Chapter 12 Review Questions End of Chapter Questions 1 The law prohibits the sale of alcohol to certain categories of people Identify those categories What penalties do the states impose for illegal sales a Underage visibly intoxicated habitual drunkards b 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 fines 2 What is meant by a dram shop liability a It is the responsibility of the vendor for any injuries resulting from illegal sales of alcohol 3 When a patron who is visibly intoxicated continues to drink at two different licensees and then is in a two car accident injuring the driver of the second car which licensee is liable to the driver of the second car a If he was visibly intoxicated at BOTH bars then both the licensees are responsible If he wasn t visibly intoxicated at the first one but was at the second one then just the second one is liable Identify three strategies for limiting dram shop liability 4 a Adopt internal written policies b Encourage designated driving c Post signs to inform customers of their responsibilities 5 What behaviors might alert wait service personnel that a patron is visibly 6 Indentify five regulations some states impose on liquor licensees intoxicated a Slurred speech b Bloodshot glassy or watery eyes c Flushed face d Poor coordination a Age of alcohol servers 18 or 19 b Restriction on alcohol sales on Sunday c Warnings to pregnant women d Prohibition of illegal gambling e Prohibition of disorderly conduct 7 What is an AWOL device and why are many states banning it a Enables consumers to inhale alcohol vapors b Because it allows alcohol to travel directly to the blood stream thus it can cause dangerously fast intoxication Discussion Questions 1 In most states a patron who is illegally served alcohol and thereafter injured as a result cannot sue the licensee who made the illegal sale A 3rd party person injured by the patron can sue the licensee What is the rationale for distinguishing between the two a Because a rule that allows an intoxicated individual to hold a licensee liable without regard to his her own actions in continuing to consume alcohol promotes irresponsibility and rewards drunk driving 2 Why does the law impose a minimum age for legal drinking of alcohol a People under 21 are incompetent by reason of their youth and inexperience to deal responsibly with the effects of alcohol 3 Raj is a server at a bar A customer orders a beer Raj knows he has served the customer several beers already What factors should Raj consider in determining whether to serve the customer another drink a If the customer has i Slurred speech ii Bloodshot glassy or watery eyes iii Flushed face iv Poor coordination v Becomes overly friendly Application Questions 1 4 From the previous question if Raj determines that the customer is intoxicated how might Raj both refuse to provide another beer but nonetheless appease the patron a Offer nonalcoholic beer state that there is a limit on the number of drinks served and kindly offer him something else If he persists call the manager over Jerry had been drinking all evening at the Bonger Bar and became visibly intoxicated The bartender continued to serve him Thereafter Jerry left the bar and still visibly intoxicated went to a restaurant where he had another drink While driving home from the restaurant Jerry drove his car in the wrong lane and crashed into another car Both jerry and the other driver suffered serious injuries Both sued the restaurant and the bar Who is liable to whom a BOTH the restaurant and the bar are liable to the other driver and it will be allocated between the two licensees Jerry cannot collect damages from EITHER place b c the licensees are protected under the dram shop acts 2 A bartender at the Rascal Caf served a female who was 19 She had only one drink Due to the eefects of the alcohol she failed to stop at a red light and hit a pedestrian who was crossing the street Is the caf liable to the pedestrian for the injuries Why or why not a Yes under the dram shop act innocent injured third parties due to illegal sales of alcohol are a liability to the licensee 3 Assume in the previous question that no one from the caf asked the patron for proof of age What penalty might the caf face and why a They can be fined or brought to jail for illegally serving a minor They are still liable for the injured third party Chapter 13 Review Questions 1 Name the four groups that comprise the travel industry a Suppliers of travel services b Travel wholesalers c Travel agents d Travelers are relaxed 2 What differentiates Small Claims Court from other courts a Lawyers are not necessary b c the rules of procedure and evidence 3 If an agent acts with authority for a principal who is legally bound by the acts of the agent a The Principal is legally bound by the agent s act and agent is not a 4 What is the difference between an agent and an independent contractor is the person so authorized the one who represents or acts for the principal consistent with the principal s direction Independent contractors are people who contract to do work for someone else but are engaged in an independent business for themselves b 5 What is a tariff luggage a Rule or condition of air travel that binds the airline and passengers 6 What is an airline s responsibility when it takes custody of a passenger s a When travelers hand their baggage to an airline they are entering into a contract w the airline b The contract binds the airline to deliver the baggage to its destination and return it to the traveler upon arrival 7 What two treaties have bound the US and other countries on matters involving international plane flights Which treaty is in effect now a The Warsaw Convention b The Montreal Convention still in effect today 8 Why should a TA be familiar with the places he recommends a If not he is liable for giving false information or for not warning travelers of danger 9 What is a disclaimer and how do the courts treat travel agents disclaimers a a term in contract that attempts to avoid all liability by one party of the contract b Effectiveness is questionable not usually enforced in court will not relieve TAs from their own negligence or wrongful conduct 10 What obligation if any does an airline have to passengers when it cancels a flight due to bad weather a To avoid liability the airline must assist