Alcohol Laws & Server Responsibilities Flashcards

A customer who was refused alcohol becomes angry and threatens to report the server to management. The server should:

Answer: Stand firm on the refusal and notify management proactively

A server must maintain the refusal regardless of threats or pressure, and should proactively alert management so they are prepared to handle the situation.

What distinguishes a 'beer and wine license' from a 'full liquor license'?

Answer: A full liquor license allows spirits in addition to beer and wine

A beer and wine license restricts the establishment to selling only fermented beverages, while a full liquor license also permits the sale of distilled spirits.

Under the National Minimum Drinking Age Act of 1984, states that allow persons under 21 to purchase alcohol risk:

Answer: Loss of a percentage of their federal highway funding

The Act incentivizes compliance by threatening to withhold a portion of federal highway construction funds from any state that does not enforce a minimum drinking age of 21.

A server notices a patron has been drinking for several hours and is now slurring words. The server already has a pending drink order for that patron. What should happen?

Answer: Cancel the drink order and refuse further service

Once clear signs of intoxication appear, service must stop immediately — a drink already ordered does not obligate the server to deliver it.

Which of the following BEST defines 'vicarious liability' in an RSA context?

Answer: An employer being held responsible for the alcohol-related actions of their employees

Vicarious liability means an employer can be held legally responsible for the negligent acts of their employees — including a server who over-serves a patron — because the employee acted within the scope of employment.

What is the significance of a 'liquor liability insurance' policy for an alcohol-serving establishment?

Answer: It provides financial protection if the establishment is sued under dram shop laws

Liquor liability insurance covers legal defense costs and damages if the establishment is sued because a patron they served caused injury or death while intoxicated.

If a state law and a local ordinance both regulate alcohol service hours but conflict with each other, which generally takes precedence?

Answer: State law generally prevails, unless state law specifically allows local governments to impose stricter rules

State law typically preempts conflicting local ordinances, though many states explicitly authorize municipalities to enact stricter (but not more permissive) alcohol regulations.