LCQ Licence Controller Qualification Exam — Questions and Answers

Question 1: Under the Sale and Supply of Alcohol Act 2012, what happens if a licence renewal application is not lodged within the required timeframe in NZ?

The licence continues automatically on a rolling basis
The existing licence lapses and the business must apply for a new licence (Correct answer)
The DLC grants a 30-day extension automatically
ARLA assumes management of the licence pending renewal

Correct answer: The existing licence lapses and the business must apply for a new licence

If a renewal application is not lodged at least 20 working days before the licence expiry date, the licence expires and the business must apply for a new licence rather than a renewal.

Question 2: Under NZ law, can a duty manager refuse entry to a person who appears intoxicated before entering the premises?

No — everyone has a right to enter licensed premises
Only if there is a sign saying 'Management reserves the right to refuse entry'
Only if the person is aggressive, not just intoxicated
Yes — the duty manager can and should refuse entry to anyone who appears intoxicated (Correct answer)

Correct answer: Yes — the duty manager can and should refuse entry to anyone who appears intoxicated

A duty manager can and should refuse entry to anyone who appears to be intoxicated. It is easier and safer to prevent an intoxicated person from entering than to manage them once inside.

Question 3: What does 'fit and proper person' mean in the context of a manager's certificate application in NZ?

The applicant must have no prior convictions of any kind
The applicant must pass a physical fitness test
The applicant must provide references from three existing duty managers
The DLC must be satisfied the applicant has good character, is suitable to manage alcohol sales, and has no disqualifying history (Correct answer)

Correct answer: The DLC must be satisfied the applicant has good character, is suitable to manage alcohol sales, and has no disqualifying history

Being a 'fit and proper person' means the DLC is satisfied about the applicant's character, suitability for the role, and that their history does not disqualify them — such as recent relevant convictions.

Question 4: Under the Sale and Supply of Alcohol Act 2012, what legal consequence can flow from a conviction for selling alcohol to a young person?

A civil penalty only, payable directly to the young person's family
Automatic cancellation of the licence with no right of appeal
A criminal conviction, potential fine or imprisonment, and possible licence action (Correct answer)
A formal warning recorded on the premises file only

Correct answer: A criminal conviction, potential fine or imprisonment, and possible licence action

Selling alcohol to a minor is a criminal offence that can result in a conviction, fine or imprisonment, and adverse action against the alcohol licence such as suspension or cancellation.

Question 5: What happens to a licence if the licensee dies, becomes bankrupt, or becomes mentally incapacitated in NZ?

The licence automatically becomes void immediately
The licence can be transferred temporarily to a personal representative, trustee, or administrator (Correct answer)
The licence continues as normal with no changes needed
A completely new licence application must be made

Correct answer: The licence can be transferred temporarily to a personal representative, trustee, or administrator

Under the Act, if a licensee dies, becomes bankrupt, or becomes mentally incapacitated, the licence can be temporarily transferred to their personal representative, trustee, or administrator to continue operating the business.

Question 6: What is the BYO (Bring Your Own) provision under NZ liquor licensing?

A special endorsement on an on-licence allowing patrons to bring their own wine or beer for consumption with a meal (Correct answer)
BYO applies only to club licences
BYO is not permitted under NZ law
Any restaurant can allow BYO without any licence endorsement

Correct answer: A special endorsement on an on-licence allowing patrons to bring their own wine or beer for consumption with a meal

A BYO endorsement can be added to an on-licence, allowing patrons to bring their own wine or beer for consumption with a meal on the premises. The endorsement must be applied for and approved by the DLC.

Question 7: In NZ, what role does food service play in the responsible service of alcohol?

Food has no effect on alcohol absorption
Only meals count — snacks have no impact on alcohol absorption
Food slows alcohol absorption and reduces intoxication — on-licensed premises must make food available, and staff should actively encourage food consumption (Correct answer)
Food service is completely separate from alcohol service requirements

Correct answer: Food slows alcohol absorption and reduces intoxication — on-licensed premises must make food available, and staff should actively encourage food consumption

Food slows the absorption of alcohol in the stomach, helping to reduce the rate of intoxication. NZ on-licence conditions typically require food to be available during certain hours, and responsible service includes actively promoting food to patrons who are drinking.

Question 8: Under NZ law, what is a 'series of events' special licence and when can it be used?

