Smart Serve overview

Smart Serve: Running licensed premises

Capacity, posting the licence, the Sandy's Law sign, buying liquor from the LCBO, illegal liquor, bring-your-own-wine, takeout and delivery with food, police access, drugs, noise and inspections.

  • 23 questions
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Running licensed premises · Question 1Score 0/0

An AGCO inspector arrives unannounced on a busy Friday. What does AGCO guidance say?

Study reference: Ontario liquor law and AGCO guidance (Oct 2026), Ch. 11 Licensed premises — O. Reg. 746/21 ss. 23, 35 to 46; O. Reg. 745/21 s. 24; Registrar's Interim Standards 1 and 6

All 23 questions in this test

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

  1. An AGCO inspector arrives unannounced on a busy Friday. What does AGCO guidance say?

    1. Ask them to come back with a booked appointment on a weekday
    2. Allow it; inspections can happen at any reasonable time
    3. Refuse until the owner arrives
    4. Only allow it before 5 p.m.
  2. In what language must the Sandy's Law sign appear?

    1. English, and French may be added
    2. Any language the owner chooses
    3. Both English and French are required
    4. French only
  3. With a bring-your-own-wine endorsement, to whom may the wine a patron brought be served?

    1. Staff at the end of the shift
    2. Any patron in the restaurant
    3. The patrons who brought it
    4. The next table, if invited
  4. What must a bar do with the Registrar's sign during a licence suspension?

    1. Post it in the staff room so employees know about it
    2. Share it on social media
    3. Keep it in the office
    4. Post it where it is visible from outside
  5. Which of these is illegal liquor if served at a licensed bar?

    1. A sealed store-bought bottle a patron takes home
    2. A personal bottle brought back from a trip abroad
    3. Beer bought from the LCBO under the licence
    4. Wine bought from the LCBO with the licence number
  6. What does the Sandy's Law sign warn about?

    1. Mixing alcohol with cannabis or medication
    2. Drinking alcohol during pregnancy
    3. Underage drinking
    4. Drinking and driving
  7. A server brings homemade wine for the kitchen to cook with and share after shifts. What does AGCO say?

    1. It is fine if it is under one litre
    2. The licensee must not permit it on the premises
    3. It is fine if it stays in the kitchen and is used in cooking
    4. It is fine as long as it is not sold
  8. Police officers on duty ask to check a bar's washrooms and storage areas. What must the licensee do?

    1. Give them access
    2. Ask for a warrant first
    3. Show only the dining room
    4. Ask them to return after closing
  9. Under O. Reg. 746/21, under whose supervision must liquor be sold and served?

    1. Any adult customer
    2. An employee authorized by the licensee
    3. A police officer
    4. An LCBO representative assigned to the premises
  10. Where must a licensed bar display the Sandy's Law sign?

    1. On the back of the menu
    2. In the liquor storage room
    3. In the staff washroom
    4. Where liquor is sold and served
  11. When counting people against a bar's licensed capacity, who must be included?

    1. Only patrons over 19
    2. Only seated patrons
    3. Only paying patrons
    4. Patrons and staff
  12. A patron is seen selling pills in the washroom. What is the licensee's duty under O. Reg. 746/21?

    1. Charge the patron a cover fee
    2. Ignore it unless the pills are being mixed with alcohol
    3. Not permit controlled substances on the premises
    4. Allow it in washrooms only
  13. A restaurant sells a bottle of wine with a takeout pizza. Which conditions apply?

    1. Securely closed, bought and removed with the food
    2. Anyone may collect it for the buyer
    3. It may be sold alone after 9 p.m.
    4. It may leave opened if it is poured into takeout cups
  14. A licensed patio's live band is disturbing nearby residents. What does O. Reg. 746/21 say?

    1. Only the municipality is responsible
    2. The licensee must not permit noise that disturbs residents
    3. Any noise is fine until 2:00 a.m.
    4. Noise rules apply only indoors, so the patio band is allowed
  15. A restaurant has a bring-your-own-wine endorsement. Which wine may patrons bring in?

    1. Homemade wine in any bottle
    2. Sealed, unopened, commercially made wine
    3. Any opened bottle of wine
    4. Any sealed beer or spirits as well as wine
  16. If neither the Building Code Act nor the Fire Protection and Prevention Act applies, how is capacity set under the Registrar's standards?

