Module Title: INTRODUCTION TO LAW AND LAW OF
HOSPITALITY
Course Title: LEGAL ASPECTS IN TOURISM AND
HOSPITALITY
Course Number: THC 8
Course Description: Philippine tourism industry has been a concern by may
Filipinos. It is a key source of foreign exchange heavily
on the country’s balance of payments and the
purchasing power of peso. It is a main source of
employment to millions of Filipinos working in various
hotels and resorts, restaurants and bars, travel agencies,
tour companies, entertainment outlets, parks, museums,
galleries, theaters, casinos, et al and around the country
and abroad (Cabulay & Carpio, 2011) just like any
dynamic industry, the forces of the market create
various business and personal experiences that cause
challenging situations to arise. This course will provide a
serious look at the different laws affecting the Philippine
tourism industry.
Total Learning Time: 3 hours/week
Pre-requisites: NONE
MODULE 1
INTRODUCTION TO LAW
Definition of Law:
According to Felipe Sanchez Roman, law is defined as a rule of conduct, just
and obligatory promulgated by legitimate authority and of common observance and
benefits.
In its general and abstract sense (derecho), it is the science of moral was
founded on the rational nature of a man that governs his free activity for the realization
of the individual and social ends of life under an aspect of mutual conditional
dependence.
Characteristics of Law:
1. It is a rule of conduct. If there is no law in society, there will be chaos or
disorder. Because there is law, order is established in such place. One may say
then that people conduct themselves accordingly.
2. It is just and obligatory. Laws must be applied to people similarly situated.
The penalty imposed by law must be commensurate to the wrongful act
committed by a person. The law is obligatory because of the penalty or legal
consequence it provides.
3. It is promulgated by legitimate authority. It is necessary that the person who
creates the law must have the authority to do so under the constitution
otherwise that law shall not be valid. Three branches of government in the
Philippines:
a. Executive Branch (President and executive agencies of the gov’t.)
b. Legislative Branch (Senate and House of Representatives)
c. Judicial Branch (Supreme Court and other lower courts)
4. It is of common observance and benefits. Laws are promulgated for the
welfare of the people. This is based on the Latin maxim “Salus Populi est
Suprema Lex” (The welfare of the people is the Supreme Law). No law
therefore shall be passed to put the people at risk.
Kinds of Law:
For our purposes, the different kinds of law are classified as follows:
As to purpose:
1. Substantive Law - a law which creates and defines and regulates rights, or
which regulates the rights and duties which give rise to a cause of action.
2. Procedural Law – that which provides or regulates the steps by which one who
commits a crime to be punished.
As to scope:
1. General or Public Law - a law which applies to all of the people of the state or
to all of a particular class of persons in the state, with equal force and obligation.
Examples: Criminal law, international law, political law.
a. Criminal Law - a law dealing with crimes and their punishment as well
as the procedure for that purpose.
b. International Law - body of rules or principles of action governing the
relations between states.
c. Political Law - law regulating the relations sustained by the inhabitants
of a territory to the sovereign.
2. Special or Private Law - a law which relates to particular persons or things of a
class.
a. Civil Law - the mass of precepts which determines and regulates those
relations of assistance, authority, and obedience existing among members
of a family and those which exist among members of the society for the
protection of private interests.
b. Maritime Law - the law dealing with commerce by sea, involving
regulations of ships and harbors and the status of seamen.
c. Mercantile Law - the law of commercial transactions derived from the
law of merchant which includes commercial paper, insurance, and other
types of agency.
Necessity and Functions of Law
What would life be without law?
Society comes into existence because its members could not live without it. The need of
internal order is as constant as the need for external defense. No society can be stable in
which either of these requirements fails to be provided for.
What does the law do?
Law secures justice, resolves social conflict, orders society, protects interests, controls
social relations.
What is our duty as member of the society?
No society can last and continue without means of social control, without rules of social
order binding on its members.
LAW OF HOSPITALITY
OVERVIEW:
Hospitality is the activity or business of providing services to guests in hotels,
restaurants, bars, etc.
Hospitality law is a legal and social practice related to the treatment of guests or
those who patronize a place of business. Related to the concept of legal liability,
hospitality laws are intended to protect both hosts and guests against injury, whether
accidental or intentional. Hospitality laws are related to food service, travel, and lodging
industries. It governs the various nuances of the hotel, restaurant, bar, spa, country club,
meeting and convention industries.
WHY IS HOSPITALITY LAW IMPORTANT?
They were created to ensure that restaurants, hotels, motels, and other public
accommodations are providing safety measures within their establishments to ensure the
well-being of their patrons. People are expecting to eat good food when they visit a
restaurant. When lodging at a hotel or motel, people are expecting a good night’s stay
free from any type of harm. They should be protected from any type of criminal activity,
such as robbery or assault. What protect us from harm are the laws in place to lessen the
chances of these things occurring.
HOTEL AND CATERING LAW
The following are laws regulating hotel and catering issues:
1. Theft or crime committed within hotel premises;
2. Guests refusing to settle their bills;
3. Ensuring the safety of hotel guests;
4. Breach of contracts for reservation;
5. Health and safety of employees in catering operations;
6. Children and young people working in catering;
7. Dismissal of employees;
8. Safety of guest’s property;
9. Catering/restaurant permits;
10. Price lists and stipulations;
11. Safety and working conditions for employees
HOTEL’S DUTY TO A GUEST PROPERTY
Hotel operators have a duty to their guests and their guests’ property. This duty of
care to the guests does not ensure the guests’ safety, but requires the operator to “act
prudently and use reasonable care”.
