HSP_MGMT 1133 1st EditionFinal Exam Study Guide: Chapters 11 and 12Lecture 32: Liquor Licenses What do you need to qualify for a liquor license under state law? What does the Liquor and Tobacco Control Agency do? What are the standards regarding age and alcohol service? What isthe Good Faith Defense? What is the dram shop liability? What was the original MO law regarding Dram shop liability and what was the problem with this law? What happened as a result of Kilmer vs Stefanina’s Pizzeria? Qualification for liquor license under state law:- Must be of good moral character- Must be a tax payer- There is no limit on the number of liquor licenses distributed in MOAgency that enforces liquor laws: Used to be mainly the Liquor and Tobacco Control Agency, but now police officers regulate a lot of liquor laws- Liquor and Tobacco Control Agency- three dutieso Licensing- investigating liquor license applicationso Inspecting- inspects places that do have a licenseo Enforcing- enforcing current liquor lawso They have the power to arrest for violate of liquor laws- not things like DWI’so They have the power to carry firearms but usually don’t unless they are investigating illegal production of alcohol Things regulated by MO liquor laws:- Selling without a license- this is a crime, even if you buy a keg for a party and charge people $5 at the door to come drink from it- Hours of sale- generally between 6am-1:30am; some bars in KC and STL can sell til 3am because they are located in “special convention districts” which allow the selling of alcohol until 3am- Activity on licensed premises- restricts things that border obscene behavior o Club Vogue- voluntarily gave up their liquor license to get cops to stop patrolling there, because cops have to patrol places that are likely to have obscene behavior going on as a result of alcohol saleso Club Vogue is now known as a Juice Bar—a place that does not have a liquor license- Locations of bars- new bars cannot be within 100ft of a school or a church under state lawo If the bar is there first and then the school or church comes in, then it is okay- Selling to a minor- this is a misdemeanor, but can result in getting your license taken away if it happens repeatedly o Good Faith Defense- for bars to use if getting in trouble for selling alcohol to a minor with a fake ID Says that the server asked for the ID, it was a real ID from MO or one of the bordering states of MO and the picture it looked like the minor, then the server cannot get in trouble for this because they did everything they were supposed to do to ensure that they weren’t selling to a minor - Ages of employees and customerso National Minimum Drinking Age Act of 1984- conditioned federal highway funds on the proposition that the drinking age increaseso To pour alcohol- must be 21 (generally the bartenders pour, and servers only serve it)o If 50% of sales are due to food then 18 year olds can serve alcohol but not pour ito Must be 21 to drink or purchase alcoholo No law regulates the age the person has to be to be inside of a bar, only if they purchase alcohol or consume alcohol or attempt either of those thingso However, bars are free to exclude people under 21 if they want toAgency procedure:- Complaint- customer, parent, competitor, police officer, or someone must log a complaint- Investigation- the agency will investigate the complaint- Show cause- show cause order-- says we’ve made a preliminary investigation about your business and we invite you to show us why we shouldn’t impose discipline on you - Conference- talk about what happened and why- Decision/Hearing- imposing possible charges, or dropping them - They can shut down your business if they want to and have good reason for ito Pepper’s Night Club- used to be in Columbia but the agency shut it down because they were allowing drug deals, prostitution, etc, to occur on the premise repeatedly so the agency deemed it as a public nuisance- which is a credible reason to shut down a facility Dram Shop Liability Dram shop liability- civil liability placed on a seller of alcohol for problems related to consumption of the alcohol Also called third party liability- Why called this? Because in a typical dram shop case the plaintiff is suing a third party who is directly responsible for harming him o Plaintiff is an innocent victim who was injured by someone who left a bar after getting too drunk thereo Plaintiff sues the bar for serving this person until they were too drunk Usually the victim chooses to sue the bar and not the individual who actually hurt them because the bar has more money so they will receive more in damages that way - Common law rule- no dram shop liability used to exist; changed with the invention of the automobile because so many problems started to occur with drunk drivers- Dram shop statutes- laws within individual states that provide standards for which you can sue sellers of alcohol in the areaDram shop liability in MO: a. 537.053 of Missouri statutes------Prior version Former law allowed for limited dram shop liability Who targeted? Who defendant?- Only person who could be sued was a bar because they are the “liquor by the drink licensee” Procedural requirements under prior version- Required that before a civil dram shop case could be filed the plaintiff had to show that there had been a successful criminal prosecution of the bar for selling to a minor or intoxicated person… which is backwards in some form (its harder to win acriminal case than a civil case) Why were dram shop cases difficult to win for the Plaintiff?- Because there had to be a successful criminal prosecution firstKilmer et al v. Stefanina's Pizzeria--May 9, 2000Facts:- Individual went into Stefanina’s pizzeria alone and ordered three pitchers of beer while he was there and ate no food, he left drunk (0.15 BAC) and drove on the wrong side of the highway and hit the Kilmer family, killed one of them and severely injured the rest of them- Charged with manslaughter, he had the lowest amount of insurance which would not cover this whole situation, so the Kilmer’s lawyer wanted to sue Stefanina’s for over serving this guy and letting him leave drunk- Lawyer filed suit even though he knew he would lose in the trial court because there had not been a successful criminal prosecution yet, and then he appealed it because he wanted to prove that the prior Missouri dram shop law was