    1. 0.5 square metres per person
    2. 1.11 square metres per person
    3. 2 square metres per person
    4. 3.5 square metres per person
  17. Where must a liquor sales licence be displayed?

    1. On the bar's website only
    2. In the manager's office, available on request
    3. In a conspicuous place on the premises
    4. At the AGCO head office
  18. A patron arrives at a bar carrying a sealed bottle of wine bought at a store to take home later. What does O. Reg. 746/21 allow?

    1. It must be thrown out at the door
    2. It must be handed over to the LCBO
    3. It may stay sealed with them for use elsewhere
    4. Staff may open and serve it to them for a corkage fee
  19. Who must keep control over who enters and stays on licensed premises?

    1. The AGCO inspector on duty
    2. The most senior server working that shift
    3. The local police chief
    4. The licensee or a manager it appoints
  20. A bar has two licensed areas with separate capacities. The patio is half empty and the main room is packed. May it combine the capacities?

    1. No, each area's own limit applies
    2. Yes, if the total stays under the sum
    3. Yes, if security counts at the door
    4. Yes, on public holidays
  21. What is the minimum size of the Sandy's Law warning sign?

    1. 8 by 10 inches
    2. 5 by 7 inches
    3. 4 by 6 inches
    4. 11 by 17 inches
  22. Patrons waiting outside a bar start fighting on the sidewalk. What must the licensee do under O. Reg. 746/21?

    1. Lock the doors and wait it out
    2. Report it to AGCO next business day and do nothing else
    3. Nothing, the sidewalk is public property
    4. Take reasonable measures to deter disorder nearby
  23. Under O. Reg. 746/21, where must a bar normally buy the liquor it sells?

    1. From any grocery store
    2. From a duty-free shop
    3. From a friend's home brewery
    4. From the LCBO

Running licensed premises: 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 ↗

Registrar's Interim Standards 1, 6

  • Post licence and endorsements in a conspicuous place.
  • During a suspension, post the Registrar's sign visible from outside for the whole suspension.
  • Capacity includes employees; may not exceed licence capacity. Building Code Act capacity, else Fire Protection and Prevention Act, else 1.11 m² per person.
  • Premises must be readily distinguishable from adjacent unlicensed premises; liquor not on sale stored securely.

house policies; karaoke tip sheet

  • Count staff in capacity; separate licensed areas' capacities cannot be combined.

LLCA s. 36; O. Reg. 745/21 s. 24; AGCO Sandy's Law page

  • Prescribed warning sign about fetal alcohol spectrum disorder: "WARNING: Drinking alcohol during pregnancy can cause birth defects and brain damage to your baby".
  • At least 8 x 10 inches; English (French may be added); displayed prominently, visible to patrons, where liquor is sold and served (retail: where purchased).

O. Reg. 746/21 ss. 23, 35, 39–46

  • Liquor sold and served only under supervision of an employee authorized by the licensee.
  • Liquor must be bought from the LCBO or properly transferred between the licensee's premises (Beer Store / brewery purchases made before April 1, 2026 still allowed).
  • No one may possess other liquor at the premises, including kitchens and storage. Exceptions: patrons' sealed retail purchases for use elsewhere; bring-your-own-wine endorsement (sealed, commercially made wine, served to the patrons who brought it); manufacturer samples for staff; lottery prizes; auctions.
  • Opened, unfinished commercially made wine may be securely resealed and taken home (not by an intoxicated patron).
  • Takeout: securely closed, bought with food, removed with the food by the same patron, 9 a.m.–11 p.m.
  • s. 42: licensee or appointed manager maintains control over premises.
  • s. 43: no intoxication, unlawful gambling, disorderly conduct, or controlled substances; police on duty get access including washrooms, food prep and storage.
  • s. 44: reasonable measures to deter disorderly conduct nearby; s. 45: outdoor noise must not disturb residents; s. 46: comply with zoning, Building Code, Fire Code, Health Protection and Promotion Act.

Information sheet: illegal liquor

  • Illegal liquor examples: smuggled products, homemade liquor, watered-down liquor, liquor not bought from the LCBO, personal imported bottles sold or served.

Four steps for an AGCO inspection

  • Inspections may happen at any reasonable time; do not block, interfere with or obstruct.

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