You'll need to get liability insurance for you business. You, as the distributor of the candy, are liable. Liability insurance is your responsibility, make sure you tell the location owner that you plan on carrying liability insurance.
This is not correct. Is a restaurant owner liable if you take too big of a mouthful and choke on your chow mien? Is Nabisco liable if you stuff your face with too many Cheeze Its, choke and die? You take certain risks when you consume anything. That makes it the liability of the person eating, not the liability of the person offering the consumable.
Now, if the food you are serving is DESIGNED to make people choke, or there is some sort of reckless factor in which you KNEW the food wasn't safe for consumption yet you served it anyway, then it becomes your liability.
I'm not an attorney... but if you consult one, you will most definitely find the above is correct.
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