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Smart Serve Practice Test · Question

A licensee can face penalties, including fines or suspension of their liquor licence, if their staff serves alcohol to an intoxicated person. This is an example of:

Vicarious liability means that the licensee (employer) is held responsible for the actions of their employees (servers) in the course of their employment. If a

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Question: A licensee can face penalties, including fines or suspension of their liquor licence, if their staff serves alcohol to an intoxicated person. This is an example of:

Answer options: ✅ Vicarious liability.

  • Criminal negligence.
  • Strict liability.
  • Contributory negligence.

Correct answer: Vicarious liability.

Explanation: Vicarious liability means that the licensee (employer) is held responsible for the actions of their employees (servers) in the course of their employment. If a server illegally serves an intoxicated person, the licensee can be held liable. Criminal negligence (Option B) requires a higher degree of fault, and strict liability (Option C) means guilt without fault, which isn't always the case here as due diligence can be a defense. Contributory negligence (Option D) relates to a plaintiff's own contribution to injury.

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