CSLB General Building (B) — All Questions

What is the primary purpose of the Texas Alcoholic Beverage Commission (TABC)?

• a.To set the retail price of alcoholic beverages statewide
• b.To regulate and supervise the alcoholic beverage industry in Texas and promote public safety✓
• c.To collect federal excise taxes on imported liquor
• d.To license restaurants for food safety inspections

The TABC is the state agency created to regulate every phase of the alcoholic beverage industry in Texas, from manufacturing to retail sale. Its core mission is protecting public safety and welfare, not price-setting or food inspection. It enforces the Texas Alcoholic Beverage Code.Texas Alcoholic Beverage Code

The body of state law that governs the sale and service of alcohol in Texas is known as the:

• a.Texas Penal Beverage Statute
• b.Federal Liquor Control Act
• c.Texas Alcoholic Beverage Code✓
• d.Texas Retail Commerce Code

The Texas Alcoholic Beverage Code is the comprehensive set of state statutes governing manufacture, distribution, sale, and service of alcohol. TABC is the agency that administers and enforces this Code. Seller-servers are legally responsible for following it.Texas Alcoholic Beverage Code

A seller-server certification issued after completing a TABC-approved training program is valid for how long?

• a.Two years✓
• b.Six months
• c.Ten years
• d.For life

A TABC seller-server certificate is valid for two years from the date of issuance. After it expires the employee must retake an approved course to stay certified. Keeping certification current is part of protecting the safe-harbor defense.Texas Alcoholic Beverage Code

Under the Texas Dram Shop law, a business or its employee can be held civilly liable when they serve alcohol to a person who:

• a.Orders more than two drinks in one visit
• b.Was obviously intoxicated to the point of presenting a clear danger, and that person later causes harm✓
• c.Is a first-time customer without a membership
• d.Pays with cash instead of a card

The Texas Dram Shop Act allows a business and its servers to be sued when they serve someone who was obviously intoxicated and presented a clear danger to themselves or others, and that person later injures someone. Liability turns on obvious intoxication, not on drink count or payment method. This is why recognizing intoxication is critical.Texas Dram Shop Act

The legal 'safe harbor' defense can protect an employer from Dram Shop liability only if all of the following are true EXCEPT:

• a.The employer required its employees to attend a TABC-approved seller-server training program
• b.The employee who served was actually certified
• c.The employer guaranteed no customer would ever become intoxicated on the premises✓
• d.The employer did not directly or indirectly encourage the employee to violate the law

Safe harbor requires that the employer required approved training, the employee was certified, and the employer did not encourage breaking the law. No employer can guarantee that no patron ever becomes intoxicated, so that is not a safe-harbor element. Safe harbor shifts liability away from the owner when these conditions are met.Texas Dram Shop Act

A seller-server sells alcohol to a customer who is obviously intoxicated. Which statement about liability is correct?

• a.The individual seller-server can be personally charged, separate from any action against the business's license✓
• b.Only the business, never the employee, can face consequences
• c.No one is liable unless the customer files a complaint
• d.Liability applies only if the customer drives afterward

In Texas the individual employee who serves an intoxicated person can be personally charged with a criminal offense, independent of any administrative action against the licensee. Both the person and the business face separate consequences. This is why the server, not just the owner, must refuse improper service.Texas Alcoholic Beverage Code

It is illegal in Texas for a seller-server to sell an alcoholic beverage to which of the following?

• a.A person who is obviously intoxicated
• b.A minor under 21
• c.A person the seller knows will illegally give it to a minor
• d.All of the above✓

The Code prohibits selling to an obviously intoxicated person, to a minor under 21, and to an adult the seller knows will pass it to a minor. Each of these is a separate offense a seller-server can commit. Knowing all prohibited sales is central to the job.Texas Alcoholic Beverage Code

Selling or serving an alcoholic beverage to a minor in Texas is generally classified as what level of criminal offense for the seller?

• a.A federal felony
• b.A Class A misdemeanor✓
• c.A non-criminal parking-style ticket
• d.No offense at all

Selling alcohol to a minor is typically a Class A misdemeanor in Texas, which can carry a substantial fine and possible jail time. It is a criminal charge against the individual, not merely a citation. The business also faces administrative penalties against its permit.Texas Alcoholic Beverage Code

Which of the following is an ADMINISTRATIVE (rather than criminal) consequence of illegal alcohol sales?

• a.Jail time for the server
• b.A personal criminal record for the bartender
• c.Suspension or cancellation of the business's TABC permit✓
• d.A public-intoxication arrest of the customer

Administrative penalties are actions TABC takes against the license or permit itself, such as fines, suspension, or cancellation. Criminal penalties, like jail or a personal record, apply to individuals through the courts. A single incident can trigger both tracks at once.Texas Alcoholic Beverage Code

A customer becomes loud and disoriented, then walks outside onto a public sidewalk where they can barely stand. In Texas this customer may be subject to arrest for:

• a.Public intoxication, if they may endanger themselves or others✓
• b.Nothing, because intoxication is never a crime
• c.Trespassing only
• d.A federal alcohol violation

Public intoxication applies when a person is intoxicated in a public place to the degree they may endanger themselves or another person. It is the customer's own offense, but it also signals the server likely over-served. Documenting the situation protects the establishment.Texas Alcoholic Beverage Code

During legal hours, a seller-server may still refuse to sell alcohol to a customer. Which statement is true?

