Chapter 13 HFT3603 Final Study Guide chapter 13 14 1 Agent legal term for a legal representative Travel agent refers to an individual who advises travelers on most aspects of taking trips Agency a related term that means a relationship which one person acts for or represents another based on authority voluntarily given by that other person Involves a principal and an agent Principal the person who authorizes someone else an agent to act on his behalf Agent the person so authorized the one who represents or acts for the principal consistent with the principal s directions When an agent acts on behalf of a principal and within the scope of the authority given by the principal the latter is legally bound to liable for the agent s acts and the agent is not When an agent acts outside the bounds of the delegated authority the principal not bound and the agent may be liable for fraud deception for misrepresenting his authority 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 Tariffs cover such items as limitations on an airline s liability for damaged baggage procedures for filing a claim rules for reservations and check in times limits on the airline s liability for schedule changes and flight delays and personal injury liability limitations Small claims court a forum that encourages people to act as their own advocated 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 A tariff provides that when travelers hand their baggage to an airline to have it transported to their destination they are entering into a contract with the airlines Until 2003 international flights were governed by the Warsaw Convention an international treaty that sets limits of liability for lost stolen damaged or misbelieved baggage Failure of the airlines to comply strictly with various provisions of the Convention can result in loss of the limited liability Another factor that will bar an airline form the advantages of the Warsaw Convention s limited liability is willful misconduct Since 2003 a new international treaty the Montreal Convention has controlled many aspects of lawsuits against airlines for damages and injuries caused in the process of international airline travel 2 o Maximum recovery for damage to property in the approximate amount of 1400 o Calculation of the amount of damages awarded for property loss based on the law of the state or country where the action is commenced o Relaxation of the requirement that an airline issue a baggage check with prescribed contents o Elimination of the loss of the limited liability if the airlines fails to comply with the documentation requirements o Intro of a requirement that airlines maintain adequate insurance to cover their potential liability o Authorization for a plaintiff to bring a lawsuit at the place of his residence o Neither the Warsaw Convention nor the Montreal Convention applies to domestic flights Federal law has long required that commercial airlines refuse to transport any prospective passengers who do not submit to a search of their persons and possessions for dangerous weapons prior to boarding an aircraft as part of a nationwide anti hijacking program Pilot has the final say on who can board the plane Traveling with animals o If hurt or killed they are just considered a piece of luggage meaning the airline only have to pay for the price of the luggage If someone is sitting in the emergency exit seat on a plane and appears to be weak airlines can tell them to move to another seat Chapter 14 Employment HFT3603 Final Study Guide chapter 13 14 3 Fair Labor Standards Act FLSA a federal law adopted in 1938 to eliminate unfair methods of compensation and labor conditions injuries to the health and efficiency o Mandates minimum wages one and one half pay for overtime work equal pay for equal work and restrictions on child labor Minimum wage o FLSA requires that with few exceptions employers involved in interstate commerce pay employees at least the minimum wage set by Congress o Excepted from the minimum wage requirement are employers with less than 500K in annual sales o Another exception to the minimum wage requirement applies to employees who routinely receive at least 30 per month in tips on the job o An employer can pay a wage below minimum to a limited class of young employees o Oscillating work week not allowed Overtime Pay o FLSA requires that certain employees who are paid on an hourly basis and who work more than 40 hours in one week be paid at least one and one half times their regular pay for the hours in excess of 40 Split shift o Employees with a split shift works lunch and dinner with break in between is entitled to payment only for the hours worked and no the hours in between Equal pay for equal work o 1963 amendment to the FLSA called the Equal Pay Act requires that men and women who do the same job or jobs that require equal skill Comparable worth the concept that two jobs requiring different skills and responsibilities have equal value to the employer Courts have rejected the concept that comparable worth requires equal pay Restrictions on Child Labor Hours o The minimum work age is 14 o During the school year an employer who is 14 or 15 cannot work more than 18 hours a week not more than 3 hours on a school day and cant begin work earlier then 7am or end later than 9pm Family and Medical Leave Act 4 o Effective in 1993 and entitles eligible employees to take up to 12 weeks of unpaid leave per year for childbirth adoption foster placement or to care for a child spouse or parent who has a serious health condition or for the own employee s health condition o Upon returning they must be reinstated with equivalent position and pay benefits At will employment o Means the employment contract between an employer and an employee is indefinite in duration and can be terminated by either party for any reason or no reason at any time without liability Illegal Job Discrimination o An employer cannot discriminate against workers on the basis of race skin color religion gender pregnancy national origin disability age if at least 40 or union membership all these are protected classes Disparate treatment intentional discrimination based on race color religion gender or national origin Disparate impact