TABC Dram Shop Act and Civil Liability 1 — Questions and Answers
Question 1: Under the Texas Dram Shop Act, an alcohol provider can be held civilly liable if they serve alcohol to a person who is:
- Under 30 years of age without a valid ID
- Obviously intoxicated to the extent they present a clear danger to themselves and others (Correct answer)
- Requesting a third drink of the evening
- Accompanied by someone who appears sober
Correct answer: Obviously intoxicated to the extent they present a clear danger to themselves and others
The Texas Dram Shop Act (Texas Alcoholic Beverage Code §2.02) establishes liability when a provider serves someone who is obviously intoxicated to the extent they present a clear danger to themselves and others.
Question 2: The Texas Dram Shop Act is found in which section of Texas law?
- Texas Penal Code Chapter 49
- Texas Health and Safety Code Chapter 161
- Texas Alcoholic Beverage Code Chapter 2 (Correct answer)
- Texas Civil Practice and Remedies Code Chapter 33
Correct answer: Texas Alcoholic Beverage Code Chapter 2
The Texas Dram Shop Act is codified in Texas Alcoholic Beverage Code Chapter 2 (Sections 2.01–2.03), which governs provider liability for alcohol service.
Question 3: What is the primary purpose of the Texas Dram Shop Act?
- To increase tax revenue from alcohol sales
- To establish criminal penalties for drunk driving
- To hold alcohol providers civilly liable for damages caused by intoxicated patrons they over-served (Correct answer)
- To regulate the hours during which alcohol can be sold
Correct answer: To hold alcohol providers civilly liable for damages caused by intoxicated patrons they over-served
The Dram Shop Act creates a civil cause of action allowing injured third parties to hold alcohol providers accountable when over-service of alcohol contributes to harm.
Question 4: Under the Texas Dram Shop Act, who has legal standing to bring a civil lawsuit against an alcohol provider?
- Only the intoxicated person who was served
- Only the Texas Alcoholic Beverage Commission
- Third parties who are injured as a result of the intoxicated person's actions (Correct answer)
- Only law enforcement officers who witnessed the service
Correct answer: Third parties who are injured as a result of the intoxicated person's actions
The Dram Shop Act allows third parties — such as people injured in accidents caused by an over-served patron — to sue the alcohol provider for damages.
Question 5: Which of the following alcohol providers can be held liable under the Texas Dram Shop Act?
- Only licensed bars and nightclubs
- Any provider licensed or permitted to sell or serve alcoholic beverages (Correct answer)
- Only restaurants that serve alcohol with meals
- Only liquor stores and package stores
Correct answer: Any provider licensed or permitted to sell or serve alcoholic beverages
Any holder of a TABC permit or license — including bars, restaurants, stores, and other establishments — can be held liable under the Dram Shop Act.
Question 6: What does 'obvious intoxication' mean in the context of the Texas Dram Shop Act?
- The person's BAC has been measured above 0.08 by a breathalyzer
- The person has consumed more than four alcoholic drinks
- Signs of intoxication are apparent and observable by a reasonable person (Correct answer)
- The person has verbally admitted to being intoxicated
Correct answer: Signs of intoxication are apparent and observable by a reasonable person
Obvious intoxication refers to visible, outward signs — such as slurred speech, unsteady gait, or impaired coordination — that a reasonable person could observe without a breathalyzer.
Question 7: Under the Texas Dram Shop Act, what is the statute of limitations for filing a civil lawsuit?
- 6 months from the date of the incident
- 1 year from the date of the incident
- 2 years from the date of the incident (Correct answer)
- 4 years from the date of the incident
Correct answer: 2 years from the date of the incident
Texas law generally provides a two-year statute of limitations for personal injury claims, including those brought under the Dram Shop Act.
TABC Dram Shop Act and Civil Liability 1
Under the Texas Dram Shop Act, an alcohol provider can be held civilly liable if they serve alcohol to a person who is: