HOSPITALITY LAW 1

8/7/2019 HOSPITALITY LAW 1

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HOSPITALITY LAW

The Legal System


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Why study law? Most of what we do in life is regulated by the

law.

The hospitality industry is a service industry soyou are in constant touch with the general

public.

You will also have legal relationships with

suppliers, employees, travel agents etc.

Therefore it is essential to know the laws.


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Example

The owner of the Sea View Hotel

overbooks the rooms in the expectation

that some guests may cancel. He alsoadvertises that a kids club is available.

The Smith family book a sea view room.

On arrival they are told the room they have

reserved is double booked. They are

given a ground floor room overlooking the

car park. Also due to staff shortages

there is no kids club.


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Example

1. Is the hotel owner criminally liable for

overbooking the hotel?

2. Is the owner criminally liable for the

representations which he made in the

brochure?

3. Which form or forms of civil action mightthe Smith family bring against the hotel?

4. Can the Smith family recover damages

for their disappointment?


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What is Law? A set of rules to govern the conduct of

people in a civilised society. Without

laws a civilised society would degenerate

into disorder.

Laws are for the protection of society

as a whole.


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Criminal LawAntisocial behaviour regarded as an

offence against society as a whole.

Enforced by police or other enforcement

agencies.


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Penalties imposed for criminal

offences

Fines

Community Service

Probation

Suspended Sentence

Imprisonment


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Civil Law Governs relationships between individual

members of society.

Does not involve the police or other

enforcement agencies. The individuals

involved must sort out their differences.


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Penalties imposed in a civil court

If a person loses a case in a civil court

they may have to pay compensation to

the injured party plus theirlegal costs.

They normally have to return the parties to

the position they were in before they

suffered loss.


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Crimes v Civil wrongs Crimes are punished, Civil wrongs are

remedied.

Civil wrongs can be insured against,

Crimes cannot.


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How Laws are Made The common law made by judicial

decisions.

Legislation Made by or under the

authority of Parliament.

European Law resulting from

membership of the European Union.


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Common Law First developed after the Norman

Conquests.

The common law was the body of lawdeveloped over many years fromjudicial decisions, and was commonthroughout the country. A decision in acase sets a precedent which is followed insubsequent cases.


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Legislation Legislation is a written set of rules

decided on by a law-making body which

lays down rules to govern a range ofsituations.


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EC Law

Treaty of Rome (1957)

Most law affecting businesses which is of

European origin arises from the Treaty of Romeand such law is referred to as EC Law.

The scope and aim of the Treaty was amendedin 1986 by the Single European Act and in

1993 by the Maastricht Treaty. The Treaty of Rome became known as the EC

Treaty


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Treaties Treaties are international agreements

between countries but they are not law. The

agreement reached in a treaty needs to bemade law.

EC Laws have supremacy over UK Laws and

as a consequence, the UK and all member

states of the EU have lost their sovereigntyin those areas covered by the EC Treaty.


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Defrenne V Sabena (1975)

Ms Defrenne was an air hostess employed by theBelgian Airline, Sabena.

Male air stewards employed by Sabena were paid morethan air hostesses despite their jobs being identical.

Ms Defrenne took court action against the airline basingher claim on Article 119 of the EC Treaty. The questionwhich had to be decided was whether the somewhatgeneral statement in Article 119, which appeared to be aduty directed to member states, gave any rights toemployees of private employers.

The European Court of Justice decided that Article 119had direct effect and, therefore, conferred rights

enforceable by Ms Defrenne.


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Supremacy ofEC Laws Factortame Ltd v Secretary of State for Transport (1991)

The Merchant Shipping Actbn1988, a UK Act of Parliament,imposed conditions which had to be met if a fishing vessel wasto be registered as British. The conditions included one that ithad to be British owned. The applicant company was owned

and controlled by Spanish nationals. The company owned andoperated fishing vessels which, prior to the 1988 Act, wereBritish registered and so could fish against the British FishingQuota. The company could not meet the new conditions in the1988 Act.

The company alleged that the 1988 Act was contrary to EC lawand that question was referred to the European Court of justicefor a decision.

The European Court of Justice decided that the UKs 1988 Actwas in breach of Article 52 of the EC treaty and was, therefore

ineffective.


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Secondary Legislation EC Treaty Article 189

In order to carry out their task, the

Council and Commission shall, inaccordance with the provisions of thistreaty, make regulations, issuedirectives, take decisions, makerecommendations or deliver opinions.


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Three Principle

Institutions of the EUThe Commission

The Council

The European Parliament


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Making EC Secondary Legislation

There are three different procedures by

which EC secondary legislation is made.

The consultation procedure, co-operation

procedure and the co-decision procedure.

The final stage in all procedures is the

adoption of the legislation by the Council.


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EC Secondary Legislation EC secondary legislation consists of regulations,

directives, decisions, recommendations and opinions.

EC Treaty Article 189

.a Regulation shall have general application. It shall bebinding in its entirety and directly applicable in all memberstates.

A Directive shall be binding, as to the result to be achieved,upon each member state to which it is addressed but shall

leave the national authorities the choice of form andmethods.

A decision shall be binding in its entirety upon those towhom it is addressed.

Recommendations and opinions shall have no binding

force.


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Regulations Regulations are of general application

and binding in all member states.

Once made by the EU institutions, they

form part of the law of each member state

without the need for any further action.

They have immediate direct effect.


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Directives Directives are directions given to member

states to make national laws by a certain date

to achieve certain results.

Directives cannot have direct effect because

they do not become law in each state until the

national law is made.

However, when directives have passed their

implement by date, they can have a direct

effect between the state and an individual.


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Francovich v Italian

Republic(1992) Directive 80/987 The Italian government had failed to implement Directive

80/987 to set up a compensation scheme for employees whoseemployers become insolvent.

Mr Francovich was owed money by his insolvent employers.He sued the Italian government for the money due to him.

The European Court of Justice decided that if a directive givesrights to individuals and has not been implemented then anindividual who suffers loss as a direct result of the failure toimplement the directive can sue the government to recover thatloss.

Accordingly despite the fact that the compensation scheme hadnot been established Mr Francovich was able to getcompensation from his government because of their failure toset up that scheme.


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Recommendations Recommendations have no binding

effect, but can be taken into account when

the court comes to make some sense ofnational legislation passed to give effect to

the recommendation.


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Decisions Decisions are a means of introducing

policies or initiating actions.

A decision is binding upon those to whom

it is addressed.

HOSPITALITY LAW 1

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