What can happen if a restaurant fails to meet its SIR obligations?

The correct answer is that the LCLB (Liquor and Cannabis Regulation Branch) may impose conditions and allocate fault for damages if a restaurant fails to meet its SIR obligations. This reflects the regulatory framework within which establishments operating with liquor licenses must function. The SIR (Serving It Right) program establishes responsible service practices to help minimize risks associated with alcohol consumption.

If a restaurant does not adhere to these obligations, the consequences can include stricter operational conditions imposed by the LCLB. This is a corrective measure aimed at encouraging compliance and ensuring public safety. Allocating fault for damages could also involve holding the establishment accountable for any incidents that occur as a direct result of failing to follow the required obligations, such as serving intoxicated patrons.

The other choices do not align with the potential repercussions of failing to meet SIR obligations. Automatic license renewal would not occur without compliance; mandating free drinks does not serve as a penalty but rather a reward; and ignoring intoxicated guests would contradict the very essence of responsible service that the SIR program promotes.