The following provisions under the Civil Code of the Philippines pertain to the
duties and responsibilities of hotel keepers with regard to the properties of their guests:
Art. 1998. The deposit of effects made by the travelers in hotels or
inns shall also be regarded as necessary. The keepers of hotels or inns
shall be responsible for them as depositaries, provided that notice was
given to them, or to their employees, of the effects brought by the guests
and that, on the part of the latter, they take the precautions which said
hotel-keepers or their substitutes advised relative to the care and
vigilance of their effects. (1783)
Art. 1999. The hotel-keeper is liable for the vehicles, animals and
articles which have been introduced or placed in the annexes of the
hotel. (n)
EXTENT OF LIABILITY OF KEEPERS OF HOTELS AND INNS
1. The liability isn’t limited to effects lost or damaged in the hotel rooms which
come under the term “baggage” or articles such as clothing as are ordinarily
used by travelers but include those lost or damaged in hotel annexes such as
vehicles in the hotel’s garage;
2. The responsibility extends to all those who offer lodging for a compensation,
whatever may be their character
Art. 2000. The responsibility referred to in the two preceding
articles shall include the loss of, or injury to the personal property of
the guests caused by the servants or employees of the keepers of
hotels or inns as well as strangers; but not that which may
proceed from any force majeure. The fact that travelers are
constrained to rely on the vigilance of the keeper of the hotels or inns
shall be considered in determining the degree of care required of him.
(1784a)
Art. 2001. The act of a thief or robber, who has entered the hotel is
not deemed force majeure, unless it is done with the use of arms or
through an irresistible force. (n)
Art. 2002. The hotel-keeper is not liable for compensation if the loss is
due to the acts of the guest, his family, servants or visitors, or if the
loss arises from the character of the things brought into the hotel.
(n)
WHEN HOTEL-KEEPER LIABLE
1. The loss or injury is caused by his servants or employees as well as by strangers
provided that notice has been given and proper precautions taken;
2. The loss is caused by the act of the thief or robber done without the use of arms
and irresistible force for in this case, the hotel-keeper is apparently negligent.
WHEN HOTEL-KEEPER IS NOT LIABLE
1. The loss or injury is caused by force majeure, theft or robbery by a stranger with
the use of arms or irresistible force, unless he is guilty of fault or negligence in
failing to provide against the loss or injury from his cause;
2. The loss is due to the acts of the guests, his family, servants, or visitors;
3. The loss arises from the character of the things brought into the hotel.
Art. 2003. The hotel-keeper cannot free himself from
responsibility by posting notices to the effect that he is not liable for the
articles brought by the guest. Any stipulation between the hotel-
keeper and the guest whereby the responsibility of the former as
set forth in articles 1998 to 2001 is suppressed or diminished shall be
void. (n)
EXEMPTION OR DIMUNITION OF LIABILITY
The rule in this article is similar to the rule on common carriers which doesn’t
allow a common carrier to dispense with or limit his responsibility by stipulation or by
posting of notices. Such stipulation is deemed contrary to law, morals, and public policy.
Hotel-keepers and inn-keepers in offering their accommodations to the
public, practically volunteer as depositaries, and as such, they should be subject to
an extraordinary degree of responsibility for the protection and safety of travelers
who have no alternative but rely on good faith and care of those with whom they take
lodging
Inn-keepers by the nature of their business, have supervision and control of
their inns and the premises thereof. As a matter of fact, authorities are to the effect that it
is not necessary in order to hold an inn-keeper liable that the effects of the guests be
actually delivered to him or his employee, it is enough that they are within the inn.
CAN THERE BE STIPULATION EXEMPTING LIABILITY FOR GROSS
NEGLIGENCE? No, since you cannot waive liability for gross negligence as this
would be tantamount to waiving liability for fraud.
Art. 2004. The hotel-keeper has a right to retain the things brought
into the hotel by the guest, as a security for credits on account of
lodging, and supplies usually furnished to hotel guests. (n)
HOTEL-KEEPER’S RIGHT TO RETAIN
1. Nature of a pledge created by operation of law;
2. Incidentally, the act of obtaining food or accommodation in a hotel or inn
without paying thereof constitutes estafa.
HOTEL’S DUTY TO EMPLOYEES’ SAFETY
An employer must take reasonable care to ensure the employees’ safety at work
by implementing the risk management process. So therefore an employee may sue an
employer for breach of an implied term of his/her contract of employment.
HOTEL’S DUTY TO INFORM PRICES OF PRODUCTS AND SERVICES
In the hospitality industry, consumers are informed of prices using pricelists.
These must be displayed in all pubs, restaurants, and similar establishments where food
and drinks are served. Everything that is served must be priced. The prices indicated in
the price lists must be final prices.
EVALUATION:
Answer the following briefly and cite your legal basis.
1. If our society did not have any law, what could possibly happen? Identify some
possible scenarios of a lawless society.
2. Magna Nakaw badly needed cash for his tuition. He happened to be passing by
Maba Hotel and saw Ms. X checking in. While Ms. X was at the hotel lobby
taking a call from her lover, Magna Nakaw robbed Ms. X of her purse. Is Maba
Hotel liable for the robbery?
