What does a Temporary Authority allow a new licensee to do?

What does a Temporary Authority allow a new licensee to do?

• A. Change the establishment's purpose
• B. Trade on the basis of the previous owner’s license for a short period
• C. Renovate the premises as needed
• D. Terminate the existing license

Answer: (B)

A Temporary Authority is a provision that enables a new licensee to begin operating a licensed establishment immediately, using the existing license of the previous owner. This arrangement is particularly crucial because it allows the new licensee time to complete their own licensing process while still being able to trade legally. The Temporary Authority is generally granted for a limited period, ensuring that the business can continue its operations without interruption during the transition of ownership. This mechanism supports the seamless transfer of operations and helps maintain stability within the community and the establishment itself, preventing potential revenue loss for both the business and local suppliers. It does not grant the new licensee the power to change the establishment's purpose, renovate the premises extensively, or terminate the existing license, as these actions require proper assessment and regulatory compliance under the law.

A Temporary Authority is a provision that enables a new licensee to begin operating a licensed establishment immediately, using the existing license of the previous owner. This arrangement is particularly crucial because it allows the new licensee time to complete their own licensing process while still being able to trade legally. The Temporary Authority is generally granted for a limited period, ensuring that the business can continue its operations without interruption during the transition of ownership.

This mechanism supports the seamless transfer of operations and helps maintain stability within the community and the establishment itself, preventing potential revenue loss for both the business and local suppliers. It does not grant the new licensee the power to change the establishment's purpose, renovate the premises extensively, or terminate the existing license, as these actions require proper assessment and regulatory compliance under the law.