A licence that applies to recurring events but only for registered charities
A licence covering a defined series of related events at the same location, such as a weekly market over a set number of weeks (Correct answer)
A single licence covering all events run by one organisation in a calendar year
A licence that covers an unlimited number of events for 3 years

Correct answer: A licence covering a defined series of related events at the same location, such as a weekly market over a set number of weeks

A special licence can cover a series of defined related events at the same location — for example, a market held every Saturday for 8 weeks — rather than requiring separate applications for each individual occasion.

Question 9: Under NZ law, what is a 'temporary authority' for a licensed premises?

A temporary licence for outdoor events only
Permission for a new owner or operator to continue selling alcohol while their own licence application is being processed (Correct answer)
A short-term permit for selling alcohol at farmers' markets
Authority to operate beyond normal trading hours during special events

Correct answer: Permission for a new owner or operator to continue selling alcohol while their own licence application is being processed

A temporary authority allows a new owner or operator of licensed premises to continue selling alcohol under the existing licence conditions while their own licence application is processed by the DLC. It lasts up to 3 months.

Question 10: Under NZ host responsibility principles, what is the duty manager's obligation when a patron's designated driver is not drinking alcohol?

The duty manager must record the designated driver's name and vehicle registration
Designated drivers must wait outside the premises
No special obligation — the designated driver can drink if they choose to
The duty manager should ensure non-alcoholic beverages are available and actively offer them to patrons who identify as a designated driver (Correct answer)

Correct answer: The duty manager should ensure non-alcoholic beverages are available and actively offer them to patrons who identify as a designated driver

Under host responsibility principles, duty managers should support patrons who are acting as designated drivers by ensuring non-alcoholic drinks are available and actively offered.

Question 11: Under NZ law, what records must a licensed premises maintain and make available for inspection?

Only financial accounts and tax records
No records are required as long as the licence is displayed
Only CCTV footage is required
Staff training records, incident register, duty manager roster, and complaints register (Correct answer)

Correct answer: Staff training records, incident register, duty manager roster, and complaints register

Licensed premises must maintain and make available for inspection: staff training records (including responsible service of alcohol), an incident register, a duty manager roster showing who was on duty and when, and records of any complaints.

Question 12: In NZ, what does 'detoxification' in the context of licensed premises mean for a duty manager's legal obligations?

A duty manager must ensure intoxicated patrons get home safely by arranging transport (Correct answer)
A duty manager must provide medical treatment to intoxicated patrons
A duty manager has no duty once alcohol service has stopped
A duty manager's duty of care ends at the door of the premises

Correct answer: A duty manager must ensure intoxicated patrons get home safely by arranging transport

While the Act does not impose an explicit duty to arrange transport, the duty of care concept means a duty manager should take reasonable steps to ensure intoxicated patrons do not harm themselves or others after leaving, including offering to arrange safe transport.

Question 13: What is the 'compulsory alcohol sensitivity training' element of the LCQ in New Zealand?

Training on how to make cocktails with less alcohol
A medical examination to test personal alcohol tolerance
Training only required for managers who have alcohol problems
Training that ensures managers understand the effects of alcohol, signs of intoxication, and strategies for managing intoxicated persons (Correct answer)

Correct answer: Training that ensures managers understand the effects of alcohol, signs of intoxication, and strategies for managing intoxicated persons

The LCQ includes compulsory training on alcohol sensitivity, covering the physiological and psychological effects of alcohol, how to recognise intoxication, and practical strategies for managing intoxicated patrons safely.

Question 14: What is the NZ approach to managing patron behaviour related to illegal drug use on licensed premises?

Duty managers should refuse entry or remove persons suspected of drug use, report suspected drug dealing to police, and not serve alcohol to persons who appear drug-affected (Correct answer)
Only call police if drugs are found on the premises
Allow drug-affected persons to remain as long as they do not cause trouble
Drug use is not the duty manager's concern unless it involves alcohol

Correct answer: Duty managers should refuse entry or remove persons suspected of drug use, report suspected drug dealing to police, and not serve alcohol to persons who appear drug-affected

NZ duty managers should: refuse entry to persons who appear drug-affected, remove persons using drugs on the premises, not serve alcohol to drug-affected persons (as combining alcohol and drugs increases risk), report suspected drug dealing to police, and maintain the safety of the premises.

Question 15: Under NZ law, can a duty manager refuse to allow a Police officer or Licensing Inspector to enter licensed premises?

