CRM CRM Legal Compliance & Risk Management 2 — Questions and Answers
Question 1: Which permit or license must a restaurant obtain before serving alcoholic beverages to guests?
- A state-issued liquor license from the applicable Alcohol Beverage Control (ABC) authority (Correct answer)
- A federal business license from the SBA
- A county health permit only
- A food handler's certificate
Correct answer: A state-issued liquor license from the applicable Alcohol Beverage Control (ABC) authority
Alcohol service requires a state liquor license; serving without one is a criminal offense that can result in fines, closure, and personal liability.
Question 2: A restaurant's hood suppression system must be inspected and maintained primarily to comply with:
- NFPA 96 fire safety standards and local fire code requirements (Correct answer)
- FDA Food Code nutritional labeling rules
- OSHA ergonomic standards
- EPA clean air regulations
Correct answer: NFPA 96 fire safety standards and local fire code requirements
NFPA 96 sets the national standard for ventilation control and fire protection of commercial cooking operations, and local fire codes typically adopt it.
Question 3: Under the Occupational Safety and Health Administration (OSHA), a restaurant is required to maintain a written Hazard Communication Program that includes:
- Safety Data Sheets (SDS) for all hazardous chemicals used on the premises (Correct answer)
- A daily cleaning schedule posted in the restroom
- Monthly fire drill records only
- A list of all food suppliers
Correct answer: Safety Data Sheets (SDS) for all hazardous chemicals used on the premises
OSHA's Hazard Communication Standard requires employers to maintain SDS for every hazardous chemical and train employees on their safe handling.
Question 4: The FDA menu labeling rule requires chain restaurants with 20 or more locations to:
- Display calorie counts for standard menu items on menus and menu boards (Correct answer)
- List the country of origin for all ingredients
- Provide full nutritional panels for every dish
- Post allergen warnings for all 14 major allergens
Correct answer: Display calorie counts for standard menu items on menus and menu boards
The FDA's menu labeling rule, effective 2018, mandates calorie disclosure for standard menu items at covered chain restaurants.
Question 5: A restaurant manager notices a walk-in cooler is holding product at 46°F instead of the required 41°F or below. The correct immediate action is to:
- Remove temperature-sensitive product, call a refrigeration technician, and document the incident (Correct answer)
- Cover the product and wait to see if the temperature drops on its own
- Continue service and adjust the thermostat manually
- Discard only the oldest product and continue using the rest
Correct answer: Remove temperature-sensitive product, call a refrigeration technician, and document the incident
Product held above the safe temperature threshold must be assessed for time-temperature abuse and the equipment failure must be corrected and documented per food safety protocols.
Question 6: Workers' compensation insurance in a restaurant setting is designed to cover:
- Medical expenses and lost wages for employees injured on the job (Correct answer)
- Guest slip-and-fall claims
- Property damage from kitchen fires
- Food spoilage losses from power outages
Correct answer: Medical expenses and lost wages for employees injured on the job
Workers' compensation is a state-mandated insurance program that provides medical and wage benefits to employees who suffer work-related injuries or illnesses.
CRM CRM Legal Compliance & Risk Management 2
Which permit or license must a restaurant obtain before serving alcoholic beverages to guests?