FSU HFT 3603 - Ch. 13 – Travel Agents & Airlines

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Crystal Zimmerman#65Ch. 13 – Travel Agents & Airlines: Rights & LiabilitiesOutline- AGENCY LAWo Agent is the legal term used for a legal representative. It is used in a more formal and legal way than the term travel agent.o Agency – a relationship in which one person acts for or represents another based on authority voluntarily given by that other person; involves 2 parties: a principle and an agento Principle – the person who authorizes someone else (an agent) to act on his behalf; controls the method used by the agent to do the authorized tasks; Ex: employero Agent – the person so authorized, the one who represents or acts for the principle consistent with the principal’s directions; Ex: employeeo Agency law requires that the agent disclose to the agent’s client the identity of the principle so that the client can investigate the reputation or credit of the principal if the client is so inclined.o Independent Contractors – people who contract to do work for someone else, but are engaged in an independent business for themselves- TARIFFSo Tariff – a rule or condition of air travel that binds the airline and passengerso Limits of liability for lost luggage on domestic flights are covered by tariffs, which are developed by airlines and approved by the Department of Transportation.o Travelers are bound by tariffs even though they do not know about them and do not expressly agree to them. Tariffs are developed by the airlines and must be approved by the Department of Transportation.- SMALL CLAIMS COURTo Small Claims Court – a forum that encourages people to act as their own advocates without a lawyero The maximum amount of money a plaintiff can seek is relatively small, customarily $3k-$5k- CLASS ACTION SUITSo Class Action Suit – a legal device in which many people who have suffered losses from the same cause sue the defendant jointlyo Financially attractive option for plaintiffs because the cost of the lawsuit is spread among many plaintiffs instead of just one- BAGGAGE CLAIMS: DOMESTIC & INTERNATIONALo Warsaw Convention – international treaty that set limits of liability for lost, stolen, damaged, or misdelivered baggage until 2003 (for international flights, $9.07 p/ lb up to 44 lbs (~$400); $400 for carry on baggage)o Grounds for loss of Warsaw Convention’s limited liability: failing to provide on the baggage claim stub the weight of a passenger’s luggage, and “willful misconduct”o To obtain recovery for damaged baggage requires that the traveler strictly follow the prerequisitesidentified in the tariffs (like time limits), or else the case may be dismissed.o If the airline misleads a passenger about the time limits for filing a complaint, failure to comply with time requirements for written notice to the airlines will not result in dismissal of the case.o Montreal Convention – treaty that (since 2003, for international flights) sets limits of liability for lost, stole, damaged, or misdelivered baggage Changes Include:- A maximum recovery for damage to property in the approximate amount of $1400- Calculations of the amount of damages awarded for property loss based on the law of the state or country where the action is commenced- Relaxation of the requirement that an airline issue a baggage check with prescribedcontents- Elimination of the loss of limited liability if the airline fails to comply with the documentation requirements- Introduction of a requirement that airlines maintain adequate insurance to cover their potential liability- Authorization for a plaintiff to bring a lawsuit at the place of his residenceo Neither the Warsaw Convention nor the Montreal Convention applies to domestic flights.o For domestic flights, the lowest maximum liability an airline can include in its tariffs is $2800.- AIRPLANE SECURITYo After September 11, 2001, Congress and the airline industry responded with increased security measures to enhance precaution at three areas of concern: Keeping terrorists away from airports At airports, detecting hijackers to prevent their access to planes Preventing unauthorized entry into cockpitso Passengers may not carry on liquid/gel products in excess of 3 oz.o Only ticketed passengers allowed beyond x-ray security checkpoints except: parents with childrenwho will be traveling alone and certain attendants of disabled passengers.o A federal regulation prohibits interfering with, assaulting, threatening, or intimidating screening personnel in the performance of their screening duties.o Airlines have a duty to safeguard passenger’s CARRY ON baggage during security checks.o Airport screenings are not considered illegal searches because by people choosing to utilize air transportation, impliedly agrees to the screening process.- TRAVELING WITH ANIMALSo When determining an airline’s liability for mishandling pets, animals are treated the same as suitcases.o Since animals have the same status as luggage, the airline is obligated to sell insurance to cover them.- PERSONAL INJURY ON-BOARD INTERNATIONAL FLIGHTSo The maximum amount recoverable to a person injured on an airline, under the Warsaw Convention, was $75,000.o Under the Montreal Convention, the liability of airlines for death or personal injury to passengers is $140,000 (unless the death/injury was due to the airline’s negligence, the liability would be unlimited)- E-TICKETSo E-tickets – aka electronic tickets; paperless tickets representing reservations that are recorded exclusively in computer fileso Advantages of E-tickets to passengers: Avoidance of having to carry a ticket or worrying about loss/theft Avoidance of fees imposed for lost tickets Elimination of the need to pick up or arrange delivery of a ticket Permits passengers to use other e-services provided by airlines (internet or self service check in)o Advantages of E-tickets to airlines: No expenses associated with paper tickets No addressing problems associated with lost ticketso Problems of E-tickets: Traveler’s reservations not in the computer Difficulty in changing travel plans Difficulty changing flights from one airline to anothero Recently, airlines have agreements allowing travelers to trade E-tickets among the various airlines’ flights. This is called ticket interlining.- RIGHTS OF TRAVELERS WITH DISABILITIESo The Americans with Disabilities Act (ADA) as well as The Air Carrier Access Act (ACAA, 1986) state that no air carrier


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FSU HFT 3603 - Ch. 13 – Travel Agents & Airlines

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