During a busy service, a new employee, not yet Smart Serve certified, mistakenly serves alcohol to a visibly intoxicated customer. The manager is aware of the situation but is too preoccupied to intervene immediately. Who, beyond the intoxicated customer, holds legal liability in this scenario under Ontario law?

Question: During a busy service, a new employee, not yet Smart Serve certified, mistakenly serves alcohol to a visibly intoxicated customer. The manager is aware of the situation but is too preoccupied to intervene immediately. Who, beyond the intoxicated customer, holds legal liability in this scenario under Ontario law?

Answer options:

• Only the new employee, as they committed the act of serving. ✅ Both the new employee and the licensed establishment (licensee).
• Only the licensed establishment, under the principle of vicarious liability.
• The manager, for failing to adequately supervise the new employee.

Correct answer: Both the new employee and the licensed establishment (licensee).

Explanation: Under the LLCA, both the individual server who provides alcohol to an intoxicated person and the licensed establishment (the licensee) itself can be held legally liable. The employee directly committed the illegal act, and the licensee is responsible for ensuring all staff are properly trained and adhere to responsible service guidelines. While the manager also holds responsibility, the primary direct liabilities extend to the server and the establishment.