Hospitality Law Final 12 05 2013 Chapter 13 Travel Agents and Airlines Rights and Liabilities Key Terms Agency a related term that means a relationship in which one person acts for or represents another based on authority voluntarily given by that other person Agent the person so authorized the one who represents or acts for the principal consistent with the principal s directions Independent contractors people who contract to do work for someone else but are engaged in an independent business for themselves Tariff a rule or condition of air travel that binds the airline and passengers Small claims court a forum that encourages people to act as their own advocates without a lawyer Class action suit a legal device in which many people who have suffered losses from the same cause sue the defendant jointly Warsaw Convention an international treaty that sets limits of liability for lost stolen damaged or mis delivered baggage Montreal Convention treaty that has controlled many aspects of lawsuits against airlines for damages and injuries caused in the process of international airline travel E Tickets electronic tickets that are paperless representing tickets reservations that are recorded exclusively in computer files Disclaimer term in a contract that attempts to avoid all liability on the part of one party to the contract Errors and Omissions Insurance purchased by a travel agent or tour operator to cover its loss when mistakes are made Credit Card Fraud use of a credit card that is stolen or otherwise authorized by the true cardholder Negligent Entrustment means providing a product for use by another person knowing that person is likely to use the product in a dangerous manner Principal a person who authorizes an agent to act on their behalf and controls or directs the method used by the agent in performing authorized tasks Travel Insurance may be purchased to protect against financial losses associated with trip cancellations injuries and other mishaps that can occur on the trip The Makeup of the Travel Industry Suppliers of travel services such as hotels resorts airlines and Travel wholesalers that combine the services offered by suppliers other types of transportation into package tours Travel agents who sell both package tours and services of individual suppliers The travelers Enhanced Precautions after September 11 2001 Keeping terrorists away from airports At airports detecting hijackers to prevent their access to planes Preventing unauthorized entry into cockpits Travel Insurance Risks covered include losses resulting from Trip cancellations or interruptions due to war or terrorism supplier default or sickness injury death of the insured an immediate family member or a traveling companion Trip delays due to natural disasters quarantine transportation cancellations injury or stolen or lost passport visa or money Medical expenses for an injury or illness incurred on a trip Loss or damage to baggage Preventative Law Tips for Managers If employed by an airline regularly review your company s system of baggage control to lower the number of suitcases that are misrouted If employed by an airline do not mislead passengers concerning the whereabouts of lost luggage If employed by an airline be sure your company s rules and facilities for transporting pets protect the well being of the animal If a flight is cancelled the airline should offer assistance to passengers in making alternate arrangements If employed by an airline as a travel agent accord patrons with disabilities the rights provided under the Americans with Disabilities Act and the Air Carrier Access Act In the event of overbooking the airline should offer assistance to passengers in making alternate arrangements to reach their destinations If engaged as a travel agent double check the times of your clients flights and give accurate information If engaged as a travel agent do not misrepresent a client s status on a flight If engaged as a travel agent investigate thoroughly and travel wholesaler or travel serves you recommend to a client If employed in the car rental business regularly review your procedures to ensure the number of unfilled reservations is kept to a minimum If employed in the car rental business do not rent a car to someone who is obviously incompetent to drive If employed in the car rental business inspect your fleet of cars regularly for mechanical problems Points that Dr Ohlin Discussed in Class Makeup of the travel industry Agency law if someone is an agent must represent company Tariff a rule or condition of air travel that binds the airline and passengers o Effective even if passenger didn t know o Covers such items as limitations on an airline s liability for damaged baggage procedures for filing a claim rules for reservations and check in times limites on the airline s liabilities for schedule changes and flight delays and person injury liability limitations Traveling with Animals o For determining an airline s liability for mishandling pets animals are treated the same as suitcases Rights of Travelers with Disabilities o Air Carrier Access Act ACAA became effective in 1986 and was adopted to prevent what congress called the humiliating and degrading practices of airlines o States that no air carrier may discriminate against any otherwise qualified handicapped individual by reason of such handicap in the provision of air transportation o People with disabilities now have a legal right to use the airlines if they can meet minimum requirements concerning mobility that are designed to ensure personal and public safety Book Summary of Chapter 13 Airline passengers have certain rights when they travel including the right to compensation albeit limited when an airline loses luggage the right to rerouting assistance from an airline when flights are canceled and the right of travelers with disabilities to access planes for transportation Travel agents must exercise reasonable care in making a client s travel arrangements and must not intentionally mislead A travel agent may be liable for giving false or incomplete information and for failing to investigate third party suppliers for financial viability and for suitability of facilities A travel agent will not generally be liable for the negligence of third party suppliers such as hotels tour guides and restaurants A tour operator is generally not liable for the negligence of a third party provider over whom the operator has no supervisory control A tour