Final Exam: Tues, April 30th, 5:30-7:30pmCh. 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 o If your using someone else’s ID: misdemeanor 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 o Someone who regularly imbibes alcohol and frequently becomes intoxicated  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 liableo 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 liableo 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, fightingo 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 dismissedo 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 drivero 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 liableo 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