document your efforts, and notify your attorney, your public relations specialist, and/or your company risk manager

D all the above

Question #16

The Uniform Commercial Code (UCC) mandates that:

A Has nothing to do with food service

B The hospitality manager involved in the service food has a legal obligation to sell only food that is wholesome and to deliver it in a manner that is safe.

C Is a law regarding clothing

D None of the above

Question #17

Currently, each state developed its own view of the extent of innkeeper liability for the possessions of their guests. An example (Ohio state) of the type of law that state legislatures have passed for the benefit of innkeepers include:

A Posting Notice of innkeeper liability limitations, placed in prominent places where guest can see it and thereby considered to be informed.

B The hotel must provide a safe where guests can keep their valuable during their stay

C all the above

D The hotel must provide suitable locks on doors and windows.

E The hotel may place a limit on the amount of personal property or items of high value.

Question #18

“Bailment” is a term that means the guest should find his/her property in the same condition when returned as it was when it was left in the possession of the hotel – usually referring to coat checks, valet parking safety deposit boxes, laundry, luggage storage.

A TRUE

B FALSE

Question #19

Because it is impossible to know for certain exactly what may have been contained in a lost piece of luggage, most states’ hotels may place a dollar limit on the replacement value of such items.

A TRUE

B FALSE

Question #20

Regarding innkeeper/guest property liability, the general rule of common law is that the innkeeper will be liable for damage to, or loss of, a guest’s property, unless one or more of the following occurs to cause the damage or loss:

A Any of the above

B An act of nature

C Civil unrest

D The guest’s own negligence

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