Law and Ethics in Travel & Tourism

Consumer Protection Law

Section 1)

What is a contract and does it need to be in writing? What are the

principal requirements I need to have a valid and enforceable contract in England and Wales?

According to Sir Frederick Pollock, a contract is a legal agreement that is binding two parties which includes set of promises for mutual benefits in written. There is law enforcement in contract and all parties signing contract should follow it. All formal contracts should be in writing which will be required when claiming rights and duties. The need to be in writing rather than verbal is because most of the times any of the parties violates agreement done and written contract can only be right. On the other hand, customer can also take into consideration verbal contracts. They can discuss and conclude verbal contracts verbally and it is dependent upon customer and seller for verbal or written contracts.

The principle requirement to have a valid contract are agreement accepted by both parties, consideration of contract terms, intention to have legal consequences, form is in writing, capacity of entering legally, genuineness of consent freely and meeting of minds and legality purpose of agreement.

Section 2)

Is it possible to include a term in a contract to exclude Far and Wide

Tour's Liability for the death or bodily injury of a person which arises as a result of the negligence of any employees of Far and Wide Tours?

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There are possibilities term is protected by Unfair Contract Terms Act 1977 under Occupiers Liability Acts 1957 and 1984. There is no possibility for negligence in order to avoid liability that person is bearing in business if it is included in contract term. So, there is no possibility for restricting liability for death or personal injury. Therefore, any term that is related and caused due to negligence of employee can be eliminated or restricted because it is clear breach of contractual obligations. There will be responsibility to be handled and liability will not be valid.

Section 3)

Far and Wide Tours has gift shops in some of its hotels in England and

Wales. If a customer buys goods in the shops that are faulty, is the customer allowed to return the goods? Does he need to show a receipt for the goods? Is he entitled to a refund or is it possible to give a credit note instead? If a customer buys a present for a friend in a gift shop of one of the Far and Wide Tour's hotels, can the friend take it back to the shop and ask for a refund if it is faulty?

The customer is protected by Sales of Goods Act 1979. All customers have legal rights to be protected from faulty or damaged goods sales. It is the most important part of legislation for customers and sellers which is to prevent being deceived by sellers due to goods not as described, quality and fit for purpose.

The customer is certainly allowed to return the goods when there is fault in it. In this case, seller will make sure that it is not damaged by customer itself for escaping from legal situations. It is depending upon customer whether to accept repair or replacement whichever is offered by seller. It is suggested that customer accept

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replacement rather than repairing faulty and damaged goods which might be same case after using in certain period of time.

There is no legal obligation for showing receipt but buyer should show proof of purchase such as cheque counterfoil, credit card copy, sales voucher, etc. The proof of any of these will be enough for making claims by customers. In case, if seller is arguing that no exchange or refund without receipt this is not valid and customer have full right for making claims or replacements.

Buyers are entitled for refund and it is depending upon them for accepting credit note (not advisable). It is well-known that customers face problems later on when accepting credit note rather than refund as they might not be able to locate proper item instead of it. Therefore, customers should take careful decision before accepting credit note.

Goods received as gifts and noticed faulty cannot be refunded, repaired or replaced. The reason is that buyer is someone else and owner can only make claims rather than friends or relatives. On the other hand, goods received as gift might not be guaranteed that they were working before gifting it. The general practice is that informing presenter and getting it replaced.

According to Contract Act 1999 under certain circumstances the third parties are provided statutory rights which will be as per two limbed test for circumstances. The test are providing based on whether contract expresses and third party benefits

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when term confers where contracting parties did not intend to enforce it as per his rights.

Section 4)

Customers who buy holidays from Far and Wide Tours also have the

option of taking out travel insurance. The supplier of the insurance is another company in the Far and Wide Tours group called Better Safe Than Sorry Insurance Services Ltd. When filling in the insurance proposal form, are there any duties imposed on the person to be insured? If the customer does not provide all relevant information, what can Better Safe Than Sorry Insurance Services Ltd. do about it?

The insurance contract falls under Foreign Package Holiday (Tour Operators and Travel Agents) Order 1998. There is involvement of insured and insurer with existence of material facts disclosure which is very important for closing contracts.

The duties of insured and insurer are to clearly provide all documents and materials facts (not opinions) before signing contract and paying premium. All material facts are insurers overall risk assessment which is required for making judgement. Insured and insurer before concluding should make sure everything is disclosed so this wont affect contract as it will become void that it never existed. The duties of insured and insurer is each time when contract is renewed or new contract is to be concluded.

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Therefore, if customer did not provide all relevant information then Better Safe Than Sorry Insurance Services Ltd. can void contract that is concluded. Customer should be very careful because this is important for taking insurance except in the case of life insurance.

Section 5)

If costs go up, is Far and Wide Tours as an organizer of package

holidays, permitted to increase the price of its holidays and charge a surcharge to the customers?

The name of regulation is price revision. The increase in price can be only when there is increase in costs of transport, fuel, dues, tax such as landing or embarkation, fees at airports and ports, and exchange rates. The price revision is protected by Regulation 11 and surcharges and increase in price is allowed. There should be increase in price with notification of 30 days or more before customers departure date. Far and Wide Tours can increase and charge surcharge but it has to be according to Regulation 11 rules and regulations.

Section 6)

What is an inn and who is an innkeeper? If at guest fails to pay his bill

for accommodation and/ or food and drink, can an innkeeper retain the guest's belongings?

Inn is another term for hotel and innkeeper is hotelkeeper in a hotel. Innkeeper is the owner, manager or proprietors for running an inn which are the establishments were visitors such as travellers can obtain food, accommodation and drink.

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Innkeeper is obliged to receive and treat well for accommodating travellers when they are willing to pay for facilities that they will use. Innkeeper cannot reject travellers for not making prior reservation or booking. The travellers are entitled for arrangements such as accommodation, food and drink. These facilities will be provided without prior contract establishment between innkeeper and traveller.

When there is payment remaining then innkeeper is not liable for guests debts. At the same time, innkeeper can hold guest belongings such as luggage and others when guest fails to clear debts or bills. It is legal and lawful when innkeeper is holdings guests belongings until debt is cleared. In other case, innkeeper cannot hold guest belongings if bills are discharged and left unpaid or expressed guarantee of payment of such debts.

Section 7)

Far and Wide Tours has several hotels in the UK. If a guest staying at

one of its hotels asks for food or beverage of a certain nature such as, for example, 'diet' cola, is there any legal requirement to comply with guest's request?

The consumer rights are protected by Food Safety Act under consumer protection offences. It is demanded by purchaser that sale of food is not of the nature. It is necessary that supply is made according to quality that is demanded by customer. In the case of failure to do so, this will lead to legal consequences for not providing as per quality that is demanded by customer.

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So, when customer / guest request diet cola he / she should be served with the same rather than regular cola and confirmation will be required. For example, when customer requested diet cola and if it is not available then regular cola will be served only after approval and confirmation of customer. Therefore, the quality of product and demand should be served accordingly. According to hotel law: duty to provide refreshments, it is the responsibility of hotelkeeper to provide reasonable refreshment when guest / traveller is willing to pay for it.

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