medium · GMAT Verbal

A city ordinance requires that any restaurant serving alcohol past midnight hold a late-night permit, and any restaurant holding a late-night permit must pass a quarterly safety inspection. Records show that the Oak Street Grill underwent quarterly safety inspections throughout the past year and never failed one.

Which of the following can be most properly inferred from these statements?

  1. The Oak Street Grill currently serves alcohol to its customers past midnight.
  2. The Oak Street Grill holds a valid late-night permit issued by the city.
  3. If the Oak Street Grill lacks a late-night permit, it need not pass quarterly inspections.
  4. Any restaurant failing a safety inspection is automatically serving alcohol illegally past midnight.
  5. The Oak Street Grill has undergone at least one quarterly safety inspection in its history.

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