Deck 12: Liability and the Sale of Alcohol

Question 1

Which of the following is not an indication of intoxication?

A) Slurred speech
B) Poor coordination
C) Runny nose
D) Excessive friendliness

Answer 1

C

Question 2

Jack's boss, Nancy, held a party at a hotel. Jack had several drinks, some paid for by Nancy. Jack later drove home and got into an accident, killing two people in the other car. Who was held liable?

A) The hotel
B) The employer
C) The two people in the other car
D) All the above

Answer 2

B

Question 3

A bar accused of providing inadequate security can avoid liability by showing that additional security measures would be costly and would create an economic burden.

Answer 3

False

Question 4

Under common law, when a liquor licensee wrongfully served a patron who thereafter injured another person, the injured person was entitled to compensation from the licensee for the resulting damages.

Question 5

A liquor license, once granted, cannot be revoked.

Question 6

Some states require establishments that serve liquor to be certified in an alcohol awareness training program.

Question 7

It is illegal to sell alcohol to people who are visibly intoxicated.

Question 8

Jack drove Samantha to Borders Bar. At Samantha's urging, Jack had a few too many drinks. On the way home Jack was in an accident and Samantha was hurt. True or false: Borders Bar will be liable to Samantha.

Question 9

Often, state laws prohibit underage drinking except for an academic source where tasting alcohol is required for teaching purposes.

Question 10

In most states, the minimum percent by weight of alcohol in a person's blood needed to prove intoxication is:

A) .08
B) .09
C) .10
D) .12

Question 11

Which of the following is not necessary for a liquor license applicant to prove?

A) Evidence exists of the applicant's good character.
B) The applicant has not been convicted of a felony.
C) The applicant has a masters degree from a college.
D) The applicant has not previously abused alcohol.

Question 12

While at a bar, Borris, a patron who was intoxicated, became quarrelsome and bothered several other patrons. Later Borris assaulted another patron, causing a broken arm. True or false: The bar may be liable under these circumstances for the broken arm.

Question 13

To determine if a bar provided adequate security when a patron is injured by an unruly customer, what standard applies?

A) Liability depends on whether the restaurant took sufficient precautionary measures based on the foreseeability of the incident.
B) A restaurant is always liable for injury occurring within its premises.
C) A restaurant is not liable for injury occurring to a guest unless an employee of the restaurant caused the injury.
D) A restaurant is never liable for injury occurring within its premises.

Question 14

Which of the following is not a factor on which the cost of liquor liability insurance is based?

A) Volume of alcohol sold
B) Types of alcohol sold
C) Prior liability of the licensee for illegal sales
D) The hours the bar is open

Question 15

The cost of liquor liability insurance is NOT based on:

A) Volume of alcohol sold by the licensee
B) Prior incidents of illegal sales
C) Nature of the establishment
D) The hours the establishment is closed

Question 16

Dram shop act liability applies only if injury to a third person is caused by a car accident.

Question 17

Licensees can be located in whichever area they choose.

Question 18

Which of the following is not an objective of dram shop acts?

A) To place responsibility on the seller of alcohol for injuries resulting from illegal sales
B) To protect owners of bars and restaurants from liability for consequences of patrons' intoxication
C) To discourage licensees from making illegal liquor sales
D) To afford compensation to victims of illegal alcohol sales

Question 19

Most states prohibit alcohol sales to all but which of the following?

A) People with heart conditions
B) People under age 21
C) People who are habitual drunkards
D) People who are visibly intoxicated

Question 20

Which practice(s) contribute(s) to reduced risk of liability in alcohol sales?

A) Encouraging responsible drinking in marketing and advertising
B) Posting signs of the bar's willingness to drive patrons home
C) Encouraging groups of customers to select a designated driver
D) All the above

Question 21

A bar owner who has a wine and beer license can also sell mixed drinks.

Question 22

A person who regularly drinks at a licensee's premises and frequently becomes intoxicated is called a ______________________________.

Question 23

The licensee is the ____________________ or ____________________.

Question 24

A liquor licensee may be liable for selling to an underage patron, even where the licensee sells not to the young person but to a person of legal age, if ___________________________________________________________________.

Question 25

When a visibly intoxicated person is served at two separate bars, one after the other, _________________________ will be held liable to a third person injured by the patron.

Question 26

The outdated term for a bar, which later became the name of a liability act, is _________________________.

Question 27

Licensees are not responsible and can permit disorderly conduct, such as fighting or indecent sexual behavior, in their restaurant or bar.

Question 28

If a bartender wrongfully serves a patron who has driven to the bar, the bartender should ________________________________________.

Question 29

Three ways in which a licensee can help to reduce its risk of dram shop liability are ________________________________________, ________________________________________, ________________________________________.

Question 30

Insurance to protect against dram shop liability is called ____________________________________________________________________.

Question 31

Punishment to those who wrongfully serve alcohol to a person not legally permitted to drink can include _____________________________________________________________________.

Question 32

People under the age of 21 presenting false IDs or claiming to be legal can _________________________ or _________________________.

Question 33

The law strives to motivate both the ____________________ and ____________________ to strictly comply with the law.

Question 34

Having a "lady's night" or a "men's night" when drinks are offered at a lower price to one gender only, is restricted under the discrimination law.

Question 35

A government warning sign for pregnant women must be displayed by the licensee where alcohol is served.