Your licensed establishment is hosting a corporate event where the client has requested an 'open bar' policy, meaning all drinks are paid for by the corporation. A server notices a guest who is clearly over-intoxicated but is ordering drinks for a table of colleagues. The server approaches the guest directly to refuse service. What is the MOST likely implication of this refusal for the establishment?

Question: Your licensed establishment is hosting a corporate event where the client has requested an 'open bar' policy, meaning all drinks are paid for by the corporation. A server notices a guest who is clearly over-intoxicated but is ordering drinks for a table of colleagues. The server approaches the guest directly to refuse service. What is the MOST likely implication of this refusal for the establishment?

Answer options:

• The establishment could face a breach of contract claim from the corporate client for refusing service to their guest.
• The server is protected by the LLCA and AGCO regulations, so there are no negative implications for the establishment.
• The refusal could lead to a 'liquor licence suspension' if the AGCO determines the corporate event was poorly managed. ✅ The establishment is fulfilling its legal obligation under the LLCA, prioritizing safety over potential client dissatisfaction.

Correct answer: The establishment is fulfilling its legal obligation under the LLCA, prioritizing safety over potential client dissatisfaction.

Explanation: Regardless of payment method or client preferences, a licensed establishment and its staff are legally obligated under the LLCA to refuse service to intoxicated individuals. Prioritizing safety and adherence to the law (e.g., preventing over-service) takes precedence over contractual arrangements or potential client dissatisfaction. While a client might be unhappy, fulfilling this legal obligation protects the establishment from significant AGCO penalties and civil liability. A breach of contract claim is unlikely given the legal mandates around over-service. Suspension is a consequence of failing to refuse service, not for doing so.