No — Police and Licensing Inspectors have the right of entry to licensed premises at any reasonable time (Correct answer)
Yes, during private functions where all patrons are members
Yes, after 30 minutes' notice if they do not have a warrant
Only if the premises is not currently trading alcohol

Correct answer: No — Police and Licensing Inspectors have the right of entry to licensed premises at any reasonable time

Under the Act, Licensing Inspectors and Police have an absolute right of entry to licensed premises at any reasonable time to monitor compliance. A duty manager cannot refuse or obstruct this.

Question 16: What is the purpose of the 'host responsibility' signage that must be displayed on NZ licensed premises?

To display the menu prices for all drinks
To inform patrons about responsible drinking, available alternatives, and the premises' commitment to host responsibility (Correct answer)
To warn patrons about CCTV surveillance
To advertise the brand of alcohol sold on the premises

Correct answer: To inform patrons about responsible drinking, available alternatives, and the premises' commitment to host responsibility

Host responsibility signage informs patrons about the premises' commitment to responsible service, the availability of food, water, and non-alcoholic alternatives, and contact information for safe transport options.

Question 17: What is the primary role of a Licensing Inspector under the Sale and Supply of Alcohol Act 2012 in NZ?

To set local alcohol policies for the district
To issue manager's certificates to applicants
To prosecute licensees in the District Court
To monitor and investigate compliance with the Act and licence conditions (Correct answer)

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.

Question 18: Under NZ law, what responsibilities do off-licence retailers have under the host responsibility framework?

Off-licences have no host responsibility obligations — these only apply to on-licences
Off-licences must employ a certified duty manager at all times, the same as on-licences
Off-licence staff must still refuse sales to minors and intoxicated persons, and must display host responsibility signage including the legal drinking age (Correct answer)
Off-licences must offer free non-alcoholic alternatives to intoxicated customers

Correct answer: Off-licence staff must still refuse sales to minors and intoxicated persons, and must display host responsibility signage including the legal drinking age

Off-licences are subject to host responsibility obligations including refusing service to minors and intoxicated persons, displaying the legal drinking age and host responsibility information, and checking ID when there is reasonable doubt about age.

Question 19: In NZ, what is the duty manager's obligation regarding patrons who are members of a gang wearing gang patches on the premises?

Gang patches are permitted on all licensed premises under freedom of expression principles
Duty managers may enforce a no-gang-patch policy if this is a condition of the licence or a house rule, and must enforce it consistently (Correct answer)
Only the Police may remove patrons wearing gang patches
Duty managers must always refuse entry to gang members under the Act

Correct answer: Duty managers may enforce a no-gang-patch policy if this is a condition of the licence or a house rule, and must enforce it consistently

Some licensed premises have a no-gang-patch policy as a house rule or licence condition. If such a policy exists, the duty manager must enforce it consistently. The Act itself does not specifically prohibit gang patches, but some local bylaws do.

Question 20: Under NZ law, what is the key principle behind 'responsible promotion of alcohol' on licensed premises?

All alcohol advertising must use black and white imagery only
Promotions must not encourage rapid, excessive, or irresponsible consumption of alcohol (Correct answer)
Promotions must be approved by the DLC at least 14 days in advance
Alcohol promotions may only be advertised to persons over 25

Correct answer: Promotions must not encourage rapid, excessive, or irresponsible consumption of alcohol

The Act prohibits promotions that encourage rapid or excessive drinking, such as 'drink all you can' deals, irresponsible happy hours, or competitions involving consuming large amounts of alcohol quickly.

Question 21: Under NZ law, what is the duty manager's obligation if they believe a patron is about to drive while intoxicated?

Confiscate the patron's car keys by force
Take reasonable steps to prevent the person driving, such as offering to call a taxi or suggesting alternative transport (Correct answer)
Call the police and have the person arrested immediately
They have no obligation once the patron leaves the premises

Correct answer: Take reasonable steps to prevent the person driving, such as offering to call a taxi or suggesting alternative transport

While the duty manager cannot physically restrain a patron, they should take reasonable steps such as offering to arrange a taxi, calling a friend or family member, or suggesting alternative transport. If the person insists on driving, calling the police is appropriate.

Question 22: Under NZ law, what does the duty manager's responsibility for 'good order' on the premises include?

