Question

In: Accounting

Sammy Sosa was staying at the Holiday Inn Hotel in Manhattan when he tripped on a...

Sammy Sosa was staying at the Holiday Inn Hotel in Manhattan when he tripped on a carpet that was buckled. He hit his head on a dresser and sustained severe injuries to his face. The week before, another patron of the hotel tripped on the carpet in the same room and broke her wrist as a result. The hotel management put in a work order to have the carpet fixed and it was to be repaired as soon as Mr. Sosa checked out of the room.

Greta Garbor, the hotel owner, has a franchise agreement with the Holiday Inn Corporation. The agreement allows Ms. Garbor to use the name Holiday Inn and requires that the style of the building, the furnishings, and all the equipment in the hotel conform to certain specifications. In order to repair the carpet, Ms. Garbor had to order a replacement part from a Holiday Inn authorized dealer. The replacement carpet had to conform to Holiday Inn’s specifications. It could not be delivered for ten (10) days, which delayed the repair.

According to the agreement between Ms. Garbor and Holiday Inn, Garbor is responsible for the day-to-day operations, the rates charged, and she keeps the profit after paying Holiday Inn a franchise fee. All the employees work for Garbor, although they are required to wear nametags with the Holiday Inn name and logo. Holiday Inn also provides stationary and pens with the Holiday Inn name and logo that are used by the employees and provided free of charge to the customers. The web site for this particular hotel can be accessed through the Holiday Inn platform. On Ms. Garbor’s hotel web site, the masthead says: Holiday Inn Manhattan Greta Garbor, Owner.  

Mr. Sosa is suing both Holiday Inn and Ms. Garbor for his injuries:

1. Explain why Holiday Inn should be held liable for the injuries; 2. Explain why Holiday Inn should not be held liable; 3. Do you think Holiday Inn should be held liable? Why or why not?   

Solutions

Expert Solution

1.Holiday inn should be held liable for the injuries caused to Mr. Sosa as it is completely due to the gross negligence of the management of holiday inn. It was also mentioned that another patron broke his hand due to the same reason of the carpet, knowing it, the management must have taken proper steps In order to fix it or at least it shouldn't have allotedvthat room to anyone until the problem is fixed. Neither of the actions were taken by Hotel inn which caused damage to Mr.Sosa. Therefore, due to the above said reason's holiday inn should be held liable.

2. The only reason for which holiday inn should not be held liable is that it has a franchise agreement with Ms.Harbor and it is his duty on behalf of the Hotel inn to fix it but he didn't take proper action in time , and what ever so may be the reason. This can be the reason why hotel inn cannot be held liable.

3. Yes, I strongly opine that Hotel inn should be held liable because though it may have given franchise to Ms.Harbor, it is the duty of the management to see that the work is done at the proper time or at least should not have allocated the room to Mr. Sosa. Which proves that the management was clearly negligent, upon knowing the accident caused to another person due to same problem with carpet. Therefore, I think that, Hotel inn should be held liable.

Thank you.


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