Chapter 11 Internet Law INTRODUCTION In the early 1990's the thought of a worldwide computer link to information all over the world was considered ridiculous. Now, the World Wide Web, email and the internet are common place in our day to day tasks with more and more users being attracted because of the advantages offered online. It is not just consumers that have been drawn to the advantages of the internet, so to have governments and non-profit organisations. Equally, the number of businesses utilizing the online forum has grown, with an anticipated US$330 billion being spent by consumers online (Organisation for Economic Co-operation and Development, 1999). This type of business has been labeled electronic commerce or e-commerce. The internet has revolutionised the way parties communicate, interact with each other and participate in new global markets. It presents users with a new range of technology and communication options. However, because of the vast, global, decentralised and non-proprietary nature of the internet, people conducting business on the internet need to be aware of the issues that can arise as part of the transaction. This chapter looks at those issues. WHAT IS E-COMMERCE? Whilst online transactions have been labeled e-commerce, e-commerce has not been defined. A definition that is given as an aid is that of the New Zealand Law Commission (1998, p. 1)): The use of electronic communications technology (instead of paper, telephone or face to face meetings) for business purposes in the widest sense. Electronic commerce is not limited to the purchase and sale of goods and services on the Internet: rather it extends to cover a number of primary and support activities which include electronic publishing, intraorganisational communications, computer supported meetings and communications with other business. One of the chief tools facilitating the progression of e-commerce is the internet and without which the means to communicate and conduct business would not be available. There are some distinctions in the different level at which e-commerce is carried out. These are: B2B - business to business B2C - business to consumer ADVANTAGES OF E-COMMERCE Economically, e-commerce is worth billions of dollars to businesses worldwide. In New Zealand alone, it is estimated that online shoppers spent $242 million (Ministry of Consumer Affairs, 2000). With more consumers using the internet and more businesses offering products and services to the growing market, the economic impact of trading will continue to grow. A reason for e-commerce's growth is that business can realize lower business costs and productivity. This is because it is cheaper to maintain an online store that can always be open. The one store can reach a multitude of people and in doing so reduce the inventory costs and the variable costs that a physical store faces. It is acknowledged that these economic gains can only be achieved if a number of factors are fulfilled including access to an e-commerce system and the necessary skills to launch into the on-line market. Efficiency can also be gained through the increased competitiveness that can arise from the global market as boundaries between businesses blur. As companies become more competitive they will also try to gain a competitive advantage, which will lead to innovation and improved services and prices for consumers. The areas of innovation can lead to lower information transfer costs, lower procurement costs and the ability to conduct business with partners across the world like you were dealing with your next door neighbour. IMPLICATIONS FOR CONSUMER LAW Consumer confidence is critical to the economic success and future of ecommerce. But there are a number of impacts that e-commerce is having on traditional regulatory methods. These are: Geographical borders - the internet has allowed for the ease of communication between people that are long distances away. This has an impact on the applicability of law, jurisdiction and enforcement in consumer law. Entities borders - entities borders are fading away. With the ability to be online, organisations are offered the opportunity to be fluid and change with customer demand. In being able to offer fluidity, organisations can retain no physical location and no physical identity. These cause elements of uncertainty, as the nature of the business and their conduct is necessarily transparent. Societal relationships - societal relationships are changing as a result of globalisation of markets, and a shift towards an economy based on knowledge and information. Information - there is a concentration of information. People have the ability to click a mouse and at the touch of a button gain information. This information can then be stored, disseminated and modified at speed. This information can be illegal or harmful and not necessarily truthful. Dematerialisation - law relies on the physical characteristics such as tangible objects and ownership. By removing the physical element, such as paper or software, there is no physical item that the law can pinpoint