Maintaining order, preventing illegal activity, managing intoxication, and ensuring patrons behave safely and legally (Correct answer)
Ensuring music volume complies with council noise bylaws
Ensuring the premises is clean and tidy at all times
Only preventing physical violence between patrons

Correct answer: Maintaining order, preventing illegal activity, managing intoxication, and ensuring patrons behave safely and legally

Maintaining good order encompasses all aspects of patron behaviour: preventing illegal activity, managing intoxication, responding to disorder, ensuring minors are not served, and maintaining a safe and compliant environment.

Question 23: Under NZ responsible service principles, what does 'pacing' refer to in the context of serving alcohol?

Setting a timed schedule for last drinks announcements
Deliberately slowing the rate at which alcohol is served to individual patrons (Correct answer)
Walking around the premises at a steady pace to monitor patrons
Matching food portions to alcohol portions

Correct answer: Deliberately slowing the rate at which alcohol is served to individual patrons

Pacing means controlling the rate of alcohol service to individual patrons — for example, not serving a new drink until the previous one is mostly finished, and offering food and water in between.

Question 24: Under NZ law, what is 'secondary supply' of alcohol and when is it an offence?

Reselling alcohol purchased from an off-licence
Buying alcohol from a wholesaler instead of a retailer
Importing alcohol from overseas for personal use
When an adult supplies alcohol to a minor in a social setting without parental consent — it is an offence without responsible parent/guardian consent (Correct answer)

Correct answer: When an adult supplies alcohol to a minor in a social setting without parental consent — it is an offence without responsible parent/guardian consent

Secondary supply occurs when an adult (not a parent/guardian) supplies alcohol to a person under 18 in a social setting. Under the Act, this is an offence unless the minor's parent or guardian has given express consent and the supply is responsible.

Question 25: Under NZ law, can a duty manager delegate their responsibilities to a non-certified staff member?

Yes, but only for breaks of less than 30 minutes
Yes, if they provide written authorisation to the staff member
Yes, as long as the staff member has at least two years of experience
No — the duty manager cannot delegate their legal responsibilities; they must remain personally present and responsible (Correct answer)

Correct answer: No — the duty manager cannot delegate their legal responsibilities; they must remain personally present and responsible

A duty manager cannot delegate their legal responsibilities under the Sale and Supply of Alcohol Act 2012. They must be personally present on or about the premises and remain responsible for alcohol service at all times.

Question 26: 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?

The Police, a Licensing Inspector, or a Medical Officer of Health (Correct answer)
Only the licensee themselves
Only the District Licensing Committee
Any member of the public

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.

Question 27: In NZ, what information must be included in a licence renewal application?

A signed statement from all duty managers confirming their LCQ status
The applicant's details, the premises details, proof of LCQ currency, and a description of any changes to the business since the last licence was granted (Correct answer)
A full financial statement of the business's alcohol revenue
Updated architectural plans of the premises only

Correct answer: The applicant's details, the premises details, proof of LCQ currency, and a description of any changes to the business since the last licence was granted

A renewal application must include updated applicant and premises information, and details of any changes to the business operations, conditions, or layout since the previous licence was issued.

Question 28: In NZ, what is the role of the DLC when reviewing a licence renewal application that has attracted objections?

The DLC must automatically refuse the renewal if any objection is received
The DLC refers objections to ARLA to decide
The DLC can only consider objections from the Police
The DLC holds a hearing where all parties — the applicant, objectors, and agencies — can present evidence before a decision is made (Correct answer)

Correct answer: The DLC holds a hearing where all parties — the applicant, objectors, and agencies — can present evidence before a decision is made

When objections to a renewal are received, the DLC must hold a hearing where the licensee and objectors can present their cases and evidence before the DLC makes a determination.

Question 29: Under NZ host responsibility requirements, what information must be displayed on licensed premises for patrons?

Information about safe transport options, the availability of free water and food, and the premises' host responsibility policy (Correct answer)
Only the premises licence number
The price list for all alcoholic drinks
The names and photos of all staff on duty

Correct answer: Information about safe transport options, the availability of free water and food, and the premises' host responsibility policy

NZ host responsibility signage must inform patrons about: the availability of free drinking water, food options, non-alcoholic and low-alcohol alternatives, and safe transport options (taxi numbers, public transport). This promotes responsible drinking choices.

Question 30: What criteria does the DLC consider when deciding whether to grant a licence in NZ?

