Final Exam Tues April 30th 5 30 7 30pm Ch 12 Liability and the Sale of Alcohol License to Sell Liquor o No business can sell alcohol without first obtaining a liqour license from the state in which the bar or restaurant is located Illegal Sales o Sales are prohibited to people under age 21 people who are visibly intoxicated and known habitual drunkards Therefore a restaurant or bar that wrongfully provides alcohol to a person not legally entitled to drink risk harsh punishment such as Suspension or revocation of liquor license civil liability for injuries caused by the patron who was wrongfully served criminal liability for serving underage patrons which could result in jail or a fine Sales to Underage Patrons o Acceptable forms of identification state issued drivers license state issued nondriver id card military id or a passport o Having a fake ID in the state of FL with your picture and real information it is a felony If your using someone else s ID misdemeanor o o Some state laws that prohibit underage drinking include an exception for an academic course in which tasting alcohol is required for instructional purposes Sales to People Who Are Visibly Intoxicated o Indications slurred speech bloodshot glassy or watery eyes flushed face and poor coordination which is often evidenced by difficulty in performing such acts as making change or handling money lighting a cigarette removing a credit card from a wallet standing without swaying or walking without stumbling or staggering being overly friendly loud argumentative aggressive crude or annoying to other patrons o BAC blood alcohol content if the BAC is 08 or higher the person is legally intoxicated Habitual Drunkards intoxicated o Someone who regularly imbibes alcohol and frequently becomes A licensee who serves a drunkard risks losing his license and may be liable for injuries caused by such person Alcohol Vendors liability under Common Law o Under common law in most states the licensee was not liable for damages caused when it served alcohol to someone who was under 21 visibly intoxicated or a habitual drunkard and that person was injured or caused injury to another Thus is a wrongfully served customer left a bar drove a car and on the way home caused an accident in which he or someone else was injured the bar was not held liable o According to the common law rule the cause of the injuries was the consumption and not the sale of the liquor The injured person if other than the operator could sue only the drunk driver If the wrongfully served customer was injured he had no remedy bar rest not liable o Alcohol Vendors Liability Greatly Increases under Dram Shop Acts Dram shop is an outdated term for a bar Dram shop Acts impose liability on a restaurant or bar for certain injuries resulting from illegal sales Objective discourage proprietors from selling alcohol illegally and to afford compensation to victims whose injuries emanate from the unlawful sale of alcohol Liability of the bar restaurant is not restricted to car accidents any injury caused by the wrongfully served patron will suffice for example fighting o Alcohol Vendor s Liability to the Patron When a licensee makes an illegal sale and the person improperly served is injured is the licensee liable to the patron The answer depending on the state In most states dram shop acts do not impose liability for injuries to wrongfully served customers In those states the act imposes liability only for injuries to a third person One court explained In our view a rule which allows an intoxicated individual to hold a tavern owner liable without regard to his own actions in continuing to consume alcohol promotes irresponsibility and rewards drunk driving Referenced case a bar patron drank to excess and was injured in a car accident he caused while driving home Jury verdict in favor of the bar Neither common law nor the state dram shop act imposed liability on a licensee for injuries to a wrongfully served patron Another case plaintiff served at the defendant s bar after reaching a visibly intoxicated condition He then fell off stool and permanently injured his leg requiring brace and crutches His action against the bar was dismissed because neither Maryland s dram shop act nor common law permits the patron to sue the licensee In a Mississippi case Allegedly was served alcohol after becoming visibly intoxicated She fell over a railing 30 feet to the lobby floor Her action for damages against the hotel was dismissed o Minority Rule Minorities of states allow a wrongfully served patron to sue a licensee for resulting injuries some based on particulars of the state s dram shop law and others based on negligence Example of dram shop liability Texas case patron illegally served alcohol While driving home she ran into a telephone poll and was seriously injured The bar found liable Colorado case the bar was held responsible on negligence theory The plaintiff the decedent s relative claimed the deceased was served at the defendant s restaurant when he was visibly intoxicated and then drove his car off a mountain road and was killed Note in some states that allow wrongfully served driver to sue the bar can assert the defense of comparative negligence thereby requiring the jury to allocate the relative liability for the accident between the tavern and the intoxicated patron and reducing the bar s liability accordingly o Alcohol Vendor s Liability to Third Parties If a licensee serves a visibly intoxicated customer who while driving home hits another car causing injury to its driver the licensee will be liable to that driver o Two Licensees Serving One Patron If a visibly intoxicated person is served first at one bar and then at a second one both will be liable to a third person injured by the person The injured person cannot however recover twice for the same injuries Instead the liability will be allocated between the two bars If however the drinker was not visibly intoxicated until he arrived at the second bar the first bar will not be liable o States without Dram Shop Acts Some have created negligence cause of action for holding the licensee liable when an illegally served patron causes injury to a third party Nevada no dram shop laws only the customer who caused the injury will be liable o Liquor Liability Insurance A licensee can purchase insurance to cover dram shop liability Insurance is often called liquor liability insurance The cost is based on numerous factors including the volume