Step One

Review the course content by clicking through the modules associated with this course, the links to these modules are on the top of this page in the header section.

You will:

• Know how to maintain profits by discovering strategies to benefit from the market segments that are tending towards reduced alcohol consumption and more health-conscious alternatives.
• Learn the strategies that industry leaders are using to keep their alcohol service responsible and safe while maintaining or increasing profits.
• Know how you can bolster public and customer relations with the majority of people who applaud efforts to reduce impaired driving.
• Learn about the Duty of Care and your role in ensuring that customers do not harm themselves or others by unreasonable or inappropriate alcohol sales practices or procedures.
• Understand the effects of alcohol and recognize the signs of over-consumption.
• Know your legal responsibilities in the service of alcohol.
• Understand new approaches to alcohol sales and service in relation to the changing consumption trends and regulations.

Step Two

When you are confident that you are ready to take the test, please proceed to the registration page to register and make your payment.

Step Three

When you are confident that you are ready to take the test, please proceed to the registration page to register. When you have registered and completed your profile you will be asked to submit a test code that may have been provided to your buy your employer or you will have to purchase one in order to access the on-line test. If you have any questions about this process please contact HNL at 1-800-563-0700 or 709-722-2000.

Step Four

When you have completed your test and the site administrator has verified your payment you will receive an email with your test score. Upon successful completion of the test you will be emailed a certificate to recognize your completion of this program.

Duty of Care

Duty of care is the responsibility you have for your customers’ safety. Ask yourself:

• Did I know or should I have known that a person was intoxicated or becoming intoxicated?
• What steps did I take to prevent a person from increasing or maintaining his/her level of intoxication?
• What steps did I take to protect a person once he/she was or apparently was intoxicated?

Prevention – Your First Duty of Care

To exercise reasonable care to ensure that persons are not served alcohol, such that they become a danger to themselves or others.

Preventing Intoxication Means:

• Monitoring a customer’s actions and behaviours.
• Being aware of factors that affect intoxication.
• Being prepared to refuse service to a customer who is at risk of becoming impaired.
• Eliminating inducement (attempt to persuade people to purchase and consume more liquor than they normally would).

Protection – Your Second Duty of Care

To take reasonable steps to protect persons who have become intoxicated: to ensure that they do not harm themselves or others.

This may include:

• Arranging for an impaired customer(s) to be placed in the care of a responsible (and sober) person
• Arranging rides.

If a customer leaves your establishment and is in an accident or injured, you and your establishment can be held responsible.

Chain of Responsibility

Was the intoxicated person placed in the care of someone else? An intoxicated driver may have been ‘picked up’ by the police or placed in a taxi or put into the care of a designated driver.

Any actions the intoxicated person takes after this type of intervention could be judged to be so remote from your care and control that you will not be held liable. However, the fact that he/she managed to drive a car for two hours or 100 miles before an accident may not remove you from subsequent liability or damages. Nor does the mere fact that “they drank somewhere else after leaving us” remove you from the ‘chain of responsibility’.

Negligence

“He/she was negligent so I can’t be held responsible!” It doesn’t work that way. In fact, because he/she was negligent, you may be held responsible: if you did not demonstrate your duty of care. For example: An intoxicated driver loses control of his car resulting in an accident involving injury.

1. Was the driver negligent? Yes. Failure to control the car.
2. Was alcohol served by you a factor? Yes. Contributed to his negligence in failure to control his car.
3. Were you negligent in the service of alcohol? If you had a duty of care and breached that duty, you could be found negligent.
4. Could you end up paying damages? Yes.
5. How much? More than you may realize.

Joint and Several Liability

Courts will determine different amounts of liability. What percentage of blame is given to each party is for the courts to determine, based upon the facts of the case, and the chain of responsibility.

Case Examples

The cases below contain discussion of an alcohol provider’s liability under common law.

1. Jordon House Hotel Ltd. v. Menow and Hosberger (1973)

The Supreme Court of Canada recognized that a tavern owner had a duty to protect intoxicated persons from injuries that they might suffer on or off the premises.
Menow (the defendant) drank to visible intoxication and was ejected from the Jordon House Hotel. As he walked along the highway, he was hit by a car. Menow successfully sued the driver and the hotel. Menow, the driver and the hotel were each held one-third at fault.

Cases following this landmark decision have placed a duty of care on establishments. Establishments must be sure people are not harmed when they leave an establishment in an intoxicated state.

2. Hague et al v. Billings et al (1989)

The issue was whether either of the defendant taverns would be liable to the plaintiff for damages that happened as a result of an accident caused by an intoxicated driver.