The suitability of the applicant, the nature of the premises, amenity and good order of the locality, and reports from reporting agencies (Correct answer)
Whether the local area already has enough licensed premises
Only the applicant's financial situation
Only the architectural design of the premises

Correct answer: The suitability of the applicant, the nature of the premises, amenity and good order of the locality, and reports from reporting agencies

The DLC considers multiple criteria including the applicant's suitability, the nature and location of the premises, the impact on the amenity and good order of the locality, and reports from the three reporting agencies (police, MOH, licensing inspector).

Question 31: What is the NZ legal position on serving alcohol to a person you believe is buying it for a minor?

Only refuse if you can prove they are buying for a minor
You should refuse the sale if you reasonably believe the alcohol will be supplied to a minor — this is part of preventing secondary supply (Correct answer)
This situation is not addressed by NZ law
You can serve them as it is their responsibility what they do with it

Correct answer: You should refuse the sale if you reasonably believe the alcohol will be supplied to a minor — this is part of preventing secondary supply

If a duty manager or staff member reasonably believes a person is purchasing alcohol to supply to a minor, they should refuse the sale. This supports the Act's provisions against secondary supply to minors.

Question 32: An adult who purchases alcohol on behalf of a young person (a 'proxy purchase') is:

Committing an offence under the Sale and Supply of Alcohol Act 2012 (Correct answer)
Not committing an offence if the young person's parents gave verbal approval
Only committing an offence if the alcohol is consumed in a public place
Only liable if the young person is subsequently found intoxicated in public

Correct answer: Committing an offence under the Sale and Supply of Alcohol Act 2012

Proxy purchasing — buying alcohol on behalf of a young person — is a specific offence under the Act, regardless of any parental approval or where the alcohol is later consumed.

Question 33: Under NZ law, what is the duty manager's obligation when a patron presents a suspicious or potentially fake proof-of-age document?

Take a photocopy of the document and serve the patron
Call Police immediately in every case
Refuse to accept it and decline to serve alcohol to that person (Correct answer)
Accept it if the photo looks similar to the patron

Correct answer: Refuse to accept it and decline to serve alcohol to that person

If a duty manager or staff member is not satisfied that a proof-of-age document is genuine, they must refuse to accept it and decline to serve alcohol to the person.

Question 34: What is the NZ legal position on a duty manager consuming alcohol during their shift?

It is an offence for a duty manager to consume alcohol while on duty (Correct answer)
Drinking on duty is only prohibited in venues with a closing time after midnight
A duty manager may drink if the licensee gives permission
A duty manager may drink in moderation during their shift

Correct answer: It is an offence for a duty manager to consume alcohol while on duty

Under the Act, it is an offence for a duty manager to consume alcohol while they are on duty, regardless of the amount or the licensee's permission.

Question 35: Under NZ law, what are the rules regarding free drinks promotions and irresponsible drink promotions?

Any promotion is legal as long as it is advertised in advance
Free drinks are allowed only before 9 PM
Promotions that encourage excessive or rapid consumption are prohibited — this includes all-you-can-drink deals, free drinks, drinking games, and discounts on large quantities (Correct answer)
Only promotions involving spirits are restricted

Correct answer: Promotions that encourage excessive or rapid consumption are prohibited — this includes all-you-can-drink deals, free drinks, drinking games, and discounts on large quantities

The Sale and Supply of Alcohol Act 2012 prohibits promotions that encourage excessive or rapid consumption. This includes: all-you-can-drink offers, free drinks promotions, drinking competitions, discounts that incentivise buying large quantities, and any promotion designed to encourage intoxication.

Question 36: What does 'harm minimisation' mean in the context of the NZ Sale and Supply of Alcohol Act?

Minimising the amount of alcohol available in New Zealand
Reducing the profit margin on alcohol sales
Reducing the negative effects of alcohol on individuals, families, and communities through responsible sale and supply practices (Correct answer)
Banning alcohol advertising on television

Correct answer: Reducing the negative effects of alcohol on individuals, families, and communities through responsible sale and supply practices

Harm minimisation in the context of the Act means implementing practices that reduce the negative effects of alcohol consumption on individuals, families/whanau, and communities, including responsible service, intoxication management, and community safety.

Question 37: What strategies can a NZ duty manager use to slow down a patron's rate of alcohol consumption?

