The transfer of the holder`s obligations to a director or administrative unit for the operation of the premises granted on his own account, with or without formal agreement, may lead to what the regulators call an unauthorized “transfer of the spirits business”. See Griffin`s Brant Rock Package Store, Inc. v. Alcoholic Beverages Control Commission, 12 Mass. App. Ct. 768, 771 (1981). Specifically, G.L.c. 138, item 23 prohibits the transfer of an interest in a liquor licence without the correct authorization of the local receiving authority and the ABCC. The Court of Appeal held that “the concept of a share of ownership may vary from an absolute interest in ownership to a simple right of ownership.” Number Three Lounge, Inc. vs. ABCC, 7 Mass. App.
Ct. 301, 310 (1979). Law Firms of John P. Connell, P.C.: A restaurant, bar or hotel licensed for spirits may attempt to delegate administrative responsibility to another person or establishment through a management or business contract. This agreement must be approved by the local receiving authorities and by the Alcoholic Beverages Control Commission (abCC), which are generally subject to extensive scrutiny by these boards, as they are not favoured by the supervisory authorities. If an administrative agreement is not disclosed and approved by both the local receiving authority and the ABCC, the licensee may be subject to heavy penalties, including the withdrawal of the licence, if the regulators are informed of such an undisclosed agreement. A liquor licence is at the heart of any activity involving the sale of alcoholic beverages. It binds to any other license to operate such a business that requires prior authorization from all other applicable regulatory authorities and local authorities before being issued, and a business cannot buy or sell alcohol without purchasing one. The integration of specialized alcoholic beverages can help avoid unnecessary liability and costly and time-consuming mistakes. This article was originally published in Law360 on March 1, 2017. If an alcohol licensing expert had been consulted, such regulation could have been easily avoided.
The parties were reportedly warned of an administrative procedure that would have been created precisely to allow the purchaser to obtain a temporary licence for spirits in order to fill a gap in the ability to sell alcoholic beverages. It is not only important to discuss alcoholic beverages specializing in transaction and approval, but specialized alcoholic beverage advice can be an invaluable resource during closing, transitioning a transaction phase as well as in day-to-day operation. For example, specialized consultants can be invaluable in terms of compliance and advise on issues such as: If I run out of vodka, can I send someone to buy more in the spirits store on the street? Can I make an excess inventory outside of operation? Can I build an outdoor bar by the pool? Will a change in management company affect the licensing of spirits? And of course, an alcoholic beverage consultant is essential if you are fighting legal action against a state`s liquor control authority for alleged violation of the Liquor Act or if you are fighting another part of a failed transaction because it is unable to transfer a liquor licence. The following provisions are significant, but not determinative of, a successful management agreement under the 2009 ABCC decision in the case known as In Re WCM, LLC Boston (ABCC decision of June 9, 2009): Each licensee is required to renew his licence each year by providing his current rate holders with pain relief forms and oath penalties.