Smart Serve overview

Smart Serve: Liability and penalties

Civil liability under section 52 of the LLCA, fines and jail for offences, AGCO monetary penalties and the wider legal risk of over-serving.

  • 18 questions
  • Topic drill
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Liability and penalties · Question 1Score 0/0

Can an individual convicted of being intoxicated in a public place be sent to jail under the LLCA?

Study reference: Ontario liquor law and AGCO guidance (Oct 2026), Ch. 8 Liability and penalties — LLCA ss. 52, 67 to 69; AGCO Liability information sheet; AGCO Schedule of monetary penalties

All 18 questions in this test

Every question and its answer choices. The correct answers and explanations appear when you take the test above.

  1. Can an individual convicted of being intoxicated in a public place be sent to jail under the LLCA?

    1. No, they are not liable to imprisonment
    2. Yes, for a mandatory 30 days on a first conviction
    3. Yes, for up to five years
    4. Yes, for up to one year
  2. CAMH notes that legal responsibility for harm after serving an intoxicated person can apply to whom?

    1. Businesses and people serving guests at home
    2. Only bars and restaurants holding a liquor licence
    3. Only the person who drank
    4. Only the LCBO
  3. Can a bar owner be held liable under section 52 for a sale made by one of the servers?

    1. Only if the owner was on shift
    2. No, only the patron who did the drinking is liable
    3. No, only the server is ever liable
    4. Yes, it covers sales by employees or agents
  4. A bar kept serving a visibly drunk patron, who then crashed into another car. Under section 52, who may claim compensation from the bar?

    1. The person injured in the crash
    2. Only the patron who was served
    3. Only the Government of Ontario
    4. No one; the driver alone is liable
  5. Which consequences does AGCO list for licensees who serve patrons to intoxication?

    1. Only an order to retrain all staff
    2. Penalties, fines, jail, or licence suspension
    3. Only the loss of the patio area
    4. A written warning on file and nothing more serious
  6. What is the maximum fine for a corporation convicted of a general LLCA offence?

    1. $50,000
    2. $250,000
    3. $1,000,000
    4. $100,000
  7. What is the maximum AGCO monetary penalty for selling liquor to someone who appears to be under 19?

    1. Up to $50,000
    2. Up to $2,000
    3. Up to $15,000
    4. Up to $100,000
  8. Section 52 liability applies when liquor is sold to someone whose condition means drinking would do what?

    1. Intoxicate them, or worsen it, so they risk causing harm
    2. Make them late for work the next day
    3. Lead them to spend more money at the bar than they had planned
    4. Cause a hangover the following morning
  9. What is the maximum AGCO monetary penalty for not displaying the required Sandy's Law warning sign?

    1. Up to $2,000
    2. Up to $20,000
    3. Up to $50,000
    4. Up to $200
  10. Under AGCO's risk-based licensing, what may be added to a licence after incidents of non-compliance?

    1. Conditions to reduce the risk of repeat issues
    2. An exemption from routine inspections for one year
    3. A bonus extension of service hours
    4. Permission to serve 18-year-olds
  11. If an over-served patron dies in an accident while intoxicated, what legal action may be brought against the seller?

    1. An action under Part V of the Family Law Act
    2. No action is possible after a death
    3. A claim under the Highway Traffic Act only
    4. A complaint to the Ontario Ombudsman
  12. Besides LLCA penalties, what other risk does AGCO say licensees and staff face for conduct that causes harm?

    1. Civil liability
    2. A ban from all LCBO stores
    3. Loss of their driver's licence
    4. Automatic community service
  13. A corporation's director let staff keep serving minors. Can the director personally be guilty of an offence?

    1. No, only the servers can be charged
    2. No, only the corporation as a whole can be charged
    3. Yes, if they caused, authorized or permitted it
    4. Only if they poured the drinks
  14. Which question decides whether section 52 liability may apply to a sale?

    1. Whether the buyer left the server a tip
    2. Whether the buyer paid in cash or by card
    3. Whether more liquor would apparently make them dangerous
    4. Whether the buyer was a regular customer known to the staff
  15. What is the maximum fine for an individual convicted of a general LLCA offence (not sale to a minor)?

    1. $250,000
    2. $25,000
    3. $100,000
    4. $10,000
  16. According to AGCO, what is the best way for a licensee to avoid trouble with intoxicated patrons?

    1. Well-trained staff who know how to handle them
    2. Hiring extra door staff to remove patrons once they are drunk
    3. Closing earlier on weekends
    4. Lowering drink prices
  17. What is the maximum AGCO monetary penalty for serving someone who is or appears intoxicated?

    1. Up to $5,000
    2. Up to $50,000
    3. Up to $500,000
    4. Up to $500
  18. Besides a fine, what other penalty can an individual face for a general LLCA offence?

    1. A lifetime ban from all bars
    2. Up to ten years in jail
    3. Up to one year in jail
    4. Up to five years in jail

Liability and penalties: key rules to remember

Our summary of what the official handbook says on this topic, in our own words. Read it before or after the practice questions above, then check the original chapter. Read the official chapter ↗

Civil liability

  • Applies where a person, or their agent or employee, sells liquor to someone whose condition is such that drinking would apparently intoxicate them or increase their intoxication so they are in danger of injuring themselves or others or damaging others' property.
  • If that person dies by accident or suicide while so intoxicated: action under Part V of the Family Law Act lies against the seller.
  • If that person injures someone or damages property while so intoxicated: the injured party may recover compensation from the seller.

Liability: there's more to lose than your licence

  • Illegal to serve to intoxication, permit practices encouraging immoderate consumption, or serve someone who appears intoxicated.
  • Consequences: monetary penalty orders, fines, imprisonment, licence suspension or revocation; plus civil liability for harm.
  • Well-trained staff are the best way to avoid trouble; staff must take Board-approved training and renew it.

Offences and penalties

  • Offence to contravene the Act or regulations; directors/officers who caused, authorized, permitted or participated in a corporate offence are guilty too.
  • General penalties: corporation up to $250,000; individual up to $100,000 and/or up to 1 year jail.
  • No jail for public intoxication (s. 31 (1)) or unlawful place of consumption (s. 41 (1)).

Schedule of monetary penalties (effective December 5, 2025)

  • s. 32 sale to intoxicated person: up to $50,000.
  • s. 33 (1) sale to person under 19 / appearing under 19: up to $100,000.
  • s. 36 Sandy's Law sign: up to $2,000.
  • O. Reg. 746/21 s. 24 immoderate consumption: up to $6,000; s. 37 clean-up: up to $6,000; s. 43 (1): up to $15,000.

Karaoke tip sheet (licence conditions)

  • Risk-based licensing: conditions may be imposed based on incidents or non-compliance, or proactively.

Alcohol (laws)

  • Anyone who sells or gives alcohol, including hosts at home, can be held responsible for harm by an intoxicated person.

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