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The House Party Keg and the Licensee's Responsibility

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The House Party Keg and the Licensee's Responsibility

A licensed bar in Flagstaff rents its back room to a private birthday party for 40 guests. The party host pays a flat fee and brings his own keg, which the bar stores in its walk-in cooler. The bar's employee taps the keg and serves guests from a temporary bar. A 20-year-old guest is served twice by the employee, who does not card because 'it's a private party.' A guest later drives and is stopped; no one is hurt. The bar's owner says the party was private and the bar only rented space. The bar's license is a series 6 bar license. The employee who poured is 22 and was trained two months ago. The host is 45 and was present the whole time.

1. Is the bar responsible for the service to the 20-year-old? Explain.

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Yes. The bar's employee tapped the keg and poured the drinks, so the bar is furnishing alcohol, not merely renting space. A private-party label does not transfer the service to the host when the licensee's employee does the pouring. The employee's failure to card is a violation; the bar cannot rely on the host's presence to cure it. The bar should have required ID checks for all guests or limited service to those the host verified in advance. The owner's claim that it was 'just a rental' is not a defense because the licensee controlled the alcohol and the service. The bar should document the event, review its private-party policy, and retrain the employee.

2. What should the bar have done differently before and during the event?

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Before the event, the bar should have a written private-party agreement that states who serves, how IDs are checked, and who is responsible for monitoring guests. The bar should require the host to provide a guest list with ages or to use wristbands for 21+ guests, and the bar's staff should check ID at the temporary bar. During the event, the bar should staff the temporary bar with an employee who cards every guest who appears under 40 and who stops service to anyone visibly intoxicated. The bar should also set a last-call time and a closing plan. The bar should not let the host bring an unsealed keg without a plan for controlled service. These steps keep the licensee in control of furnishing, which is where the legal duty sits.

3. The guest was stopped while driving. Does that change the bar's exposure?

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It increases the bar's exposure. A stop that follows service to an underage guest and possible service to an impaired guest creates a record that can support administrative action and, depending on the facts, civil claims. The bar should preserve the event records, the employee schedule, and any carding logs. The bar should not contact the guest to discourage cooperation. The owner should consult counsel and report the incident to its insurer if required. The bar should also review whether the employee served anyone who appeared intoxicated; if so, that is a separate violation from the underage service. The judgment point is that the absence of injury does not erase the regulatory violation, and the driving stop is evidence of the risk the bar created.