Selling alcoholic beverages is a privilege subject to both state and federal control. Each state has some sort of department of alcoholic beverage control. Most states regulate the liquor industry largely by means of licensing. Licenses may be denied for failure to meet specified qualifications on citizenship, residence, and moral character. Licenses may, on application to the liquor board, be transferred.
The Bureau of Alcohol, Tobacco and Firearms (ATF) within the Treasury Department exercises federal control over the liquor industry under the Liquor Enforcement Act of 1936 (18 U.S.C.A. §§ 1261 et seq.). These statutes authorize the ATF to enforce state statutes affecting the interstate liquor trade.
The following form seeks to transfer a tavern business and the liquor license governing the tavern (subject to the approval of the state liquor licensing board).
Rhode Island Agreement for Sale of a Tavern Business is a legally binding contract that outlines the terms and conditions of the sale/purchase of a tavern business in the state of Rhode Island. This agreement ensures a smooth and transparent transaction between the seller (current owner of the tavern business) and the buyer (potential new owner). The agreement contains several key elements, including: 1. Parties Involved: The names and addresses of the seller and the buyer are clearly identified at the beginning of the agreement. 2. Sale Price: The agreement specifies the agreed-upon purchase price for the tavern business, which includes the value of the assets, inventory, and goodwill. 3. Assets Included: The agreement lists all the assets being sold as part of the tavern business, such as furniture, fixtures, equipment, licenses, leasehold improvements, etc. It ensures that both parties are aware of what is included in the sale. 4. Liabilities and Debts: Any existing debts or liabilities related to the tavern business are detailed in this agreement. The buyer agrees to assume certain liabilities, if any, and the seller represents that there are no undisclosed debts. 5. Due Diligence: The agreement allows the buyer a period to conduct their due diligence, during which they can inspect the financial records, licenses, permits, and other relevant documents of the tavern business. 6. Closing Date: The agreement sets a specific date for the closing of the sale, at which point the ownership and possession of the tavern business will transfer to the buyer. Any necessary permits and licenses should be transferred on or prior to this date. 7. Seller's Representations and Warranties: The seller represents and warrants that they are the lawful owner of the tavern business and that it is free from any encumbrances or legal disputes. They also promise that all information provided regarding the tavern's financials, licenses, and other aspects is accurate and complete. 8. Non-Competition and Confidentiality: The agreement often includes clauses that limit the seller's ability to compete with the buyer's new tavern business within a defined geographic area and protect the confidentiality of certain information. 9. Dispute Resolution: In case of any disputes arising from the agreement, it may specify the preferred method of dispute resolution, such as mediation or arbitration. 10. Governing Law: The agreement is governed by the state laws of Rhode Island. Different types of Rhode Island Agreement for Sale of a Tavern Business may include variations suited to different situations. For example, there may be specific agreements for the sale of a tavern business with real estate included, or agreements tailored for different sizes or types of tavern businesses (e.g., sports bar, brewpub, wine bar). Each agreement may have slightly different clauses or provisions to address the unique aspects of the specific type of tavern business being sold.
