Special SituationsQuestion 93 of 100
Under Bus. & Prof. Code §25600.05, an on-sale licensee MAY offer a 'happy hour' with reduced-price drinks subject to certain limits. Which practice remains PROHIBITED?
a.'All you can drink' for a fixed price or unlimited drinks for a single price during a set period
b.A reduced-price beer between 4 p.m. and 6 p.m.
c.Half-price wine bottles during a special dinner promotion
d.A free first appetizer with the purchase of one drink
Explanation
§25600.05 allows price reductions ('happy hour') but ABC rules and §25600 generally prohibit promotions that encourage excessive consumption, including 'all you can drink for a fixed price,' unlimited drinks for a single price, and contests rewarding speed of drinking. Reduced prices at posted hours (b, c) and food-with-drink incentives (d) are permitted. Promotions that effectively eliminate the marginal cost of each additional drink are the classic prohibited pattern.
Law Reference: Cal. Bus. & Prof. Code §25600.05Practice all 100 questions free — no signup required.
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