to reply on. Speed - there is greater speed in the process that has an impact on the terms of trade. E-commerce because of its fluidity does not accommodate a time lapse for legal consequences to come into occurrence. ONLINE TRADING Online trading involves the formation of contracts using various forms of electronic technology, including email, websites, electronic marketplaces, and electronic data interchange. Online contracts can be entered in a number of ways (Simpson Grierson, 2002): Exchanging e-mail(s) between parties Through a website. A consumer may fill in an online order form and the seller accepts the order. Offering software which visitors to a website can download after reading the applicable terms and conditions and clicking \"I Agree\". Signing up for an electronic service Purchasing goods or services through an online auction Participating in an electronic marketplace Using electronic data interchange (electronic date interchange allows parties to exchange business information between computers over the internet or by a point-to-point communication) Using a mobile phone with internet access. In general, a contract does not have to be in writing. It can be formed orally or by the conduct of the parties. The Electronic Transactions Act makes it clear that the fact that a contract is concluded over the Internet rather than on paper or in person does not affect its validity through the introduction of the Act. The Electronic Transactions Act requires that some contracts must be in writing or signed including bills of exchange or certain credit contracts. The Electronic Transactions Act provides that some contracts that are legally required to be in writing or signed will be able to be in electronic form. Where an offer is made through an advertisement on a website or delivered by email, they could be considered an invitation to treat or an offer depending on the words used. Therefore, if a business is offering goods or services online, it is best practice for the business to ensure its advertisements constitute an invitation to treat (as distinct from an offer) because: The business may not be able to fill every order The business could make a mistake The business may need to control to whom it sells Some countries restrict what goods and services customers can purchase There are some key considerations around acceptance online. The law is still developing around the issue of acceptance in the online environment. Some courts have held that an online contract is formed when the offeree shows his or her acceptance in some way, for example by clicking the \"I Accept\" or typing the words \"I accept\". One of the significant issues around acceptance is the use of electronic signatures and issues surrounding electronic money. Clearly a signature is required for acceptance in certain circumstances but a signature can perform up to seven different functions including: Identification of a person To prove that a person is actively involved in the act of signing To associate a person with the content of the document To provide proof of a party's intention to be bound by the content of the signed document To prove that a person intended to associate himself of herself with the content of the document written by someone else To prove that a person was at a particular place at a specified time To meet a statutory requirement that a particular class of document must be signed in order to be legally valid The technological solution that has been suggested is a digital signature. This operates using a form of cryptography with a public key and a private key. Messages encrypted in this way are made unintelligible using a private key that is unique to the sender of the message. The message cannot be altered after encryption and is sent to the recipient who decrypts it using a matching public key, which is publicly available. Although such a message is unintelligible to anyone else it would lack any guarantee as to the identity of the sender because the public key is not unique. However, such a system will require an infrastructure to be developed to (Harvey, 2003): Issue private keys Guarantee the uniqueness of each private key Guarantee the identity of the authorised user of each private key Guarantee the integrity of each private key Cancel private keys which are compromised Distribute public keys Guarantee that public keys cannot be used to compromise private keys Whether any form of electronic signature will be reliable will be a question of fact and degree decided upon by the Courts. The reliability of an electronic signature may be ascertained in two ways under the Act: whether an electronic signature is as reliable as appropriate in the circumstances and whether it meets presumptive rules of reliability which are: The means of creating the electronic signature is linked to the signatory and to no other person The means of creating the electronic signature was under the control of the signatory and no other person Any alteration of the electronic signature made after the signing is detectable Where the purpose of the legal requirement of a signature is to provide assurance as to the integrity of the information to which it relates, any alteration of that information after the time of signing is detectable. Like with a normal contract, a contract is not binding unless it is supported by consideration. The need to prove the existence of consideration is unaffected by ecommerce. An example of a frequent situation on the internet is where websites get visitors to enter into an agreement that governs the relationship between the visitor and the website. These agreements are often called \"terms of use\". In return for the visitor agreeing to be bound by the terms of use, the website provides consideration in the form of access to the website. For business trading online, it is important to set out clearly the terms and conditions that will apply to the online contract. The terms and conditions should make it clear whether the website is an offer or an advertisement. Likewise, if a business is forming contracts through the exchange of email, then an offer should state clearly that it is an offer, and how the offer may be accepted. The Electronic Transactions Act provide default rules for the time and place of dispatch and receipt of electronic communications, but the parties are free to contract out of these. The terms and conditions of an online contract should cover all relevant trading terms (Simpson Grierson's x-tech group, 2002): Description of goods or services sold Method of payment Delivery When title and risk in the goods sold are passed to the buyer Insurance Taxes, customs and duties How claims or disputes will be resolved Consumer protection Privacy Governing law and jurisdiction It needs to be ensured that business' terms and conditions are enforceable. There are two main issues concerning enforceability. The first is whether the terms and conditions as a whole have been adequately brought to the attention of a customer before the customer either makes an offer or accepts an offer. The party who wishes to rely on the terms and conditions must take all steps to bring them to the attention of the other party before the contract is concluded and in such a manner as to make it clear that the terms and conditions are intended to be contractual terms. The second issue is whether the terms and conditions include any unusual, unexpected or of especially far-reaching effect that would require a higher degree of notice to be enforced. There are some specific types of contracts that are formed online and include: Shrink-wrap licences - these are a common feature of software distribution whereby a software vendor distributes software that has been wrapped in shrink wrap. The licence terms for the software usually sate that the user accepts the licence terms and conditions by opening the shrink-wrapped package, by using the software, or by doing some other specified action. Click-wrap contracts - these occur where the user cannot obtain the product or service until he or she has indicated agreement to the terms of the contract by clicking on an icon or button on a web page. These are commonly seen as \"I Accept\" buttons. Browse-wrap contracts - this refers to an arrangement where the terms and conditions are available online, but the user does not have to indicate acceptance to, or even read the terms and conditions of the contract to receive the benefit offered. Where there has been a failure to require users to indicate acceptance to its licence as a pre-condition of downloading or using its software, they cannot argue that a contract has been formed. Where people want to set up an online store, it is best practice to require the customer to take extra steps to ensure that the contract will be enforceable. These additional steps may include: Pausing at each section of the terms and conditions and accepting each section Making a more obvious affirmative action indicating acceptance Clicking a confirm button. NEW ZEALAND MODEL CODE FOR CONSUMER PROTECTION Despite the guarantees and protections offered by New Zealand legislation under the Consumer Guarantees Act and the Fair Trading Act, the Ministry of Consumer Affairs has launched the New Zealand Model Code for Consumer Protection. The Model Code is based on OECD Guidelines for Consumer Protection in the Context of Electronic Commerce and the Australian Best Practice Model for Electronic Commerce as well as consultation with industry and consumer groups. The Model Code provides guidance to business on fair business practices; advertising and marketing; disclosure of identity and location; contractual mechanisms; complaint and dispute resolution methods; adoption of privacy principles; payment and security mechanisms; and the process for administering the code. The Model Code is stated to be in addition to and will not replace any other obligations under consumer protection and other laws. Adopting the code will ensure consumers have effective protection and confidence when making online transactions. UNSOLICITED ELECTRONIC MESSAGES BILL In the past five years, mass unsolicited