Offer food, suggest non-alcoholic alternatives, slow service, engage in conversation, and serve water between drinks (Correct answer)
Add water to the patron's drinks without their knowledge
There are no legal strategies — the patron decides their own pace
Serve smaller glasses but at a faster rate

Correct answer: Offer food, suggest non-alcoholic alternatives, slow service, engage in conversation, and serve water between drinks

Effective strategies include offering food, suggesting non-alcoholic or low-alcohol alternatives, ensuring water is available, slowing the pace of service, engaging the patron in conversation, and not serving doubles or shots to at-risk drinkers.

Question 38: What is the main difference between an on-licence and an off-licence in New Zealand?

On-licence allows sale of spirits; off-licence is limited to beer and wine
On-licence allows consumption on the premises; off-licence allows sale for consumption elsewhere (Correct answer)
On-licence is for restaurants; off-licence is for bars
There is no practical difference — they are interchangeable

Correct answer: On-licence allows consumption on the premises; off-licence allows sale for consumption elsewhere

An on-licence permits the sale and supply of alcohol for consumption on the licensed premises (e.g., restaurants, bars, hotels). An off-licence permits the sale of alcohol for consumption off the premises (e.g., bottle stores, supermarkets).

Question 39: Under the Act, what is the consequence for a manager's certificate holder who is convicted of a relevant offence?

Their manager's certificate may be suspended or cancelled by the licensing authority (Correct answer)
They automatically lose their certificate for life
Nothing — criminal convictions do not affect the manager's certificate
They must retake the LCQ exam within 30 days

Correct answer: Their manager's certificate may be suspended or cancelled by the licensing authority

If a manager's certificate holder is convicted of a relevant offence (alcohol-related offence, violence, dishonesty), the licensing authority can suspend or cancel their manager's certificate, which prevents them from working as a duty manager.

Question 40: In NZ, what is the duty manager's responsibility regarding 'drink spiking' on licensed premises?

It is not a licensed premises responsibility — it is a Police matter only
The duty manager must test drinks for substances upon request
The duty manager must train staff to recognise signs of drink spiking and respond appropriately including contacting Police (Correct answer)
Only security staff are responsible for dealing with drink spiking

Correct answer: The duty manager must train staff to recognise signs of drink spiking and respond appropriately including contacting Police

Duty managers have a responsibility to ensure staff are trained to recognise and respond to suspected drink spiking, including contacting Police and ensuring the affected patron's safety.

Question 41: In NZ, what is the role of the Industry Association 'Hospitality New Zealand' in the host responsibility framework?

Hospitality NZ develops best practice guidance, training programmes, and industry standards to support licensees in meeting their host responsibility obligations (Correct answer)
Hospitality NZ issues manager's certificates as an alternative to the DLC process
Hospitality NZ enforces licence conditions on behalf of the DLC
Hospitality NZ adjudicates complaints from patrons against licensed premises

Correct answer: Hospitality NZ develops best practice guidance, training programmes, and industry standards to support licensees in meeting their host responsibility obligations

Hospitality New Zealand is the peak industry body that develops best practice guidance, training materials, and standards to help licensees and managers meet and exceed their legal host responsibility obligations.

Question 42: Under the Sale and Supply of Alcohol Act 2012, which licence type allows alcohol to be consumed in a vehicle that is a conveyance (e.g., a train or ferry) in NZ?

Conveyance licence (Correct answer)
Club licence
On-licence
Off-licence

Correct answer: Conveyance licence

A conveyance licence authorises the sale and supply of alcohol on a vehicle used for public transport, such as a ferry, train, or aircraft, for consumption on board.

Question 43: What are the specific conditions that typically attach to a club licence in NZ?

Club licences have no specific conditions beyond standard on-licence rules
Only beer and wine can be served under a club licence
A club licence allows sale to anyone who walks through the door
Alcohol can only be supplied to authorised members, their guests, and at club events — not sold to the general public (Correct answer)

Correct answer: Alcohol can only be supplied to authorised members, their guests, and at club events — not sold to the general public

A club licence authorises the supply of alcohol to club members and their guests, and at events held by the club. It cannot be used to sell alcohol to the general public. Members must be bona fide members of the club.

Question 44: Under NZ law, can a licensed premises use social media to promote a 'drink and win' competition where alcohol consumption is the competition?

Yes — social media is not covered by the Alcohol Advertising and Promotions Code
Yes, as long as the post includes an age-verification step
Only if the competition is restricted to persons aged 25 and over
No — such a promotion would likely breach the prohibition on irresponsible promotions regardless of the medium used (Correct answer)

Correct answer: No — such a promotion would likely breach the prohibition on irresponsible promotions regardless of the medium used

A 'drink and win' competition where winning is based on the amount or speed of alcohol consumed would be an irresponsible promotion under the Act and the ASA Code, regardless of whether it is promoted on social media.

