Dram Shop Act and Civil Liability Flashcards
7 cards from real TABC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Dram Shop Act and Civil Liability flashcards as text
What is the 'safe harbor' defense under the Texas Dram Shop Act?
Answer: A defense available to employers who required employees to complete TABC-approved seller training
The safe harbor defense allows an employer to avoid liability if they required employees to complete an approved seller/server training program and did not encourage violations of the law.
For an employer to qualify for the safe harbor defense under the Dram Shop Act, the employee's TABC-approved training must have been completed within how many years?
Answer: 2 years
The safe harbor defense requires that the employee completed an approved seller/server training program within the preceding two years of the incident.
Which condition DISQUALIFIES an employer from using the safe harbor defense under the Dram Shop Act?
Answer: The employer directly or indirectly encouraged the employee to violate the law
If an employer directly or indirectly encouraged the employee to violate the alcoholic beverage laws, the safe harbor defense is unavailable regardless of training completion.
Under the Texas proportionate responsibility system, how does a Dram Shop defendant's liability compare to other at-fault parties?
Answer: Fault is apportioned among all parties based on their percentage of responsibility
Texas uses a proportionate responsibility system where the jury assigns a percentage of fault to each responsible party, and damages are allocated accordingly.
Can a social host (private individual) be held liable under the Texas Dram Shop Act for serving alcohol at a party?
Answer: No, the Dram Shop Act applies only to licensed or permitted alcohol providers
The Texas Dram Shop Act specifically applies to providers who hold TABC licenses or permits; social hosts serving alcohol at private events do not fall under this statute.
What types of damages can be awarded in a successful Texas Dram Shop Act civil lawsuit?
Answer: Compensatory damages including medical expenses, lost wages, pain and suffering, and potentially exemplary damages
Successful Dram Shop plaintiffs can recover a broad range of compensatory damages and, in cases of gross negligence or malice, exemplary (punitive) damages.
If a TABC-licensed establishment is found liable under the Dram Shop Act, which of the following consequences may also result?
Answer: Civil damages AND potential administrative action by TABC, including license suspension or revocation
A Dram Shop finding can trigger both civil liability and separate TABC administrative proceedings that may result in license suspension, revocation, or fines.