It is a dark & stormy night in the mountains. A motel keeper looks out the window of her lobby and sees snow coming down hard. Knowing that travelers will be forced off the road due to the weather, she puts away her sign that says rooms $29.99 and replaces it with one that says “Snow Rate: $129.99.”
a. What liability, if any, is the innkeeper subjecting herself to?
b. What if a traveler called from a few miles away asking what the rate was and accepted a reservation and asked her to hold the room. Would this change your analysis?
c. What if the snow rate applied all winter long during the ski season, would this change your analysis?
d. What if a guest already had a reservation at $29.99 but left no deposit and the motel operator wanted to add an additional surcharge for the snow rate?
e. If a group of drunk skiers showed-up after a few hours of après-ski, could she turn them away, or would she have to provide accommodation?
f. What if the skiers all had green mohawks and pierced noses?
g. How would it change your analysis if the skiers were members of a minority group?