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.Half-price wine bottles during a special dinner promotion
b.A free first appetizer with the purchase of one drink
c.A reduced-price beer between 4 p.m. and 6 p.m.
d.'All you can drink' for a fixed price or unlimited drinks for a single price during a set period

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 §25600.05

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