LCQ Compliance and Enforcement 3 — Questions and Answers
Question 1: Under the Sale and Supply of Alcohol Act 2012, what is the maximum fine a corporate body can receive for selling or supplying alcohol without a licence in NZ?
- $20,000
- $40,000
- $100,000 (Correct answer)
- $200,000
Correct answer: $100,000
Under section 6 of the Act, a corporate body that sells or supplies alcohol without a licence is liable on conviction to a fine not exceeding $100,000.
The Sale and Supply of Alcohol Act 2012 creates a tiered penalty system. For individuals selling without a licence the fine is up to $10,000, but for a body corporate (a company or incorporated entity) the maximum fine jumps to $100,000. This reflects Parliament's intent to deter commercial operators from bypassing the licensing regime.
Question 2: What is the primary role of a Licensing Inspector under the Sale and Supply of Alcohol Act 2012 in NZ?
- To prosecute licensees in the District Court
- To monitor and investigate compliance with the Act and licence conditions (Correct answer)
- To set local alcohol policies for the district
- To issue manager's certificates to applicants
Correct answer: To monitor and investigate compliance with the Act and licence conditions
Licensing Inspectors are appointed to monitor compliance with the Act and licence conditions, investigate complaints, and report to the District Licensing Committee.
Under the Act, Licensing Inspectors are employed by local councils and serve as the primary compliance officers for the alcohol licensing system. Their duties include visiting licensed premises to check compliance, investigating complaints from the public, reporting on applications for new licences or renewals, and referring matters to the District Licensing Committee (DLC) or Police for further action. They do not have the power to prosecute directly — that rests with the Police or the DLC.
Question 3: Under the Sale and Supply of Alcohol Act 2012, who has the power to apply to the Alcohol Regulatory and Licensing Authority (ARLA) for a licence to be cancelled?
- Any member of the public
- Only the licensee themselves
- The Police, a Licensing Inspector, or a Medical Officer of Health (Correct answer)
- Only the District Licensing Committee
Correct answer: The Police, a Licensing Inspector, or a Medical Officer of Health
The Police, Licensing Inspectors, and Medical Officers of Health can apply to ARLA for cancellation or suspension of a licence.
ARLA (Alcohol Regulatory and Licensing Authority) is the appellate and enforcement body at the national level. The Police, Licensing Inspectors, and Medical Officers of Health all have standing to apply to ARLA to cancel, suspend, or vary a licence or manager's certificate. Members of the public can object at the DLC level but cannot directly apply to ARLA for cancellation.
Question 4: What does a 'closure order' under the Sale and Supply of Alcohol Act 2012 allow Police to do in NZ?
- Permanently revoke a licence without a hearing
- Close licensed premises for up to 24 hours where disorder is occurring or imminent (Correct answer)
- Fine the licensee on the spot up to $5,000
- Remove the duty manager's certificate immediately
Correct answer: Close licensed premises for up to 24 hours where disorder is occurring or imminent
Police can issue a closure order to close premises for up to 24 hours when there is disorder on or near the premises or when there is a serious risk of disorder.
Section 168 of the Act gives Police the power to close licensed premises for up to 24 hours without going to court when disorder is occurring or is imminent in or near the premises. This is an emergency power to manage public safety. It does not by itself affect the licence — the DLC or ARLA would handle any longer-term action against the licence after the immediate situation is resolved.
Question 5: Under NZ law, what is the offence of 'aiding and abetting' in the alcohol licensing context?
- Serving someone who later drives drunk
- Assisting or encouraging another person to commit an offence under the Act (Correct answer)
- Employing an uncertified manager
- Failing to display the licence on the premises
Correct answer: Assisting or encouraging another person to commit an offence under the Act
Aiding and abetting means assisting, encouraging, or facilitating another person in committing an offence under the Act, and carries the same penalties as the primary offence.
Under New Zealand law (Crimes Act 1961 principles applied to the alcohol Act), a person who aids, abets, counsels, or procures another person to commit an offence is treated as a party to that offence and can be convicted and sentenced accordingly. In a licensed premises context this could mean a manager who tells staff to serve obviously intoxicated patrons, or an owner who instructs staff to serve minors.
Question 6: Under the Sale and Supply of Alcohol Act 2012, which body hears appeals against decisions of a District Licensing Committee in NZ?
- The High Court
- The Alcohol Regulatory and Licensing Authority (ARLA) (Correct answer)
- The Ministry of Justice
- The Local Council
Correct answer: The Alcohol Regulatory and Licensing Authority (ARLA)
ARLA (Alcohol Regulatory and Licensing Authority) is the specialist body that hears appeals against DLC decisions on licences and manager's certificates.
The two-tier licensing system in New Zealand has the District Licensing Committee (DLC) at the local level and the Alcohol Regulatory and Licensing Authority (ARLA) at the national level. Decisions of the DLC — including licence grants, renewals, cancellations, and suspensions — can be appealed to ARLA. Further appeals on questions of law can then go to the High Court.
LCQ Compliance and Enforcement 3
Under the Sale and Supply of Alcohol Act 2012, what is the maximum fine a corporate body can receive for selling or supplying alcohol without a licence in NZ?