Chapter 12-14 ReviewChapter 12: Liability and the Sale of Alcohol• Alcoholic Beverages and Hospitality:o Restaurants and bars have various goals concerning the sale of alcohol, some of which are conflicting Liquor is a moneymaker Restaurants and bars have significant motivation to moderate their promotion of alch.o Gov’t shows NO leniency enforcing liquor lawso Violation can result in substantial liabilityo Intoxicated persons are frequently belligerent and cause disturbances that interfere w/other patronso Potential Consequences: Revocation of liquor license • May result in closure of business Jail time Legal fees Payment for injuries and property damage in a civil suito Liquor establishment is well-advised to strictly follow the lawo License to sell liquor No business can sell alcohol without first obtaining a liquor license from the state Once granted, a license may be revoked or suspended by the state if the licensee violates the liquor laws To qualify for a license the applicant must prove that:• Have not abused liquor in the pasto As a consumer, seller, driver, etc• Has not been convicted of a felony• Is otherwise of good charactero Illegal sales: In most states, sales are prohibited to people who are:• Under 21 • Visibly intoxicated• Known habitual drunkards Effects of alcohol are potentially dangerous A restaurant that illegally provides alcohol risks harsh penalties• Suspension/revocation of a liquor license• Civil liability for injuries caused by the patron who was wrongfully served• Criminal liability for serving underage patrons• Jail and fineso Sales to underage: It is the responsibility of the restaurant or bar to ask for acceptableID Management must determine what qualifies as acceptable:• State-issued driver’s license• State-issued non-driver ID card• Military ID card• Passport Fake ID’s• Frequently reinforce to employees the importance of confirming age• In many states it is illegal for people under 21 to misrepresent their age or present false ID Purchasing alcohol for Underage Drinkers• If the licensee has no reason to know that the underage person would gain access to the alcohol, there is no liability o Ex: Sliger buying beer for his 20 year old son• A seller will incur liability if they should have known that the adult purchased the alcohol for a minor Academic Exception: • Academic courses in which tasting alcohol is required for institutional purposeso Sales to People who are visibly intoxicated: A person’s appearance or actions must indicate they are intoxicated• Slurred speech• Bloodshot, glassy, or watery eyes• Flushed face• Poor coordination• Test ?: which of the following is not a sign of intoxication? Can be difficult to detect Servers should be trained to recognize o Proving Visible Intoxication  Various people may have observed the customer Use of a breathalyzer that measures blood alcohol contact If BAC is .08 or higher a person is legally intoxicated Other factors to aid in proving that a bar served a patron illegally• Failure by the facility to train its employees about alcohol consumption and intoxication indicators• Absence of a policy identifying how much liquor can be served to a customer• Rotation of wait staff in the course of an evening so that no one server keeps track of the amount a particular patron drinkso Sales to known habitual drunkards Someone who regularly drinks alcohol and frequently becomes intoxicated • Alcohol Vendors’ Liability under Common Lawo Licensees face potential liability for injuries caused by a customer who is served alcohol illegallyo Under common law, licensee was not liable for damages caused when it served alcohol illegally and that patron was injured or caused injury to anothero As the number of alcohol-related accidents grew, most states found the common law rule unsatisfactory o Common law rule did nothing to encourage the server to prevent patrons from abusing alcoholo Another weakness was that many intoxicated persons who cause injury have little money with which to compensate those they injureo Owner of a restaurant or bar is more likely to have insurance and assets• Dram Shop Actso Discourage proprietors from selling alcohol illegallyo Afford compensation to victims whose injuries emanate from the unlawful sale of alcoholo Potential liability is very importanto Verdicts have financially ruined the bar or restaurant involvedo In a few states, damages are capped at a specific amount on the theory that the major share of the responsibility should fall on the intoxicated drivero Not restricted to car accidentso Can include injuries resulting from fights o Alcohol Vendor’s Liability to the Patron: Dram shop acts do not impose liabilities for injuries to wrongfully served customers (as distinct from a third person) But they do impose liability only to a 3rd party (person) Minority Rule:• A minority of states allow the wrongfully served patron to sue the licensee for resulting injures:o Some based on state’s dram shop lawo Some based on negligenceo Alcohol Vendor’s Liability to Third Parties: The bar may be held liable to others who are injured from the patron’s intoxication o Alcohol Vendor’s Liability to passengers in patron’s car If passenger purchased alcohol or encouraged driver to drink, most states will not impose dram shop liability If passenger did not contribute to driver’s intoxication, the bar or restaurant may be liable for passenger’s injurieso If a visibly intoxicated person is served first at one bar then at a second one, both will be held liable Liability will be allocated between the bars If the drinker was not visibly intoxicated until he arrived at the 2nd bar, the first bar will not be liableo Apportionment of Liability among defendants In some states, comparative negligence applies A restaurant or bar can reduce its liability by the percentage of liability attributed to the drivero Apportionment of Liability where plaintiff is negligent If the person injured contributed to the cause of the accident, the injured person’s recovery will be reduced accordinglyo Dram Shop Liability on some employers for office parties Potential liability for employers Supplying alcohol at company events held at a location other than the premises of a liquor license Some states hold the company liable