Exam 3 Ch.7-11Ch. 7 Guests and Other PatronsWho qualifies as a guest?• Visit must be for the primary purpose for which an inn operates• People are not guests unless they require over night accommodationsIntent of parties pg. 269• Innkeeper-guest relationship is contractual • Registration at the hotel is not essential for an innkeeper- guest relationship to existTermination of guest- innkeeper relationship pg. 275• Contracted time for the room has elapsed • Bill not paid when due• Proper notice is given to vacate the hotel• Reasonable time has passed since checkout • Bill has been settled and paid Ch. 8 Protecting Patrons’ PropertyKey Points: this chapter discusses the liability of a hotel/ restaurant when property disappears• Hotel Theft• Limited Liability Statutes• BailmentHotel Theft pg. 282• Guests’ insurance: if guest does have insurance and recovers the loss from the insurance company, the hotel is not relieved from liability. The insurance company can sue the hotel from the money they paid to the guest.• Absolute liability has been modified: Used to apply to guests’ property that was infra hospitium or “within the in”• Exceptions to the absolute liability rule pg. 283o Outdated rule of infra hosptium was outdated by 3 exceptions1. Loss was attributed to what the law call an act of God, which includes earthquakes, lightning, snowstorms, tornadoes and floods2. Loss caused by a public enemy, which includes wartime and terrorist activities 3. Negligence by a guest, such as leaving luggage unattended in lobby• Prima Facie Liability Rule: don’t need to know, if seen on test it is the wrong answerLimiting liability statutes pg. 284• Most important to know for the test • Statutes mandated for hotels to only face liability of a few hundred dollars, even if guests’ property valued at many thousands of dollars is stolen. • Statutes adopted by states to protect hotels1. The hotel must provide a safe for use by guests to protect their property2. Hotel must post notices announcing to guests the availability of the safes3. Hotel must post notices announcing that liability for guests’ property is limiteda. EX: if limited liability is $500, your only getting up to $500 in settlement, even if property was valued higher.4. Max recovery allowed for stolen/ lost property is prescribed by statute and usually substantially less than missing property is valued• As discussed in class on pg. 289o Why is the example in paragraph 3 wrong? This is should be comparative negligence not contributory negligence as the book states. If guests contribute at all, they don’t receive. • What property belongs in the safe pg. 291o Not all property brought to a hotel by a guest is appropriate for a safe- if diamonds are stolen, it must be from the safe or hotel can argue they shouldn’t have been left outo Required to be put in safe: Money, jewels, ornaments, banknotes, bonds, negotiable securities, precious stones, and other articles of similar value A watch is neither a jewel nor an ornament but a time pieceo Property not required to be put in a safe such as watches, clothes, sporting equipment, camera, does not have unlimited liability. Typical limiting statutes restricts a hotel’s liability of such items unless caused by negligence of hotel, in that case hotel is liable for full amount of guest’s loss. It is different only in FL. In FL, statutes relieve hotel from any liability unless hotel was negligent but hotel’s liability is limited to $500• Estoppel: loss of limited liability pg. 295o Watch your comments to guests because you could lose benefits of a limiting liability statute: “If it gets stolen we cover up to $500”o Defense-your stopped from over claimingo Doctrine of equitable estoppel: a legal principle that precludes a person from claiming a right or benefit because that person made a false representation to another person who relied on the untruthful statement to his detrimentBailment pg. 304• Bailment: a transfer of possession of personal property from one person to another, with the understanding that the property will be returned• Bailor: the person transferring possession of the property• Bailee: person receiving possession o Bailor gives property to bailee• Essential elements of bailment1. Personal property : has to be tangible and moveable (cars, clothing, equipment) does not apply to real property (land, bildings) or liquor license2. Delivery of possession: possession of the personal property must be transferred to the bailee3. Acceptance of possession by the bailee : bailee must knowingly accept possession of the bailed property4. Bailment agreement : part of every bailment is an agreement, expressed or implied, by the bailee to return the bailed good to the bailora. Ex: go to restaurant and get ticket from valet. Ticket is a bailment because they must give it back to you the same way but this does not include a bailment on property inside the car, like ringsb. Ex: laundry ticket from hotel laundry service, bailee is the hotel• Different levels of care pg. 306o Know 3 types of bailment and level of care you have to give for each one1. For the sole benefit of the bailor (slight degree of care)a. Ex: during a hurricane, giving your computers to another hotel outside the line of the storm, the second hotel does not charge a fee to protect them2. For the sole benefit of the bailee (great care)a. Bailor lends property to the bailee and receives nothing in returnb. Ex: restaurant lends serving dishes at no cost to a catering service who is low on plates for a big event 3. Mutual benefit is most common (ordinary care)a. Bailment for hire, both parties receive some benefit form the bailmentb. Ex: rental car or tent for a wedding• Proof of negligence in bailment cases pg.309o Bailor need only prove delivery of the bailed property to the bailee, acceptance by the bailee and either a failure by the bailee to return the bailed property, or return of the property in a damaged condition• Items inside bailed property pg. 313 o Question: is bailee liable when valuable property is located inside the bailed property and its presence is unknown to the bailee?o Answer: no, bailee not liable when presence of valued property is unknown. The bailee must knowing except possession of the propertyo Case pg 314o Should always have security procedures and protection of key boards• Significance of a car keyo