Dram Shop Act and Civil Liability Flashcards

A bartender serves alcohol to a patron showing clear signs of intoxication. The patron later causes a car accident injuring another driver. Under the Dram Shop Act, who may be sued?

Answer: The licensed establishment and potentially the employer, in addition to the intoxicated patron

The injured driver can bring a Dram Shop claim against the licensed establishment (and employer) for over-serving the patron, in addition to suing the intoxicated patron directly.

A server notices a customer is slurring words and stumbling but continues to serve them because the manager said 'keep the drinks coming.' Can the employer use the safe harbor defense?

Answer: No, because the manager directly encouraged the violation of alcohol service laws

When management encourages employees to violate the law by continuing to serve an obviously intoxicated patron, the employer loses eligibility for the safe harbor defense.

Under the Texas Dram Shop Act, which element does a plaintiff NOT need to prove to establish liability?

Answer: The defendant knew the patron intended to drive after leaving

The Dram Shop Act does not require proving the provider knew the patron planned to drive; it requires proving obvious intoxication and that it caused the plaintiff's injuries.

A jury in a Dram Shop case finds the bar 40% at fault, the intoxicated driver 55% at fault, and assigns 5% fault to a third party. How does Texas proportionate responsibility affect the bar's liability?

Answer: The bar pays 40% of the total damages awarded

Under Texas proportionate responsibility, each defendant pays damages proportional to their assigned percentage of fault, so the bar would pay 40% of the total damages.

Which scenario would most likely support a successful Dram Shop Act claim against a licensed establishment?

Answer: A patron consumed alcohol at three different bars before causing an accident; the third bar served them while they showed visible intoxication

The third bar serving a visibly intoxicated patron, whose intoxication then causes an accident, establishes the key elements: licensed provider, obvious intoxication, and causation of harm.

An alcohol provider wants to protect their business from Dram Shop liability. Which action provides the MOST legal protection?

Answer: Requiring all employees who sell or serve alcohol to complete a TABC-approved seller/server training program and enforcing responsible service policies

The only statutory protection available under the Dram Shop Act is the safe harbor defense, which requires employer-mandated completion of an approved seller/server training program and no encouragement of violations.

Under Texas Alcoholic Beverage Code §2.03, an employee who sells or serves alcohol to an obviously intoxicated person creates liability for the employer. How does the employee's personal liability factor in?

Answer: The employer may be vicariously liable for the employee's actions, but the employee may also face individual liability

Texas law can hold both the employer vicariously liable for employee actions and, in some circumstances, the individual employee personally liable for their role in the over-service.