Billings (the defendant) killed J. Hague and seriously injured her daughter. Billings had been served at two taverns before the accident. The staff at the Oasis Tavern refused service after one drink when they agreed that he was intoxicated. The staff at the Ship and Shore Hotel served several drinks to the Billings party.

Action against the Oasis Tavern was dismissed. Billings and the Ship and Shore were found equally responsible. The Hague family was awarded damages of $1,890,000.

3. Whitlow v. The Cross Eyed Bear Tavern (1995)

Mr. Whitlow consumed alcohol at a Legion. He left and shortly after entered the tavern where he consumed more alcohol. While there, he went to use the restroom located down a stairwell. Shortly thereafter, he was found unconscious at the bottom of the stairs. No one saw him descend the stairs. No one saw him fall. He died shortly thereafter. The staircase had a protruding bulkhead. There was a sign on the bulkhead “(Watch your Step/Head!!!)”.

The court found that the bulkhead was one of the causes of Mr. Whitlow’s fall. Mr. Whitlow was found to be extremely intoxicated (18-21 drinks) from the drinks served in either the tavern or the Legion. The warning sign had a reduced effect due to his intoxication. The tavern failed to adequately monitor his consumption of alcohol.

The court found:

• Mr. Whitlow 80% at fault for his own “damages”.
• The Tavern 15% liable.
• The Legion 5% liable.

Condition of the premises is unsafe for use of customers when it is foreseeable that customers may be intoxicated. It is interesting to note that the Legion’s liability was based on “foreseeable danger” to an intoxicated person and a duty to take some active steps to protect them.

4. Jacobson v. Kinsmen Club of Nanaimo (1976)

At a “Beer Garden” held in a curling rink by the Kinsmen Club attended by approximately 2000 people, a patron decided to “entertain” the crowd. He climbed to an I-beam supporting the roof and dropped his pants while hanging from the beam. A little while later he and a friend repeated the performance. Nothing untoward happened and the crowd seemed to enjoy the “show”.

Another guest then attempted the same act, unfortunately not as successfully. He fell 30 feet and landed on another guest who was injured. The court made some interesting comments. It stated that, had the first guest fallen, the court would not have held the Kinsmen Club liable. “Who could foresee that someone would attempt this activity, and how could they have effectively intervened.” However, after the first event it was foreseeable, and what did the Club do to prevent a reoccurrence? Nothing.

After the second occurrence, the event was not only foreseeable, it was an ongoing activity. By this time, the Kinsmen should have intervened, warned the patrons that this activity would not be tolerated, and even posted members by the I-beam pillars to prevent anyone climbing. The Kinsmen did none of these things and by failing to take more effective measures to prevent a recurrence, the Club breached its duty and was found to be liable.

Implications of These Cases

• It is illegal to serve alcohol to anyone who is intoxicated.
• The licensee has an obligation to ensure that the physical condition of the premises does not pose an undue risk of harm to those who enter.

You are responsible for your customers, regardless of their level of intoxication.

Reducing Liability

The following suggestions help reduce the risk of breaking the law and being found liable.

You need to:

• Ensure you do not serve alcohol to intoxicated patrons.
• Ask for ID from anyone who looks under 25 and do not serve minors (under 19 in Newfoundland and Labrador).
• Watch for and be able to recognize intoxication.
• Make sure customers do not hurt themselves or others.
• Take reasonable steps to reduce and contain your risk (duty of care).
• Act quickly to control disturbances such as fights or groups talking too loudly and annoying other customers.
• Refuse service and remove customers who are involved in illegal activities (such as drug dealing) or who are creating disturbances.
• Make sure everyone on staff works together to stop aggressive or illegal behaviour before it causes a problem.
• Use only reasonable amounts of force to control disturbances.
• Consider that it may be preferable, in many cases, to have police attend to the removal of persons.

It may be tempting to think that the odds are in your favour, that lawsuits will only be against other people. In these changing times, however, all servers, bartenders, managers and owners are at higher risk.

You can reduce liability by:

• Having clear policies and procedures that are understood, followed and are consistent with what is permitted by rules, regulations and laws.
• Documenting your actions and communicating effectively with other staff.
• Maintaining a safe environment.

The Importance of Documentation

Proper documentation and communication helps everyone understand what is going on and allows them to support each other’s actions. These steps make it easier to prove what actions were taken if a problem does arise. A logbook provides a physical record, in which any staff should be able to verify actions taken. Good documentation can also discourage people from bringing a lawsuit against you and your establishment. Discuss this with your manager or supervisor.