commercial emails, or spam have become increasingly costly problem for both internet users and internet service providers. Some estimates indicate that currently as much as between 80 to 90 percent of all incoming email is spam. There is currently before Parliament a Bill to aid the situation - the Unsolicited Messages Bill. The Bill proposes: Prohibiting commercial electronic messages that have a New Zealand link from being sent to people who have not consented or 'opted in' to receiving those messages Prohibiting promotional electronic messages that have a New Zealand link from being sent to people who have not consented or 'opted in' to receiving those messages Requiring all commercial and promotional messages to include accurate information about the person who authorised the sending of the message and a functional unsubscribe facility Prohibiting address-harvesting software and any electronic address list produced using software from being supplied, acquired for use, or used in connection with sending unsolicited electronic messages Maximum penalties of $500,000 for organization and $200,000 for individuals who send spam in contravention of the Bill. The Bill applies to mobile text messaging as well as email, although email spam is the main driving force behind the Bill. Text-messaging spam is not currently perceived as a problem in New Zealand, though there have been recent instances of mass text-message spamming on mobile networks in the United States. The Bill requires spam-related complaints to be first made to Internet Service Providers (ISP's) who will be encouraged to use technological means to deal with the spam problems where possible. If the matter is sufficiently serious, the ISP may refer it to the Department of Internal Affairs for further investigation and possible prosecution. Australia recently enacted similar legislation. If subsequent developments are anything to go by, then the Bill may well by effective in discouraging spammers operating within New Zealand. As may other developed countries have already enacted similar anti-spam measures, the enactment of the Bill, combined with other preventative measures, should provide a more cohesive defence system against spam. GAMING Changes of technology have enabled people to access gaming services that are operated in a multitude of countries, irrespective of the gaming laws operating in their own country. No parts of the existing legislation in gaming specifically contemplate internet gaming or the issues raised by cross-border electronic gaming. An off-shore internet gaming operator, by allowing New Zealand people to participate and gamble on its internet site would, on a strict interpretation of New Zealand gaming law, be operating illegal games of chance. Both the player and the internet casino operator would be committing offences under gaming law. However, the Department of Internal Affairs has taken the view that New Zealanders can enter internet gaming activities in New Zealand that are based overseas, but that is at a player's own risk as there are no consumer protections for internet gaming participants. If offshore internet gaming operations become aware of New Zealand gaming legislation and refused to allow bets from New Zealand residents it would be difficult for the operator to identify the location and age of the gambler in order to comply. CONCLUSION The internet present users with a range of technology and communicate options. It has also allowed for parties to communicate, interact with each other and even participate in new global electronic markets. However, there are some significant legal considerations for doing business on the internet, and both users and providers should be aware of the implications so to ensure that contracts formed are both enforceable and valid. CASE STUDY Henare decides to set up an online store selling New Zealand souvenirs to people overseas. He is hoping that he can attract ex-pats as well as tourists to visit the site and purchase his goods. On the website, he states that he can offer any customer, a genuine New Zealand souvenir delivered to their doorstep anywhere around the world in 5 days. He gets his first order on 31 March 2006 from a South African man wanting some New Zealand wine. Henare feeling rather proud of himself sets off to organise the New Zealand wine. He posts it to the man, only to find that the wine is returned to sender as the South African Government will not accept the wine into the country. Henare finds himself in a bit of a dilemma because the South African man, did not receive his wine and did not receive it within 5 days. The South African man in such a rage threatens to sue Henare because he has breached their contract. Henare becomes worried about the situation and goes to the local library to get a book out on internet law. He becomes increasingly concerned and decides to see you a friend as you have just completed a legal studies paper about the implications of trading on the internet. SOLUTION One of the first things that Henare needs to be made aware of is that he should