Business Law

Chapter 20Chapter 20

Carriers and HotelkeepersCarriers and Hotelkeepers

Carriers and Hotel Keepers

Kinds of CarriersKinds of Carriers Common CarrierCommon Carrier

Transports the general public for pay.Transports the general public for pay.

• Subject to government regulationSubject to government regulation

Kinds of Carriers

Contract CarrierContract Carrier Carrier limits who it will do business Carrier limits who it will do business

withwith Must take “reasonable care”Must take “reasonable care” They are not required to insure goods in They are not required to insure goods in

their caretheir care Covered by rules of Bailment covered in Covered by rules of Bailment covered in

chapter 19chapter 19

Kinds of Carriers

A Private CarrierA Private Carrier Carries only their own goodsCarries only their own goods Examples:Examples:

Store delivery trucksStore delivery trucksPrivate planesPrivate planes

Regulation

Interstate Commerce is Regulated by the Interstate Commerce is Regulated by the Federal GovernmentFederal Government Regulation started in 1887.Regulation started in 1887. Deregulation was started in 1978 to Deregulation was started in 1978 to

simplify regulationsimplify regulation

Interstate Commerce Commission ICC regulatesICC regulates

RatesRates DisruptionsDisruptions Safety IssuesSafety Issues

Common Carriers of Goods

Must serve everyone who asks to be served.Must serve everyone who asks to be served. They are responsible for goods trusted to They are responsible for goods trusted to

their care, even if they did nothing wrong.their care, even if they did nothing wrong.

Common Carriers

Exceptions to their responsibility:Exceptions to their responsibility: Acts of God.Acts of God. Act of a “Public Enemy” (Invading Act of a “Public Enemy” (Invading

Army)Army) Act of Public AuthorityAct of Public Authority

Example: Goods take for health Example: Goods take for health reasonsreasons

Common Carriers

More exceptions to responsibilityMore exceptions to responsibility Fault or carelessness of the shipperFault or carelessness of the shipper

MislabelingMislabelingPoor PackingPoor PackingNature of the goodsNature of the goods

• Fruit rottingFruit rotting

• Liquids evaporatingLiquids evaporating

Common Carriers of Passengers

Duties to Passengers include offering services to Duties to Passengers include offering services to everyone everyone exceptexcept:: When all available space is taken or reservedWhen all available space is taken or reserved When passengers areWhen passengers are

DisorderlyDisorderlyIntoxicatedIntoxicatedInsaneInsaneInfected with a contagious diseaseInfected with a contagious disease

Common Carriers of Passengers

May also refuse service to anyone they May also refuse service to anyone they consider to be a danger or refuses to consider to be a danger or refuses to consent to a search of their person or consent to a search of their person or baggage.baggage.

There are other examples of when they may There are other examples of when they may refuse service in the book. They might be refuse service in the book. They might be on the test.on the test.

Common Carriers

Must provide refreshments, offer to Must provide refreshments, offer to sell refreshments or provide rest stops sell refreshments or provide rest stops where passengers can purchase where passengers can purchase refreshments.refreshments.

Common Carriers

Removal of PassengersRemoval of Passengers A passenger can be removed for any reason A passenger can be removed for any reason

they would not have been allowed on in the they would not have been allowed on in the first place.first place.

A passenger can also be removed for failure to A passenger can also be removed for failure to pay the fare.pay the fare.

A passenger cannot be left in a place where A passenger cannot be left in a place where they are in danger or could suffer great personal they are in danger or could suffer great personal loss.loss.

Common Carriers

Passenger SafetyPassenger Safety Generally carriers are responsible for the Generally carriers are responsible for the

safety of passengers including acts of it’s safety of passengers including acts of it’s employees.employees.

Exceptions include:Exceptions include:Passengers’ own negligencePassengers’ own negligencePassenger violates carriers reasonable Passenger violates carriers reasonable

rulesrules

Common Carriers

Duty ends at the final destinationDuty ends at the final destination Exception are cruise shipsException are cruise ships

Carrier must warn of dangers at each port Carrier must warn of dangers at each port of call.of call.

Liability ends at the end of the cruise.Liability ends at the end of the cruise.

Common Carriers

Airlines PassengersAirlines Passengers If you’re bumped due to overbookingIf you’re bumped due to overbooking

You are due “Overbooking You are due “Overbooking Compensation”Compensation”

• You get alternative transportationYou get alternative transportation

• Plus your money backPlus your money back

• Hotel and meals if neededHotel and meals if needed

Airline Baggage

Misdirected bags must be returned at Misdirected bags must be returned at airline’s expenseairline’s expense

Compensation for some loss of use or Compensation for some loss of use or replacement itemsreplacement items

Liability is limited to $ 1,250 per passenger Liability is limited to $ 1,250 per passenger according to the book.according to the book.

Hotelkeepers

Regularly offers room to guests (Called Regularly offers room to guests (Called TransientsTransients) for a price) for a price

Relationship starts when a guest surrenders Relationship starts when a guest surrenders their luggage to a porter or enters hotel their luggage to a porter or enters hotel transportation and ends when the bill is transportation and ends when the bill is paid.paid.

HotelKeepers

A A lodgerlodger is a guest who stays for a definite is a guest who stays for a definite period of time.period of time.

HotelKeepers Responsibilities

Must take all guests unless a danger to the Must take all guests unless a danger to the health or welfare of other guests.health or welfare of other guests.

They do not need to accept people who They do not need to accept people who cannot pay for their stay.cannot pay for their stay.

Guest’s Privacy

Hotelkeeper must guaranty the guest’s right Hotelkeeper must guaranty the guest’s right to privacy.to privacy.

Guests can sue for invasion of privacy.Guests can sue for invasion of privacy.

Security of Guest’s Property

To a certain level hotelkeepers are insurers To a certain level hotelkeepers are insurers of their guests property.of their guests property.

There are limits on liability set by state There are limits on liability set by state statute.statute.

Exceptions are made for fires where the Exceptions are made for fires where the hotelkeeper is not at fault.hotelkeeper is not at fault.

Hotelkeepers must provide a safe for Hotelkeepers must provide a safe for valuables. valuables.

Guest’s Comfort and Safety

Hotelkeepers must meet certain standards Hotelkeepers must meet certain standards for cleanliness and safety.for cleanliness and safety.

They can be held libel for negligence if they They can be held libel for negligence if they do not.do not.

Rooms must be reasonably quiet and guests Rooms must be reasonably quiet and guests must be protected from “criminals, must be protected from “criminals, hoodlums and persons of immoral hoodlums and persons of immoral character”character”

Hotel’s Right to Payment

Hotels can have a lien on guest’s personal Hotels can have a lien on guest’s personal property until the bill is paid.property until the bill is paid.

Roomers (Longer term guests) have Roomers (Longer term guests) have additional rights and a lien usually cannot additional rights and a lien usually cannot be placed on their property.be placed on their property.

Laws do vary by state.Laws do vary by state.

Guest’s Obligation

You may not have an unregistered guest You may not have an unregistered guest overnight.overnight.

You must register at the desk before You must register at the desk before occupying your room.occupying your room.

You must check out when you leave.You must check out when you leave.