Incident Logbook

You should fill out an incident logbook entry whenever someone is:

• Refused entry
• Refused service
• Cut off
• Asked to leave the premises
• Hurt on the premises

These are examples only. There will be other incidents you and your manager may feel should be documented.

It is important to record incidents with customers in a notebook or logbook. Record the events while they are fresh in your mind; as soon as possible after the incident has taken place.

Include details such as: time, place, date, nature of incident, description of parties involved, action taken, witnesses, whether police were called, and any other pertinent information.

Retain all sales slips pertaining to the incident.

Filling out log entries is one way of protecting yourself. Make a note whenever you think and issue could arise regarding your actions, or those of your patrons.

Factors that Affect a Person’s BAC

Amount:

The more alcohol consumed in a specific period of time, the higher a person’s BAC will be (shooters, drinking games, etc. will heighten a person’s BAC).

Rate:

Alcohol is absorbed very quickly into the body, but it takes the body approximately one hour per standard drink to break alcohol down. The body starts to break down alcohol the moment it enters a person’s system, but it will not break down alcohol any faster just because there is more of it.

Size and Body Build:

The larger and more muscular people are, the less effect alcohol will have on their BAC. Fat cells do not absorb alcohol very well, so try to judge a person’s size by their lean body mass.

Gender and Age:

Because of size and build, women are often more susceptible to alcohol. Because of biological differences, a woman will also become impaired quicker than a man the same size who drinks the same amount of alcohol.

Food:

The effect of food can be deceiving. Food will not prevent the absorption of alcohol, but it will slow it down. The BAC will rise more slowly if a customer consumes food with alcohol. Customers may drink more than they intended because they do not feel the effects as quickly.

Other things may also affect a person’s behaviour and impairment when he/she consumes alcohol. These include:

Other Substances:

Prescription medication, over-the-counter medication, and illegal drugs can enhance the effect of alcohol. If you notice customers taking medication of any sort, watch them carefully. Also watch for signs of drug-related impairment such as a customer who is easily distracted or who has difficulty concentrating. If you suspect illegal drug use, you need to take further action.

Experience:

People often learn to disguise the more apparent signs of intoxication. However, their central nervous system is still affected by the alcohol they have consumed which, therefore, affects reaction time and judgment. A customer who can disguise intoxication in this way should be watched more closely because he/she can reach dangerous levels of intoxication with little warning.

Tolerance:

The way the body adapts to the repeated presence of a drug, meaning that higher doses are needed to maintain the same effect.

Setting or Atmosphere:

Many things including the lighting, décor, music, type of clientele, and seating pattern, will affect a customer’s behaviour and consumption of alcohol. A person drinking alone may consume more alcohol for something to do, whereas people drinking with friends may drink less because they are involved in conversation. On the other hand, friends may encourage more drinking by peer pressure urging their companions to drink more or play drinking games.

Fetal Alcohol Syndrome (FAS)

Fetal Alcohol Syndrome is a birth defect caused when a mother consumes alcohol while pregnant. To raise public awareness of this issue, each licensed establishment has been provided with FAS warning signs and labels.

Servers, of course, care about all their customers, but should pay special attention to pregnant guests. The server may wish to offer non-alcoholic beverages as an alternative for the guest.

Visual Signs of Intoxication

Loss of Inhibitions

• Being overly friendly
• Loud speech
• Change in speech
  • Volume: voice may go from low to high with no reason to suggest that a change is necessary?
  • Rate: changes in rate of speaking

Impaired Judgment

• Complains about the strength of drink
• Changing consumption rate
• Ordering doubles
• Argumentative
• Careless with money
• Irrational statements

Impaired Reaction

• Lighting more than one cigarette at a time
• Eyes blood shot, lack of eye focus
• Decreased alertness or loss of train of thought
• Easily muddled
• Slurred speech
• Sweating for no apparent reason
• Slow, shallow, or weak breathing

Loss of Fine and Gross Motor Coordination

• Unable to pick up change
• Fumbling with cigarettes
• Difficulty removing cards from wallet
• Spilling drink
• Stumbling, has trouble moving around objects in path
• Unable to sit upright, ‘nodding off’ then jerking upright

If you observe signs of intoxication, you should adjust or stop your service.

Common Questions

1. Does it matter whether the stomach is full or empty?
Yes. A full stomach can slow the rate of absorption of alcohol into the bloodstream.

2. Is the size and body build of a person a factor?
Yes. Normally a heavier person will not become intoxicated as rapidly as a lighter person even though they might have consumed the same amount of alcohol.

3. Can servers offer shooters to customers from a server tray?
No. A licensee may not allow a server to carry alcoholic beverages in licensed premises before receiving orders for those beverages.