not put an offer on the website. There is no way that Henare can guarantee access to the product and also get the product to the person within 5 days. He should therefore, state clearly on the main webpage for the site, that anything stated on the website does not form a contract. It would also be wise for Henare to have a separate page to create orders. This would be where a contract is formed. It would be at this point, that Henare would also want to consider some terms and conditions to make the purchaser aware of. Some of these considerations would be: o Whose governing law is paramount o What happens to goods when the country they are sent to rejects them o That he takes all responsibility for packaging the goods, but cannot guarantee that they will get there unbroken Just some of these considerations would have allowed Henare the ability to know where he stands with selling his product. It would also let the customer know what they are letting themselves in for. DISCUSSION QUESTIONS 1. Research e-commerce spending amounts. How much was spent by New Zealander's in the last two years. 2. Visit a website that forms a contract (e.g. Air New Zealand online). How is the contract formed and where are their terms of trade? 3. Find an example of a click-wrap agreement. Chapter 12 Traveller Accommodation INTRODUCTION People staying in hotels or motels want to know that, while there, they and their 5 property are protected. Similarly, those working in the accommodation sector want to know the liabilities they may face for their guests' property. This chapter considers the liability of accommodation providers, otherwise known as innkeepers and their rights. In New Zealand, accommodation law is covered in the Innkeepers Act 1962. 10 Common law duties and rights of accommodation providers are discussed in this chapter, but note that principles from New Zealand common law are incorporated into the Innkeepers Act 1962 and, in this country, legislation supersedes common law. Common law principles are examined as they form the backdrop of legislation in 15 New Zealand; and many countries still base their legal rights and duties on common law, such as the United Kingdom and Australia, where many New Zealanders pursue careers in hospitality work for a period of time. HISTORY Traveller accommodation originates in common law and is derived from ancient 20 Roman law. Roman law outlined special rights and duties for places providing travellers with essential services (Atherton & Atherton, 1998). In ancient times, travel was considered dangerous. Carriers and innkeepers were notorious for exploiting and robbing their customers who, given the general conditions, were vulnerable. Due to the behaviour being difficult to prove, the 25 Romans introduced a practical law, imposing strict duties and responsibilities on innkeepers. These rules were carried out through to medieval European common law (Atherton & Atherton, 1998) and included: Making innkeepers strictly liable for travellers' property Making innkeepers responsible for travellers' personal safety 30 Imposing a duty on innkeepers to provide travellers with transport and accommodation, so they were not left stranded and vulnerable Protecting innkeepers from being taken advantage of by allowing them a lien i.e. to take possession of travellers' property to ensure the cost of services was covered. Nowadays, New Zealand is governed by the Innkeepers Act 1962 and some of these common law obligations and rights are encompassed in the statute. INNKEEPERS ACT 1962 5 The Innkeepers Act 1962 was enacted by Parliament and replaced the rules of common law (s 3). New Zealand is the only country in which legislation has totally replaced common law duties and rights. The Act gives a definition of an innkeeper and regulates the innkeepers' liability for loss or damage to property brought to the inn by guests. The Act also defines the persons to whom innkeepers 10 are liable. The following sections discuss these liabilities and possible defences. Definitions The definitions provided in the Innkeepers Act 1962 provide an understanding of who the parties are and help in interpreting legislation. Critical definitions included in s 2 are: 15 Guest - any traveller to whom an innkeeper is liable as an innkeeper. Inn - any house or place whose proprietor or licensee holds out that, to the extent of that there is available accommodation, they will provide, without special contract, sleeping accommodation for 20 any traveller presenting themselves who appears to be able and willing to pay a reasonable sum for the services and facilities provided and is in a fit state to be received. This includes any licensed hotel. Innkeeper - in relation to a licensed hotel, means the holder of an 25 on-licence under the Sale of Liquor Act 1989 and, in relation to any other inn, means the proprietor of the inn. Licensed hotel - means any hotel where an on-licence is in force under the Sale of Liquor Act 1989. Innkeepers' Liability 30 Under s 4 of the Innkeepers Act 1962, every innkeeper is liable: For loss or damage to