Liability Issues & Risk Management Flashcards
6 cards from real SMART SERVE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Liability Issues & Risk Management flashcards as text
What is 'contributory negligence' in the context of alcohol-related liability?
Answer: The patron's own negligence in becoming intoxicated, which may reduce the establishment's liability
Contributory negligence recognizes that the patron shares responsibility for their own consumption. It may reduce (but not eliminate) the establishment's liability in a lawsuit.
Which of the following practices INCREASES an establishment's liability risk?
Answer: Offering drink specials that encourage rapid consumption (e.g., 'all you can drink')
Drink specials that encourage excessive consumption (all-you-can-drink, oversized drinks, drinking games) increase both the likelihood of over-service and the establishment's legal exposure.
A patron injures themselves by falling down the stairs after being over-served. The stairs were properly maintained. Is the bar liable?
Answer: Yes — the over-service contributed to the patron's inability to navigate stairs safely
The establishment's over-service created the condition (intoxication) that made the patron unable to safely use stairs. The fact that the stairs were properly maintained doesn't eliminate liability for the over-service.
How long after an incident can an establishment potentially face a lawsuit?
Answer: Up to 2 years (limitation period for most civil claims in Ontario)
In Ontario, the general limitation period for civil lawsuits is 2 years from when the incident occurred (or was discovered). This is why maintaining records is important long after an incident.
An establishment has security cameras. How should footage be managed after an alcohol-related incident?
Answer: Preserve the footage — it may be required as evidence and destroying it can result in additional penalties
Security footage should be preserved after any incident. Destroying evidence (spoliation) can result in adverse legal inferences and additional penalties in court.
What role does management play in reducing establishment liability?
Answer: Management sets policies, ensures training, maintains documentation, and models responsible service practices
Management establishes the culture and systems for responsible service: written policies, staff training, enforcement of standards, incident documentation, and leading by example.