Law for Licensed Premises Assignment

Introduction

This Law for Licensed Premises Assignment comprises of various types of licenses and their use in the given case study. Leasehold, freehold, managed houses, open house and tenancies etc. are those where different types of license are required such as premises license and personal license. A personal license is obtained for the purpose of selling and supplying alcohol and acts in accordance with the premises license whereas the premised license, apart from selling and supplying of alcohol, is also obtained with the purpose of all types of licensing activities that involves late night refreshments and other regulated entertainments. There are various rules and regulation, which the company must comply with at its workplace. Those regulations are explained here.

Task 1 Understanding the effects of licensing legislation

a) Discuss the merits of given types of license premises

Leasehold/freehold- 

• According to the Cambridge Dictionary, a commercial property may be referred to as a piece of land used for business. Whereas a residential property is defined as a piece of area situated in a residential place only surrounding with houses and private offices. For the purposes of the present case study we may concur that the Old City Catering CO. requires a commercial property to extend its businesses.

A commercial property may be of two categories:

• Leasehold: It is a form of agreement wherein, the leaseholder promises to pay an amount of consideration in exchange of rights of usage for a certain period of time. The most common type of lease is that of 99 years. In case of renting a leasehold property various considerations are to be kept in mind such as, vat exemptions, ownership rights, permission to make alterations, responsibility of repairs, insurance information and such other charges. Leasehold may be converted as a freehold at the will of the owner. In such a case, leaseholder reserves the right to be asked first. [Cokorinos, Lee. 2003]
• Freehold: It is a common purchase of land gaining all the rights and duties attached to it on its sale. Two perspectives are important when it comes to freehold properties that are, the property must be sold for an indeterminate time period, and that the property should be a immovable property that cannot be moved from one place to another. The property is owned in perpetuity at a one time cost.

Therefore it is noted that the Old City Catering Co., shall take up the option of acquiring a commercial leasehold property in order for the purposes of extension as it would be long-term temporary option that could be bailed as and when required.  Hence, the Old City Hospitality Group will be required to obtain the Leasehold for a number of years from the freeholder of the area of Docklands.

Managed houses/tenancies

Managed houses are properties run by managers whereby the said property is owned by the landlords. UK, at present, has at least 17000 free houses. In this scenario the pubs have a complete access over the issues like liquor sale. It is however observed that the companies that own the land and run their own breweries would make more money than their rented competitors. A private landlord or a manager of a house in multiple occupations (HMOs) is required to adhere with the Housing Act 2004, which introduced the licensing for HMOs. Mandatory licensing and additional licensing are two types of HMO under the act. [Phillips, J. (2011)]

Tenancy on other hand requires the tenant to pay for the fixtures and goodwill and pay rent to the brewery or Pub Company.  The licensee here would have no right to manage the sale of the beers and such other drinks. However, Beer Orders allow the tenants to sell one real ale of their own choice. It is seen that with the need of time the reputed pub companies are opting for a full lease agreement or freehold rather than being a temporary tenants.

Therefore, the Old City Catering Co. shall go for managed houses option when required.

Members clubs/open houses

• Member’s club- A club is an organization whereby; the members to the club socialize on a regular basis at their own will. Every club has a reason that leads to its formation. For example, book clubs, gardening clubs, health clubs, country clubs and so on. Members club may incorporate or not. Corporate is the one where the members contribute funds for the said purpose. Unincorporated refers to the club owned by one single proprietor in order to make profits. The rules and by laws would be regarded as customary and to be abided by every member. The possible liabilities arising out of the membership would that be of tort. These clubs are regulated by civil laws and the concerning statutes. The major disadvantage of Member’s Clubs is that they are productive and encourage social activities and interests. [Spiers, D. (2008)]
• Open access- It refers to an unrestricted access to the premises. Meaning, that the interested persons may come as they please at their own will. Such a property isn’t owned by anyone nor is it managed. A property is said to be an open-access property whereby the ownership is not established. The government however, may change its status into private or public property depending on the requirement. To utilize the open access one must obtain a Temporary Event Notice (TENs).  It is a valuable option as it grants free right of access and has minimum social and legal restrictions attached to it.  [Kidner, R. (1995)]

Food drink only/ dancing and gaming

• Food drink only - The food and drink only business must be registered and the food business shall comply by the environmental health service legislations in order to meet the necessary requirements. It shall get itself enrolled and registered as per the local laws of the Docklands and make necessary provisions for a proper functioning of the food services department.

The Old City Hospitality Group is required to obtain premises license because premises license will give them the authority to run their business for selling and sullying alcohol on permanent basis.

• Dancing and gaming-

The Gambling Act, 2005 regulates the gambling activities in UK. The activities governed under this law are sports events, gaming, lotteries or any other happenings (Viaden, 2012). Also, Machine Game Duty requires to be paid for by the organization.