property brought to the inn by any guest Whether or not the loss or damage was caused by the default or negligence of: o Another guest or 35 o Innkeeper or o Innkeeper's servant or agent In terms of liability, the provisions of the Act do not limit or affect any other liability by an innkeeper in respect to any property brought to the inn. These liability provisions apply to all travellers who, at the time of the loss or 5 damage had (s 5): engaged sleeping accommodation at the inn and the loss occurred during the period commencing with the midnight preceding and ending with the midnight following, which was a period that the traveller was a guest at the inn and 10 they were entitled to use the accommodation and the property had been received by the innkeeper or his servant. Innkeepers are not liable for loss or damage to (s 7): Vehicles or any property left in them Any horse or other live animal or its harness 15 Limits to Innkeepers Liability While innkeepers are liable, there is a monetary limit placed on the level of liability (s 8). An innkeeper is liable to any one guest for a value not exceeding $300 in respect of any one article, or $1200 in aggregate. If a guest wants an amount in excess of this, it must be proved that the: 20 Property was stolen, lost or damaged through the default, neglect or a wilful act of the innkeeper or his servant, or Property was deposited by or on behalf of the guest expressly for safe custody with someone authorised for this purpose, and the property was placed in a container that was fastened or sealed by 25 the depositor, or Property was offered for deposit and the innkeeper refused to receive it or the guest wished to offer the property, but was not given the opportunity to make the request. Innkeepers are not exempt from liability by an agreement held between them and 30 their guests. No attempt to form an agreement shall not have any force or effect (s 9). Defences The Innkeepers Act provides a general defence for innkeepers, if they can prove that the loss or damage was caused by (s 6): 35 Default, neglect or willful act of the guest Default, neglect or willful act of a servant of or person accompanying the guest An act of God, such as a natural disaster An act of the Queen's enemies or 5 A guest that has assumed exclusive charge and custody of the property or the room at the time of the loss or damage and has shown an intention to relieve the innkeeper of all responsibility. Distraint and seizure When guests, travellers or visitors are in a complex, no property of those persons 10 can be distrained or seized for a claim of (s 10): rent or any other claim against the inn. If property is distrained or seized, that distraint or seizure is void. On application, a District Court Judge may order that property be returned to its owner and costs 15 awarded, as he or she thinks fit. Strictly speaking, accommodation providers in New Zealand do not have the right to lien over the property of guests who do not pay for services provided. Innkeepers power of sale for debts owed Innkeepers are given some rights to retrieve money for debts accrued at the inn, 20 including food, accommodation or services. When innkeepers are in possession of property that was deposited and left at the inn, they can sell and dispose of it by public auction (s 11) to pay the debt; but only after the property has been in their charge or custody or on the premises for two months, without the debt having been paid or satisfied. This section does not 25 apply to vehicles, horses or other live animals, harness or equipment. Innkeepers' power of sale for unclaimed goods Innkeepers may also sell or dispose of the property left at their inn (s 12). They can do this at public auction, if it has not claimed within six months. If the persons who left the property behind later demand their property, innkeepers must pay 30 them the amount remaining after the costs and expenses of advertising and sale are taken out. Unclaimed surplus proceeds of sale When a sale of property has taken place under ss 11 or 12 and the proceeds of sale have not been claimed within three months, innkeepers must pay the amount of 35 the proceeds to the Commissioner of the Inland Revenue (s 13). From this point on, innkeepers are relieved of all liability relating to the money paid. The money paid to the Commissioner of the Inland Revenue is deemed unclaimed money and s 11 of the Unclaimed Money Act 1971 applies. COMMON LAW 5 The common law rights and duties outlined in this section do not apply in New Zealand. However, they do apply in many countries, especially in the English speaking world and member states of the Commonwealth. Duties of innkeepers Innkeepers must at all times provide food, drink and 10 accommodation to all travellers willing to pay the price - these prices must be reasonable. Innkeepers are not allowed to discriminate entry or service to anyone without just cause - they can refuse if the inn is fully occupied or booked out or the traveller is in an unfit state to be 15 entertained. Innkeepers are liable for loss to