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The outdated term for a bar, which later became the name of a liability act, is _________________________.

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

A) True
B) False

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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

E) A) and B)
F) None of the above

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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.

A) True
B) False

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

A) True
B) False

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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.

E) A) and D)
F) A) and C)

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

A) True
B) False

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

A) True
B) False

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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

E) None of the above
F) A) and B)

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Licensees can be located in whichever area they choose.

A) True
B) False

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

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employee training; offering wrongfully s...

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A liquor license, once granted, cannot be revoked.

A) True
B) False

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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

E) B) and C)
F) C) and D)

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The licensee is the ____________________ or ____________________.

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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

E) C) and D)
F) B) and C)

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