According to the Licensing Act, 2003 the licenses are granted for the following purposes:

• Premises
• Temporary Event Notices
• Personal Licenses
• Late Night Refreshment and 24-hour alcohol licenses

For the purposes of discussing the food drink and dancing & gaming, the last certificate would be discussed in detail. It refers to the requirement of consumable hot food and drinks by the customers during the time period 11 am to 5 pm. A 24 hour license, however related to the permission to sell alcohol on a 24 hour basis.

b) Differentiate between personal and premised license showing the appropriateness of any in the proposed development

Differentiation between personal license and premised license

Basis	Personal License	Premised License
Scope	Narrow. Only restricted to alcohol.	Broad. Includes all licenses.
Purpose	Facilitate anybody interested in managing a business of sale of alcohol.	Includes sale of alcohol with entertainment activities
Activities	pubs and bars cinemas theatres nightclubs late-opening cafes takeaways village and community halls	theatrical performance showing a film indoor sporting event boxing or wrestling (indoor or outdoor) live music recorded music dance
Validity	Ten years	In effect until the owner found: dead, of unsound mind, dissolution of business, club ceases to be a recognized club, or surrender of the license by the owner.
Granting Authority	The authority that grants the license.	The authority whereby major part of premises is located.
Form Details	Holder’s name and address which the relevant authority name.	Holder’s name and address which the relevant authority name, validity period if any, licensing activities, and other relevant conditions.
Responsibility	License holder	Licensing authority

 

As discussed above, Old City Catering Co. needs to acquire both the licenses in order to run a successful clubbing business. The Old City Hospitality Group has to obtain the premised license to run its business and also has to obtain personal license.

c) Compare the procedures involved in obtaining the variety of licenses

Registration shall be done in order to legalize the suggested activities.  If registration is not complied with it may be sanctioned for fine or 2 years of imprisonement or both in certain circumstances. (Gov.UK, 2014).

PPL is a licensing company that grants rights for broadcasting recorded music on an online or public platform. It carries the right of broadcast on BBC television and channels that include, iTV, Channel 4. Also, it governs commercial radio networks licenses such as Global, Capital, Heart, and Absolute Radio. It is required by any person that utilizes the recorded music or music videos for the purposes of entertainment. Licensing costs depend on the size of the business. Public Performance licenses are provided to the hotels, organizations, gyms, schools, universities, as well as service providers for the purposes of copying the music to the juke boxes and fitness compilations.

PRS license is a license that allows the business to play live music on its respective premises. It can be obtained by shops, cinemas, casinos, churches, public transport, and offices. The performers use actual lyrics and music that is played at the time of performance including radio, CDs and television.  [Jefferies, Jack P, and Jack P Jefferies, 1995]

In case of playing a recorded music in public place, the premise owner would require both PPL as well as PRS License. Therefore, it is advisable that the Old City Catering Co. to apply for both the licenses. Hence, the Old City Hospitality Group must obtain all the above three licenses except personal license because Premises license for selling and supplying alcohol is required to have a designated premises supervisor who holds a personal license.

d) Assess the guidelines on the conduct of the licensed premises which the Old City Hospitality Group needs to produce for the use of its staff in all the proposed night clubs

Part 2 of the Liquor Licensing Act 1997 require training and practices for responsible servicing of alcohol and training. The Old City Hospitality Group must make sure that its staffs that are involved in the servicing or is supplying liquor on or at its premises is an absolute one on a national scale qualified responsible service of alcohol training. The training provided to the staff must be completed within 3 months. If the staffs of the Old City Hospitality Group are not given proper training then as to the content of the management plan as well as in the manner that has to be implemented, then the existence of the management plan will not constitute taking reasonable steps in preventing the operational practices of the licensed premises [Editorial board. (2012)]

Task 2 Understanding the Consumer Protection

a) Assess the consequences of misleading information provided to the customers regarding display of prices in the bar, alcoholic strength, and trade descriptions act

Display of prices in the bar

As of 2014 the amendment procedures for the Licensing Act, 2003 mandates the premise holders to provide the following alcohol, like beer, cider, gin, rum, vodka, whisky based on its measures. Also, making the relevant information for the measures, and availability of these measures along with the costs, and pricelists with respect to the prescribed measures, displayed explicitly. If the customer is unaware of the measure and the costs then it is the duty of the management and the owner to make them aware of it. The information that is required by the customer to make an informed decision shall be posted on the menu in order to avoid any misleading activities. Relevant information may include, name, brand, strength and the likes. The pricelist must mention the VAT details, service charges and cover charges, if any. If the business fails to mention or abide by the regulations then the business shall be accused of unfair trade practices under the Consumer Protection Act, 1987.In the said case the person found guilty would be liable of summary conviction along with indictment of a fine or imprisonment or both considered suitable to the situation  [Cunningham, A. (n.d.). Caveat Consumer]

Alcoholic strength

A declaration of the alcohol by volume (ABV) is essential as part of the name of alcohol so as to specify the actual nature and differentiate the various types of alcohol. For the business trading in alcohol and serving too, it needs to follow the criteria of serving alcohol by volume also abbreviated as ABV. The regulation governing the concept is, Food Labelling Regulations, 1996 and The Weights and Measure (Intoxicating Liquor) Order 1988/ Weights and Measures Legislation. Along with the measurement, the brand name, essence of the drink and other relevant details along with prices are necessary to be mentioned. It also makes it mandatory for the business to mention the alcoholic strength of the pre packed drinks that contain more than 1.2% of ABV content.

