Can business purchase liquor liability insurance

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Reference no: EM131160934

QUESTION 1: Dunder Mufflin paper company now located in Oklahoma was having its annual holiday party in December. The party was held in the office and Dunder Mifflin provided the alcohol and refreshments. Meredith, a known alcoholic drank too much as expected. On the way home from the party, Meredith ran an innocent third party off of the road, who got badly injured. Meredith was uninsured so the victim sued Dunder Mifflin under the dram shop law. Dunder Mifflin responded in court that they were not liable under the dram shop law because they were not a dram shop but a social host, and therefore not liable to third parties. Dunder Mifflin's defense is valid.

True

False

QUESTION 2: A 70 year old woman named Bernice entered a liquor store with a 15 year old youth named Robert. The clerk could watch and hear all interactions between the two of them. Bernice asked Robert, "what kind of wine should we get?" Robert responded, "Merlot." Bernice retorted to Robert, "I'm more in the mood for white wine tonight, how about you?" Robert answered back, "You know I like red better but it's up to you." Bernice picked up the Merlot and proceeded to the register. Robert opened his wallet and handed Bernice a $20 bill. The clerk didn't know what to do so he asked for ID. Bernice handed him her ID and smiled. The clerk then asked for Robert's ID. Since Robert was 15 years old, he didn't have one. Bernice responded, "He doesn't need an ID, I'm the one buying the wine. Just take the money and give me my wine." If the clerk takes the money and let's Bernice and Robert leave with the wine, he will likely engage in illegal activity and risks lossing his license.

True

False

QUESTION 3: A habitual drunkard named John was visibly intoxicated and continued to get served at the Mead Hall. When John ran out of money and insulted a woman, the bartender threw him out. He got into his car and drove off the road and into a creek, subsequently drowning. The widow decided to sue Mead Hall under the dram shop laws. The widow may in fact be successful if she lives in which states?

Ohio

Mississippi

Colorado

South Carolina

Texas

Maryland

QUESTION 4: A business cannot purchase liquor liability insurance to cover dram shop liability.

True

False

QUESTION 5: When a bouncer is checking ID, they must check that there is no tampering or altercation; check that the photo matches the patron, hair, eyes, height, weight, and age. However, the bouncer may NOT query the would be patrons about their ID.

True

False

QUESTION 6: In a majority of states, dram shop laws are designed to protect innocent third parties and not the drunkard.

True

False

QUESTION 7: A bar cannot successfully defend themselves in court with the claim that the underage patron garnished an authentic looking identification card with a photograph apparently issued by a government entity and the bar had implemented a written policy requiring an ID.

True

False

QUESTION 8: There are no exceptions to state laws which allow for students under 21 years old to taste alcohol for academic purposes.

True

False

QUESTION 9: If a store sells alcohol to a known alcoholic or as they used to say in the old days, a habitual drunkard, the store risks losing its liquor license and may be liable for injuries caused by such a person.

True

False

QUESTION 10: Laws takes into consideration that alcohol effects differ greatly from person to person.

True

False

Reference no: EM131160934

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