Texas Alcoholic Beverage Commission (TABC) Practice Exam

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What does the Dram Shop Act mean to a seller/server?

  1. The seller/server can refuse service at any time.

  2. The seller/server can be held liable if they over-serve customers.

  3. The seller/server can be held civilly liable if they sell alcohol to an intoxicated person who causes harm.

  4. The seller/server is exempt from legal actions regarding alcohol service.

The correct answer is: The seller/server can be held civilly liable if they sell alcohol to an intoxicated person who causes harm.

The Dram Shop Act holds significant implications for sellers and servers of alcohol, primarily focusing on their responsibility toward the customers they serve. This act allows for civil liability to be imposed on the seller or server if they provide alcohol to an individual who is already intoxicated and that person subsequently causes harm to themselves or others. This means that if a server fails to recognize that a patron is intoxicated and continues serving them, they can be held accountable for any negative consequences that arise, such as accidents or injuries resulting from the patron's actions. The rationale behind this legislation is to encourage responsible alcohol service, promoting the safe consumption of alcohol and reducing instances of alcohol-related harm within the community. Understanding this responsibility helps sellers and servers make informed decisions about when to refuse service to individuals, ensuring that they adhere to the guidelines set by the Dram Shop Act while prioritizing the safety of their patrons and the public.

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