Question 45: What is the primary purpose of the Sale and Supply of Alcohol Act 2012?

To regulate the sale, supply, and consumption of alcohol in New Zealand (Correct answer)
To control alcohol advertising on television
To set minimum prices for alcohol products
To ban alcohol consumption in public places

Correct answer: To regulate the sale, supply, and consumption of alcohol in New Zealand

The Sale and Supply of Alcohol Act 2012 exists to regulate the sale, supply, and consumption of alcohol in New Zealand with the aim of minimising harm caused by excessive or inappropriate consumption.

Question 46: In NZ, can a licensee object to the fee assessment for their licensed premises?

Yes, but only through the High Court
No — fee assessments are final once made
Yes — the licensee can request a review of the fee band assessment if they believe their risk profile has been incorrectly assessed (Correct answer)
Only if the fee has increased by more than 20% from the previous year

Correct answer: Yes — the licensee can request a review of the fee band assessment if they believe their risk profile has been incorrectly assessed

Under the Fees Regulations, a licensee can apply for a review of their fee band assessment if they believe they have been placed in the wrong band based on their trading profile.

Question 47: What is required for a person to obtain a manager's certificate for the first time in NZ?

Completion of the LCQ or equivalent, industry experience, and a fit and proper person assessment (Correct answer)
Only a clear police record is required
At least 5 years of bar work experience
Approval from the current premises licensee only

Correct answer: Completion of the LCQ or equivalent, industry experience, and a fit and proper person assessment

To obtain a manager's certificate, an applicant must have completed the LCQ or equivalent qualification, have relevant industry experience, be a fit and proper person, and be at least 18 years old.

Question 48: In NZ, what power does a Licensing Inspector have when visiting a licensed premises?

To issue on-the-spot cancellation of the licence
To close the premises immediately for any breach observed
To enter and inspect the premises at any reasonable time, examine records, and require the production of the licence (Correct answer)
To arrest the duty manager for any breach

Correct answer: To enter and inspect the premises at any reasonable time, examine records, and require the production of the licence

Licensing Inspectors have the power to enter licensed premises at any reasonable time, inspect the premises, examine any relevant records, and require the licence to be produced.

Question 49: In NZ, what must a duty manager do if a patron becomes violent or threatening on the licensed premises?

Only contact Police — staff must not intervene in violent situations
Immediately close the premises and ask all patrons to leave
Remove alcohol service from the patron, attempt to de-escalate, remove the patron if safe to do so, and contact Police if necessary (Correct answer)
Personally restrain the patron until Police arrive

Correct answer: Remove alcohol service from the patron, attempt to de-escalate, remove the patron if safe to do so, and contact Police if necessary

The duty manager must stop alcohol service to the person, attempt de-escalation, arrange for removal from the premises where safe, and contact Police if the situation warrants it.

Question 50: Under the NZ Act, what must a special licence application specify regarding the type of alcohol to be sold?

Only spirits sales require specification — beer and wine are covered by default
The application must specify the types of alcohol to be sold — the licence is limited to those types (Correct answer)
All special licences cover all types of alcohol automatically
The types of alcohol can be changed after the licence is granted without DLC approval

Correct answer: The application must specify the types of alcohol to be sold — the licence is limited to those types

A special licence application must specify the types of alcohol intended to be sold. The licence only authorises the types of alcohol specified — selling other types would breach the licence.

Question 51: In NZ, what is the maximum penalty for allowing an intoxicated person to remain on licensed premises?

Automatic cancellation of the licence
A fine of up to $2,000
$10,000 fine for the licensee and $4,000 for the duty manager (Correct answer)
A warning letter only

Correct answer: $10,000 fine for the licensee and $4,000 for the duty manager

Allowing an intoxicated person to remain on licensed premises can result in a fine of up to $10,000 for the licensee and up to $4,000 for the duty manager.

Question 52: Under NZ law, what is an 'endorsement' on an off-licence?

Approval to extend trading hours beyond the default maximum
An authority allowing the sale of specific types of alcohol not normally covered by the base licence (Correct answer)
A positive review recorded by the DLC
A penalty note added by a Licensing Inspector after a breach

Correct answer: An authority allowing the sale of specific types of alcohol not normally covered by the base licence

An endorsement is an additional authorisation on a licence, such as an off-licence endorsement that allows a restaurant to sell takeaway alcohol, or a BYO endorsement allowing customers to bring their own wine.

