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. The following provisions are indicative, but not determinative, for a management agreement that is consistent with the 2009 ABCC decision in the case known as In Re WCM, LLC Boston (ABCC decision of June 9, 2009): Management agreements in the spirits industry allow a licensee to retain ownership of the license on its own behalf while delegating rights and obligations to a manager. , provided that the final control of the company remains in the hands of the licensee. Poorly developed administrative arrangements will not survive, as the authorisation bodies apply to such agreements and will therefore not be approved. 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). 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. 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? On the transaction side, for example, hotel and restaurant operators often unknowingly violate the state`s licensing provisions by not receiving the corresponding intermediate licences for operation after closure (i.e. before the seller`s spirits licence is officially transferred or a new licence is granted to the buyer). For example, in Florida, it has become a standard practice for hotel buyers and sellers to enter into an Interim Beverage Service Management Agreement in which the seller authorizes the buyer to use the seller`s liquor license in the hotel`s operation after closing, until the buyer can transfer the license or obtain his own license.