California Real Estate Practice Exam

Which of the following does NOT qualify for an "on-sale" liquor license?

1. 12-year-old restaurant

2. A cafeteria that was six months old

3. A club that was six months old

4. One year old hotel

The correct answer is: 12-year-old restaurant

The scenario presented here requires understanding the criteria for an "on-sale" liquor license, which is typically granted based on the establishment's age and type. In California, certain establishments must meet specific qualifications to obtain this licensing. A 12-year-old restaurant is already well-established and generally qualifies for an "on-sale" liquor license due to its longevity and operational history. It is common for older restaurants to hold such licenses since they have had ample time to prove their compliance with regulations and serve alcohol responsibly. In contrast, a cafeteria that is only six months old may not have established a sufficient track record to be eligible for this type of license. Similarly, a club that has only been in existence for six months likely faces the same challenges as the cafeteria regarding proving operational stability and responsibility in serving alcohol. A one-year-old hotel, while still relatively new, has more operational context compared to the six-month establishments. Hotels typically have different licensing considerations; therefore, this option is more prone to qualifying due to the nature of their operations. Overall, the rationale is that a 12-year-old restaurant has the longevity, experience, and operational history that qualify it for an "on-sale" liquor license, while the other options, being newer, face more stringent scrutiny