1. 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.
2. Most states prohibit alcohol sales to all but which of the following?
a.
People with heart conditions
c.
People who are habitual drunkards
b.
People under age 21
d.
People who are visibly intoxicated
3. Which of the following is not an indication of intoxication?
a.
Slurred speech
c.
Runny nose
b.
Poor coordination
d.
Excessive friendliness
4. In most states, the minimum percent by weight of alcohol in a person’s blood needed to prove
intoxication is:
a.
.08
c.
.10
b.
.09
d.
.12
5. 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
6. 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
7. 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.
8. 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
9. 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
c.
The two people in the other car
b.
The employer
d.
All the above
10. 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
1. A liquor license, once granted, cannot be revoked.
2. Some states require establishments that serve liquor to be certified in an alcohol awareness training
program.
3. 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.
4. Dram shop act liability applies only if injury to a third person is caused by a car accident.
5. 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.
6. 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.
7. 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.
8. It is illegal to sell alcohol to people who are visibly intoxicated.
9. Licensees can be located in whichever area they choose.
10. Often, state laws prohibit underage drinking except for an academic source where tasting alcohol is
required for teaching purposes.
11. A government warning sign for pregnant women must be displayed by the licensee where alcohol is
served.
12. Licensees are not responsible and can permit disorderly conduct, such as fighting or indecent sexual
behavior, in their restaurant or bar.
13. 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.
14. A bar owner who has a wine and beer license can also sell mixed drinks.
1. A person who regularly drinks at a licensee’s premises and frequently becomes intoxicated is called a
______________________________.
2. The law strives to motivate both the ____________________ and ____________________ to strictly
comply with the law.
3. The licensee is the ____________________ or ____________________.
4. The outdated term for a bar, which later became the name of a liability act, is
_________________________.
5. 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.
6. People under the age of 21 presenting false IDs or claiming to be legal can
_________________________ or _________________________.
1. Three ways in which a licensee can help to reduce its risk of dram shop liability are
________________________________________, ________________________________________,
________________________________________.
2. Insurance to protect against dram shop liability is called
____________________________________________________________________.
3. If a bartender wrongfully serves a patron who has driven to the bar, the bartender should
________________________________________.
4. 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
___________________________________________________________________.
5. Punishment to those who wrongfully serve alcohol to a person not legally permitted to drink can
include _____________________________________________________________________.
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