Alcohol Service in Changing Times

The business of selling alcohol has changed in the past few years. You see it in your bookkeeping, and in the volume and types of alcohol sold. You hear it in your customer’s comments. They talk about health issues, impaired driving and have made changes in their beverage choices. Different establishments in different locations will feel it in varying ways, but the net result is the same. The times are changing, and the successful operator will adapt to, and take advantage of, the changes.

Consider the following changes:

• Profits are dropping due to a trend of reduced alcohol consumption.
• The public is focusing on alcohol-related problems, particularly drinking and driving.
• Young people are more aware of alcohol-related problems and taking action to be more responsible (Safe Grads, Designated Driver Programs, etc.).
• A more health and weight-conscious public is changing eating and drinking preferences.
• Establishments and servers are increasingly being held responsible for injuries related to intoxication.
• Liquor Laws and regulations have been amended in response to the changing environment.
• Costs are rising: taxes, overhead, insurance.
• Which ones have affected your business the most? How have you taken steps to address them?

Strategies for Business Success

One of the managers consulted in the development of this program put it this way… “You just can’t sit back any longer and expect alcohol sales to automatically keep your bottom line in good shape”. Even in a bar where alcohol sales are now 90% of the revenue, there is a need to be in tune with the new trends, and to be innovative in marketing. The good news is that industry people are finding a large number of profit-generating strategies that are in harmony with the goals of avoiding over service, intoxication and the risks of impaired driving and liability.

This section looks at a number of these strategies. Managers are using new approaches to attract customers and to increase profits while achieving responsible service. Take a few moments to think about what you are currently doing, as well as what could be done in the future: Promote lower alcohol products.

• Some establishments carry brands of wines, spirits, and beers of lower alcohol content.
• Make the drinks appealing by introducing a touch of the exotic to both their names and ingredients.
• Promote alcohol-free beverages such as non-alcoholic beers. Promote food alternatives.
• Have staff suggestively sell food items, or have a food menu visible to guests. Food slows the absorption of alcohol into the bloodstream. It thereby produces a lower ‘peak’ amount of alcohol in the blood than if the guest were to drink on an empty stomach. Food must be attractive, well-priced and well-marketed.
• Using new strategies to increase sales of specific products and serving sizes with a higher per unit profit (Up-selling to Premiums. Train your staff to suggest and sell).
• Replace bar or ‘rail’ brands with brand names or ‘call’ liquors.
• Offer more expensive wines.
• Dry and imported beers are becoming more popular.
• Carry premium and select brands of spirits.
• Upgrade standard drinks such as a Bloody Mary by going to a larger presentation or using an interesting garnish. The presentation affords the customer a higher perceived value for the product. You charge more, increasing the margin of profit.
• Adjust pricing policies. Review your pricing and determine necessary adjustments to maintain profitability.
• Sell better wines by the glass. Your margin of profit will increase for each glass sold.
• Publicize a safety and/or health conscious point of view. This can be done by displaying policies about your commitment to responsible alcohol service. Include this on your tent cards, menus and billing systems.
• Promote special events that provide interest and entertainment for certain customer groups.
• Get staff input and encourage them to become involved in planning, as well as, execution.
• Develop theme nights, celebrity nights, or invite ‘celebrity servers’ with a special drink named after them.
• Dance, trivia, dress to look like, and other contests (but not drinking contests).
• Host fashion shows or work with a local charity to stage an event that exhibits your social and charitable support.
• Darts, shuffleboard, pool and video games are popular. Introduce backgammon, crib, scrabble or other games that may catch the imagination of your market.
• Select new beverages and promote taste. Provide a variety in products and stay up to date on consumer likes and trends.
• Organize a wine-tasting event for new products and have a knowledgeable wine expert discuss the products.
• Imported beer tastings can be accompanied with food tastings to suggestively sell your food menu as well as the new beer.
• Have a visible control point at the main entrance. It sends the message ‘This establishment cares who its patrons are and what they do’.
• Promote a professional atmosphere with courteous, efficient and knowledgeable staff and managers.
• Publicize a Designated Driver or Safe Transportation plan. Contact the Newfoundland and Labrador Liquor Corporation for more information about the Designated Driver Program for operators. Post the signage throughout your operation and ensure your staff knows their role in promoting it.
• Build these strategies into the orientation and training sessions for your management and service teams.
• Develop in-house policies and plans using the tools at the back of this manual.
• Recognize and thank staff members who demonstrate their duty of care and reduce the risk of liability.
• Share the details of the situation with other staff, who can learn from their coworkers.