• a.A seller must sell to anyone of legal age who asks
• b.A seller-server always has the right to refuse service to protect safety and stay within the law✓
• c.Refusing service is itself illegal
• d.Only a manager may ever refuse a sale

A seller-server always retains the right and the duty to refuse a sale that would break the law or endanger someone, such as service to an intoxicated or underage person. No law forces a server to complete a sale. Refusal is a core tool for legal compliance.Texas Alcoholic Beverage Code

Which of the following is a legitimate reason to refuse a legal-age, sober adult... actually to refuse ANY sale under the Code?

• a.The customer appears intoxicated
• b.The customer cannot show valid proof they are 21
• c.The seller believes the alcohol will be given to a minor
• d.Any of the above✓

A seller-server should refuse when the customer is intoxicated, cannot prove they are 21, or is likely to hand the alcohol to a minor. Any single one of these is enough to justify and require refusal. Refusing in these cases is exactly what the law expects.Texas Alcoholic Beverage Code

A bartender knowingly serves a visibly drunk regular 'because he's a good tipper.' Later that patron injures someone driving home. Which best describes the bartender's exposure?

• a.None, because tips are legal
• b.Only the owner can be sued
• c.The bartender may face both criminal charges for illegal service and civil Dram Shop liability✓
• d.The bartender is protected because the patron chose to drive

Knowingly serving an obviously intoxicated patron exposes the bartender to a criminal charge for illegal service and to civil liability under the Dram Shop Act if that patron then harms someone. The patron's own choice to drive does not erase the server's responsibility. Good tips are never a defense.Texas Alcoholic Beverage Code

The TABC has the authority to do which of the following to a business that repeatedly violates the Code?

• a.Fine, suspend, or cancel its permit✓
• b.Seize the owner's personal home
• c.Deport the owner
• d.Nothing; only local police can act

TABC's administrative authority includes fining a permit holder and suspending or canceling the permit for violations. These are civil administrative remedies aimed at the license. Serious or repeated violations can end a business's ability to sell alcohol.Texas Alcoholic Beverage Code

A patron asks to buy one more beer at 12:15 a.m. on a Tuesday at a bar that has standard hours and no late-hours permit. What should the seller-server do?

• a.Serve it quickly before anyone notices
• b.Refuse, because the legal hours of sale have ended✓
• c.Serve it only if the patron drinks it in the parking lot
• d.Serve a double instead to save time

Standard on-premise sales on weeknights end at midnight, so a 12:15 a.m. sale would violate the hours-of-sale rules unless the business holds a late-hours permit. The seller must refuse the late sale. Selling outside legal hours is a Code violation for both the server and the permit holder.Texas Alcoholic Beverage Code

Which statement about the seller-server's legal duty is MOST accurate?

• a.Responsibility ends the moment the drink leaves the bar
• b.Only law enforcement is responsible for intoxicated patrons
• c.The seller-server shares legal responsibility for preventing illegal sales and over-service✓
• d.The customer alone bears all legal responsibility

Texas law places direct responsibility on the seller-server to prevent illegal sales, including to minors and intoxicated patrons. That responsibility is shared, not transferred entirely to police or the customer. Understanding this duty is the foundation of the certification.Texas Alcoholic Beverage Code

A guest is drinking heavily and mentions they are driving home. The server keeps serving. The Dram Shop Act is most concerned with which factor at the time of service?

• a.Whether the guest was already obviously intoxicated when served✓
• b.Whether the guest ordered an expensive drink
• c.Whether the guest paid a cover charge
• d.Whether the bar was crowded

Dram Shop liability hinges on whether the person was obviously intoxicated and a clear danger at the moment they were served. The guest's plan to drive raises the stakes but the legal test is the obvious intoxication at service. That is why servers must watch for and act on signs of intoxication.Texas Alcoholic Beverage Code

TABC certification benefits a seller-server by:

• a.Teaching how to recognize intoxication and check IDs
• b.Helping the employer qualify for the safe-harbor defense
• c.Reducing the server's risk of criminal and civil liability
• d.All of the above✓

Certification trains servers to spot intoxication and fake IDs, supports the employer's safe-harbor protection, and lowers the server's own legal exposure. All of these are real benefits of being certified. This is why Texas encourages seller-server training.Texas Alcoholic Beverage Code

If a business does NOT require its employees to be trained and certified, how does that affect the safe-harbor defense after an over-service lawsuit?

