Liquor License Common Terms

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What Are Some Common Terms Used in Liquor Licenses?

Many new businesses require a liquor license to operate.  Upon applying, most liquor licenses contain similar terms.  Here are a few common ones: 

What Types of Restrictions Are Common in Liquor Licenses?

States vary widely on the types of restrictions placed on liquor licenses, but they often have numerous restrictions even if you are granted a license.  For example, a liquor license may allow you to sell liquor only within a certain area of your business.  Selling to minors is forbidden.  Violating a restriction is a violation of the liquor license terms. 

What Are Dram Shop Act Laws?

 “Dram Shop” laws allow people who are injured by intoxicated people to file lawsuits against the business (or its owners) which served the alcohol to the intoxicated person.  Along with a liquor license comes a duty not to provide alcohol in excess, nor to people who are visibly intoxicated.  If you are a business owner, you should find out if such laws exist in your area.  In fact, some liquor licenses or insurance companies may require you and your employees to attend training programs to avoid such liability.

What Are “Zoning” Laws and How Do they Apply to Liquor Licenses?

Zoning of the land is done by almost all local governments.  Be aware of the proposed location of your business before applying for a liquor license, since a proposed location in the wrong “zone” may cause a denial of your application.  In terms of liquor licenses, a business located in a “wet zone” would be allowed to apply for a liquor license while a business located in a “dry zone” would not.

Should I Get a Lawyer to Negotiate or Review the Terms of the Liquor License?

Since liquor licenses are subject to strict regulations, many of the terms in such agreements can be very complicated or confusing.  An experienced attorney will help guide you through any problems or questions you might have in regard to the terms.  If you don’t understand the terms, you may accidentally violate them.

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Last Modified: 08-02-2012 02:31 PM PDT

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