Texas Alcoholic Beverage Commission (TABC) Practice Exam

True or False: Establishments can be held liable in civil court when an employee sells/serves/provides alcohol to an obviously intoxicated person who causes injury or damage.

1. True

2. False

3. Only if the customer was underage

4. Only if it happens during happy hour

The correct answer is: True

Establishments can indeed be held liable in civil court for serving alcohol to an obviously intoxicated person. This principle is rooted in the concept of "dram shop" liability, which holds that bars, restaurants, or similar establishments may be responsible for the actions of their patrons after serving them alcohol in a responsible manner. If a patron becomes intoxicated on the premises and subsequently injures themselves or others, the establishment may be found negligent if it can be demonstrated that they continued to serve alcohol despite obvious signs of intoxication. This liability is intended to encourage responsible serving practices and ensure that establishments take measures to prevent over-serving patrons who may pose a danger to themselves or others. The incorrect options do not encompass the broader legal responsibilities that establishments face regarding the service of alcohol. For example, the stipulation about customers being underage addresses a different aspect of alcohol service laws, while the mention of happy hour implies a limited timeframe which does not affect the overarching responsibility to serve alcohol responsibly, regardless of the time or day.