• a.It strengthens the defense
• b.It generally defeats the safe-harbor defense, leaving the employer exposed✓
• c.It has no effect at all
• d.It automatically wins the case

Requiring approved training and having certified employees are core conditions of safe harbor. If the employer never required training, it cannot claim the defense and remains exposed to Dram Shop liability. This is a key business reason to certify every server.Texas Alcoholic Beverage Code

A seller-server notices a coworker regularly serving obviously drunk patrons. What is the best course of action?

• a.Ignore it, since it is not their station
• b.Join in to avoid conflict
• c.Report the concern to management so the illegal over-service can be stopped✓
• d.Wait until someone gets hurt

Over-service endangers the public and exposes the whole business to liability, so the concern should be reported to management promptly. Waiting for harm to occur only increases legal and safety risk. Protecting patrons is a shared responsibility among all staff.Texas Alcoholic Beverage Code

Which of the following most accurately describes 'over-service'?

• a.Continuing to serve alcohol to a patron who is or is becoming intoxicated✓
• b.Serving food alongside drinks
• c.Serving a patron more than one type of beverage
• d.Serving drinks faster than the kitchen serves food

Over-service means providing additional alcohol to someone who is already intoxicated or clearly heading there. It is both a safety hazard and a legal violation under the Code. Preventing over-service is a central skill for seller-servers.Texas Alcoholic Beverage Code

Under the Dram Shop Act, who can potentially be held liable for injuries caused by an over-served, intoxicated patron?

• a.Only the individual server
• b.Only the business permit holder
• c.Neither, if the patron drove
• d.Both the individual server and the permitted business✓

Both the individual server and the permitted business can be named in a Dram Shop suit for injuries caused by an over-served patron. Liability is not limited to just one party. Certification and safe-harbor compliance are the main defenses.Texas Dram Shop Act

A first-time customer politely asks why you will not sell them a sixth shot in 30 minutes. The most legally sound explanation is:

• a.'Company policy says five drinks maximum, sorry.'
• b.'I can't legally keep serving someone who is showing signs of intoxication.'✓
• c.'The manager doesn't like you.'
• d.'We're out of that liquor.'

The lawful basis for refusal is that continuing to serve an intoxicated person violates the Code and creates liability. Framing it around the law keeps the interaction professional and defensible. Servers should refuse calmly and honestly rather than inventing excuses.Texas Alcoholic Beverage Code

Criminal and administrative penalties for illegal alcohol sales in Texas are:

• a.The same single penalty
• b.Only applied to customers
• c.Two separate tracks that can both apply to one incident✓
• d.Never enforced in practice

Criminal penalties target individuals through the courts while administrative penalties target the permit through TABC, and both can arise from a single illegal sale. They operate independently of each other. A server can be prosecuted while the business is separately fined or suspended.Texas Alcoholic Beverage Code

A seller-server's best overall protection against personal liability is to:

• a.Consistently follow the law: check IDs, refuse minors and intoxicated patrons, and stop over-service✓
• b.Keep no records at all
• c.Rely on customers to police themselves
• d.Serve quickly to reduce time with each guest

Following the law every time, including ID checks and proper refusals, is the surest protection for a seller-server. Consistent compliance reduces both criminal and civil exposure. Cutting corners for speed only increases risk.Texas Alcoholic Beverage Code

Which of the following would violate Texas hours-of-sale rules at a standard-permit on-premise bar?

• a.Serving a beer at 8:00 p.m. on Thursday
• b.Serving wine at 11:00 p.m. on Friday
• c.Serving a cocktail at 10:00 a.m. Saturday
• d.Serving a shot at 1:30 a.m. Wednesday with no late-hours permit✓

Weeknight on-premise sales end at midnight under standard hours, so serving at 1:30 a.m. Wednesday without a late-hours permit is a violation. The earlier-evening examples fall within legal hours. Sellers must know their establishment's permitted hours.Texas Alcoholic Beverage Code

If TABC investigators observe a bartender serving a visibly intoxicated undercover officer, the likely result is:

• a.A reward for good service
• b.Possible criminal charges against the bartender and administrative action against the permit✓
• c.Nothing, because it was an officer
• d.Only a verbal warning with no record

TABC uses compliance operations, and serving an obviously intoxicated person can lead to criminal charges for the server and administrative penalties against the permit. The fact that the patron was an undercover officer does not excuse the illegal service. Servers must apply the same standards to every guest.Texas Alcoholic Beverage Code

A manager tells a new server, 'Just serve everyone fast and don't worry about the law — that's my problem.' Why is this advice dangerous for the server?

• a.It isn't; the manager takes on all liability
• b.The server can never be charged individually
• c.Only the customer can be penalized
• d.The individual server can still face criminal charges and civil liability regardless of what a manager says✓

Under Texas law the seller-server is personally responsible for illegal sales and over-service, and a manager's instructions do not shield them. The server can be criminally charged and named in a Dram Shop suit even if told to ignore the law. Following the Code protects the server no matter what a supervisor says.Texas Alcoholic Beverage Code