Smart Serve Liability Issues & Risk Management

Question 1

Under Ontario's Liquor Licence Act, which of the following can result in the suspension or revocation of a liquor licence?

Accepted Answer

Selling alcohol to a minor or an intoxicated person

Answer

Having a noisy but peaceful patio

Answer

Offering a happy hour promotion

Answer

Closing early on weekdays

Question 2

What is 'host liability' in the context of responsible alcohol service?

Accepted Answer

The legal obligation of an establishment and its staff to prevent harm caused by over-serving alcohol

Answer

The host's responsibility to provide free food with every drink

Answer

A host's duty to entertain guests at all times

Answer

A requirement to hire a host for every event

Question 3

A Smart Serve-certified server who over-serves a patron can face which of the following consequences?

Accepted Answer

Personal fines, loss of certification, and civil liability

Answer

Only a verbal warning from management

Answer

No consequences because the certification protects them

Answer

Only the licence holder bears responsibility

Question 4

Which documentation practice best protects an establishment from liability claims?

Accepted Answer

Maintaining incident logs that record refusals, observable signs of intoxication, and steps taken

Answer

Keeping sales records only for alcoholic beverages

Answer

Retaining only credit card receipts

Answer

Filming all customers without their knowledge

Question 5

Why is it important for all staff in a licensed establishment—not just servers—to have Smart Serve certification?

Accepted Answer

It is a legal requirement for all staff in Ontario to hold Smart Serve certification

Answer

It ensures consistent responsible service practices and reduces overall liability for the establishment

Answer

Only servers are required to be certified; others are optional

Answer

It allows managers to avoid training their staff further

Question 6

An intoxicated patron insists they are fine to drive. What is the best risk management strategy?

Accepted Answer

Offer to call a taxi or rideshare and, if they insist on driving, notify the police

Answer

Let them drive since they claim to be sober

Answer

Give them a coffee and send them on their way

Answer

Ask other patrons to stop them physically