3. BRAINSTORMING
• A restaurant guest is unhappy with the quality of service
provided during his meal. He complains to the manager and
angrily demands his money back, but his meal has been
eaten.
• Is the guest legally entitled to a refund?
• A hotel guest maintains that a $ 50 bill she had left on her
bedside table was gone when she returned to her room after
going out for lunch.
• Is the hotel required to replace the funds?
• A resort employee is arrested by the local police for driving
under the influence of alcohol. He is employed by the hotel as
a car driver, but was not on duty at the time of arrest.
4. BRAINSTORMING
• A hotel food and beverage director is presented with a bottle
of rare and expensive wine as a Christmas Gift from her linen
vendor.
• Can she legally accept the gift without threatening her
employment status?
• A franchise restaurant owner receives a letter from her
franchisor stating that the “casual Friday” dress code policy
recently adopted by the owner is in violation of the franchise
agreement.
• Must the owner change her policy?
5. INTRODUCTION TO LEGAL
ENVIRONMENT (1)
Legal aspects of guest host relation
Legal aspects of employer and employees in this sector.
The legal environment provides legitimacy, security and peaceful industrial
situation to the business and industry.
So, law is not only about constraining the authorities and powers but also
about facilitating and empowering the dedicated ones in the trade and
industry.
6. INTRODUCTION TO LEGAL
ENVIRONMENT (2)
• Every business is concerned with the laws and regulations that are applicable to
the business.
• Business organization need to comply with sets of rule and regulations of the
country.
• To have a flourished and prosperous business, there must be a suitable,
conducive and sound legal environment.
• Legal environment of hospitality and tourism is legal framework of that
business with the effect of law on hospitality and tourism sector.
• It is related to the study of legal atmosphere of the hospitality.
• The legal regulations are not threat in themselves but non-compliance may
result into certain kinds of monetary and non-monetary punishments
• The relation and effect of law and hospitality industry.
7. TOMORROW: FACTORS THAT INFLUENCE LEGAL
ENVIRONMENT OF HOSPITALITY SECTOR
Project: Collect the factors that influence legal environment of hospitality
sector
8. FACTORS THAT INFLUENCE
LEGAL ENVIRONMENT
Laws
Working condition
Working atmosphere
Peace and security condition
National culture (atithi devo bhaba)
Political culture and situation (stability or instability )
National and international relation
Enemy nations
Human resources, etc.
10. PRIVATE FIRM/ SOLE
TRADE BUSINESS
Meaning
Registration
Characteristics
Duty
Cancelation / dissolve
11. INTRODUCTION OF THE
HOSPITALITY LAW
Hospitality=well coming / receiving /
Law = rules and regulations
Rules /laws relating to the area/ sector of hospitality
Laws which regulates the hospitality business sector
Human resources, capital ,labor relation conducting according to the law in
hospitality
12. According to section 2(a) private firm registration Act
2014: a private firm is a business established by an
individual in his/her own name or nick name for the
purpose of commerce.
Private firm is a sole trade business. It is owned by a
single person/ individual.
13. CHARACTERISTICS OF SOLE
TRADE
It is individual owned business
Easy to establish and easy to dissolve
Small type of business
It has unlimited liability
14. REGISTRATION OF SOLE
TRADE
Sole trade business must be registered at department of commerce.
Registration fee/ royalties needed to pay as per capital investment.
One has to fill up a form and submit to register
In that form information like name of the owner, address of the owner, name
of mother/father of the owner, name and address of the firm, capital
investment to the firm, description of the business should be written.
15. DUTIES OF SOLE TRADER
Registration in concerned government offices
Obtain required licenses
Pay tax
Renewal as per law
Follow business law and ethics
Submit administrative, business and financial report to authority
Follow/obey instructions given by concerned government authorities.
16. CANCELATION OF SOLE
TRADING CONCERN
Voluntary cancelation : by the application of the owner
Forceful cancelation : by the government authority if the firm fails to fulfil
legal duties. Cancelation as punishment.
20. COMPANY
Company is meant an association of many persons who contribute money or
money’s worth to a common stock and employ it for a common purpose.
Company is an association for profit with capital divisible into transferable
shares with limited liability having a corporate body and a common seal.
21. PRINCIPLES OF THE
HOSPITALITY LAW
Ignorance of law is no excuse
Hospitality is the way of service, be hospitable, be pleasant
Principle of exchange of benefit. Both the guest and host must be benefited
Principle of customer care. Customer is always right, customer is first
Principle of truth in menu. Treat, serve the guest as per your menu.
Principle of prompt solution. Listen to your guest , honest is must
A satisfied guest is thousand times better than any other advertisement
A host can’t refuse a guest, either s/he is a weary, noble person or a beggar.
22. GENERAL INTRODUCTION TO
PROFESSIONAL
ORGANIZATIONS IN
HOSPITALITY SECTOR
Hotel association of Nepal : general introduction, establishment, right, duty and function
International hotel and restaurant association : general introduction, establishment, right
duty and functions
These are advocacy groups. Umbrella organizations
Established for the interest protection of their members
Helps the governments to give feedbacks, inputs suggestions.
Works to bridge between the members, organizations and governments. Helps to
introduce code of conducts and to systematize the hospitality business.