Trade Descriptions Act

Section 1 of the Trade Descriptions Act 1968 states that false description regarding selling and supplying of alcohol is an offence. A false trade description or a misleading one would result in being held accused of unfair trade practices under the Trade Descriptions Act, 1968; Data Protection Act 1998; the companies (Trading Disclosures) Regulations 2008. The Trade Descriptions Act 1968 prevents the organizations from misleading the consumers by making false claims about the products and services in which they are dealing. The regulations make it mandatory for the necessary information to be made available in a readable and visible manner.  In the said case the person found guilty would be liable of summary conviction along with indictment of a fine or imprisonment or both considered suitable to the situation. Any such false trade description about those products and services is an offence and imposes a strict liability on those traders

b) Evaluate sale of goods and consumer protection in the given situation

Sale of Goods Act 1979 applies to the contracts whereby goods are exchanged in return for monetary amount. The important factors to be kept in min while trading are the ownership of the good and the quality for the same. Also, that the rights and duties get transferred on the sale of goods under the said legislation.

Consumer Protection Act 1987 makes provision in respect to the liabilities of any person or company for causing damage to the product due to defects in it. The consumers are protected under the Consumer Protection Regulations 2008 from the unfair trade practice done by the manufactures, producers or sellers of the product. [Tiernan, M. (1993)]

Employers Liability (Compulsory Insurance) Act, 1969 suggests the minimum extent of relief to be provided by the companies to its employees under the working conditions. They are required to provide a certificate assuring the safety measures and the insurance liability of the employer. Employer’s liability to the consumers on the other hand, mentions the possibilities of any harm caused by the supplier to the consumers. Under the labour laws the supplier or the employee must have certain remedies against the said guilty employee. Also, under section 113 of the Consumer Protection Act, 1987 the employer is liable for the said performance or omission of the act harming the consumer. Harm could be categorized as the as a physical or a consequential harm resulting in liabilities. Section 113 of CPA redirect to the Enterprise Act of 2002 that suggest that the minimum protection mentioned by the act and the implied protection arising out of the due course of business shall be complied with.

c) Implement all the aspects of weights and measures legislation

The Weights and Measures (Packaged Goods) Regulations 2006 provides for an agenda of quantity control packaged goods. It allows the consumers to be well informed about the quantity of the packaged goods. This regulation also protects the consumers against short measure.  The Licensing Act, 2003 makes it mandatory for the premise holders to provide the following information such as

• beer
• cide,
• gin
• rum
• vodka
• whisky

based on its measures.

The regulations make it mandatory for the necessary information to be made available in a readable and visible manner. Also, makes the relevant information for the measures, and availability of these measures along with the costs, and pricelists with respect to the prescribed measures, to be displayed explicitly. Otherwise, the person found guilty would be liable of summary conviction along with indictment of a fine or imprisonment or both considered suitable to the situation. In case, the business fails to abide by the regulations then it shall be accused of unfair trade practices under the Consumer Protection Act, 1987.

Conclusion

The Weights and Measures (Packaged Goods) Regulations 2006 provides for an agenda of quantity control packaged goods. This regulation allows the consumers to be well informed about the quantity of the packaged goods. The Old City Hospitality Group must enter into a contract with its employee and that contract must contain the respective rights and duties of its employees. There are many types of discrimination such as direct and indirect discrimination, associative and perspective discrimination. The law protects the employees from any discrimination at the workplace on the ground of any of the above-mentioned discriminations.

References:

• Jefferies, Jack P, and Jack P Jefferies. 1995, Hospitality Law. East Lansing, Mich.: Educational Institute of the American Hotel & Motel Association. Print.
• Cokorinos, Lee. 2003. The Assault on Diversity: An Organized Challenge to Racial and Gender Justice. New York: Rowman & Littlefield.
• Office, International Labor. Ergonomic Checkpoints. Geneva: International Labour Office, 2010. Print.
• Sargeant, Malcolm, and Maria Giovannone. Vulnerable Workers. Farnham: Gower, 2011. Print
• Editorial board. (2012). Atmospheric Environment, 47, p.i.
• Tiernan, M. (1993). Liquor law. Melbourne, Vic.: Leo Cussen Institute.
• Jackson, D. and Smith, A. (1994). Consumer protection. Bristol, England: Jordans.
• Anon, (2013)
• Anon, (2015)
• Cunningham, A. (n.d.). Caveat Consumer – Consumer Protection and Cloud Computing – Part 1. SSRN Journal.
• Kidner, R. (1995). Vicarious liability: for whom should the 'employer' be liable. Legal Studies, 15(1), pp.47-64.
• Spiers, D. (2008). Property law. Dundee: Dundee University Press.
• Phillips, J. (2011). Property! What property?. Journal of Intellectual Property Law & Practice, 6(12), pp.839-839.
• Sherrow, V. (2008). Food safety. New York: Chelsea House.