guests' property provided it is not proved that the guests' own negligence is partly or wholly responsible for the loss. Defences are available to innkeepers, including acts of God, acts of the Queen's enemies, inherent fault 20 or defect, or guest's fault. Innkeepers have a duty to take reasonable care of the safety of guests and to ensure that the premises are safe for the personal use of the guests. Innkeepers have a duty to receive, stable and feed guests' horses, 25 and receive carriages. Nowadays, this applies more to adequate car parking space and other facilities for motor coaches (Atherton & Atherton, 1998). Rights of Innkeepers Innkeepers have a right to make house rules - these rules must be 30 reasonable and be brought to the attention of the guests. Innkeepers have the right to retain possession of any property brought onto the premises, if money is owed to them - it can be returned once the guests' account has been paid (Atherton & Atherton, 1998). 35 These rights and duties only apply if they are within the grounds of the inn, which includes buildings and car parks. COMPARISONS BETWEEN COMMON LAW AND STATUTE LAW A comparison of rights and duties of innkeepers in common law and the 5 Innkeepers Act 1962 reveals that: In common law, it is possible to sue in contract or tort, while it is only possible to sue under the Act in the Innkeepers Act 1962. In common law, house rules potentially limit liability. However, these can be overturned by Judges, if they believe them to be 10 contrary to public policy. In common law, innkeepers can retain possession of goods for nonpayment whereas, under the Innkeepers Act 1962, innkeepers cannot take goods possession of goods when guests have not paid. In statute law, innkeepers have a limited amount liability. This 15 does not happen in common law where the liability amounts can be considerable. Both common and statute law ensure that innkeepers are given defences INTERNATIONAL REGULATIONS 20 So far, this chapter has discussed the New Zealand legal framework defining innkeepers' liability. A number of international organizations and national private organizations also provide frameworks for traveller and innkeeper protection. This section examines the roles of two of those organisations. International Hotel and Restaurant Association (IHRA) 25 The International Hotel and Restaurant Association's purpose is to promote and defend the interests of the hotel and restaurant industry worldwide (International Hotel and Restaurant Association, 2004). They are a non-profit organisation dedicated to helping members achieve their business objectives and prepare for the future. The IHRA is made up of 30 international and national hotel and/or restaurant organizations. It acts as an industry watchdog, protecting business interests; and also stages a number of high profile events to help companies build business networks. Additionally, it offers timely reports to keep businesses informed and up to date (International Hotel and Restaurant Association, 2004). 35 The IHRA has taken up a number of key initiatives including (Atherton & Atherton, 1998): International hotel regulations Code of practice on hotel/travel agency relations Standard vouchers for hotel reservations 5 Standard form booking procedures, contracts, and rules between coach operators and hoteliers for group accommodation Environmental action packs for hotels. Motel Association of New Zealand (MANZ) MANZ is the national trade body for the New Zealand motel industry, with nearly 10 1000 members throughout the country. One of its principle aims is to enhance the quality of the motel product by supporting members in all aspects of running their business. In doing so, MANZ facilitates delivery of substantial bulk-buying discounts and services from commercial suppliers. These include free legal advice, regular news and information, and accommodation discounts (Motel Association 15 of New Zealand, 2004). Accomodation providers that are members of MANZ must follow its code of ethics and motto: 'Quality, Service, Value and Accountability.' Members are required to observe all relevant laws and regulations, and not discriminate against customers. They must also maintain high standards and fair practices in all 20 business transactions (Motel Association of New Zealand, 2004). CONCLUSION The provisions of the Innkeepers Act 1962 form the main legal framework of the rights, duties and liabilities of innkeepers in New Zealand. Common law provisions do not apply in this country, as legislation requires the Act to override 25 them. While there are similarities between common law and the Innkeepers Act 1962 there are also distinct differences, like the right of lien over guests' property and the extent of liability innkeepers can be exposed to. DISCUSSION QUESTIONS 30 1.What is the innkeeper liable for under the Innkeepers Act 1962? 2.Where did innkeepers' duties and rights derive from? 3.Compare and contrast the Innkeepers Act 1962 and the common law. What organsations exist to aid innkeepers in New Zealand and 4.overseas? Explain their role