Question 53: Under the Sale and Supply of Alcohol Act 2012, what is 'intoxication' legally defined by in NZ?

Observable signs such as slurred speech, loss of coordination, or aggressive behaviour (Correct answer)
A breathalyser reading taken by Police on the premises
A specific blood alcohol concentration of 0.08 or above
A formal assessment by a medical officer

Correct answer: Observable signs such as slurred speech, loss of coordination, or aggressive behaviour

The Act does not define intoxication by a specific BAC figure. Instead, duty managers must assess observable behavioural signs such as slurred speech, impaired balance, or aggressive behaviour.

Question 54: Under NZ law, which forms of identification are acceptable as proof of age for purchasing alcohol?

Any government-issued document with a photo
Any photo ID including student ID cards
Only a current New Zealand driver licence
New Zealand driver licence, New Zealand passport, Kiwi Access Card, or overseas passport only (Correct answer)

Correct answer: New Zealand driver licence, New Zealand passport, Kiwi Access Card, or overseas passport only

The approved proof-of-age documents under the Act are a NZ driver licence, a NZ or overseas passport, or a Kiwi Access Card (18+ card). Student IDs and other photo IDs are not approved.

Question 55: 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?

$200,000
$20,000
$100,000 (Correct answer)
$40,000

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.

Question 56: Under NZ law, what does the term 'irresponsible promotion' of alcohol refer to?

Any promotion that encourages, induces, or has the likely effect of encouraging excessive or rapid alcohol consumption (Correct answer)
Offering a student discount on alcohol
Advertising alcohol on television before 9 pm
Advertising alcohol near a school

Correct answer: Any promotion that encourages, induces, or has the likely effect of encouraging excessive or rapid alcohol consumption

An irresponsible promotion is one that encourages people to consume alcohol excessively or rapidly, such as 'drink all you can' events, competitions involving drinking speed, or extreme discount deals targeting rapid consumption.

Question 57: In NZ, what is the purpose of the 'object of the Act' set out in section 4 of the Sale and Supply of Alcohol Act 2012?

To maximise tax revenue from alcohol sales
To prohibit alcohol sales to persons under 18
To provide for a system under which alcohol may be sold and supplied responsibly with the aim of minimising alcohol-related harm (Correct answer)
To regulate the importation of alcohol into New Zealand

Correct answer: To provide for a system under which alcohol may be sold and supplied responsibly with the aim of minimising alcohol-related harm

Section 4 states the object of the Act: to establish a system where alcohol can be sold and supplied in a way that is responsible and minimises harm to individuals and the community.

Question 58: Under NZ law, what is the purpose of the 'provisional local alcohol policy' (PLAP) in the renewal process?

A PLAP may be taken into account by the DLC as a relevant consideration when making renewal decisions, even before full adoption (Correct answer)
A PLAP applies only to new licence applications, not renewals
A PLAP has no effect on licence renewals — only adopted LAPs apply
A PLAP automatically suspends all licence renewals in the district until it is adopted

Correct answer: A PLAP may be taken into account by the DLC as a relevant consideration when making renewal decisions, even before full adoption

Once notified, a provisional LAP is a relevant matter that the DLC may take into account when making licensing decisions, even before it is finally adopted.

Question 59: Under NZ law, what is 'host responsibility' in the context of licensed premises?

A voluntary industry code with no legal standing
The obligation to provide a safe physical environment complying with building codes
The obligation on licensees and duty managers to actively minimise alcohol-related harm through responsible service and management practices (Correct answer)
The legal liability of the premises owner for any injury on the property

Correct answer: The obligation on licensees and duty managers to actively minimise alcohol-related harm through responsible service and management practices

Host responsibility is the legal and ethical obligation of licensees, managers, and staff to actively manage the service of alcohol responsibly — including monitoring patron welfare, preventing intoxication, and intervening when harm is likely.

Question 60: Under NZ law, what is the maximum period for which a manager's certificate can be suspended by ARLA or the DLC?

12 months
Until the next renewal date
6 months
There is no maximum — suspension duration is at the DLC/ARLA's discretion (Correct answer)

Correct answer: There is no maximum — suspension duration is at the DLC/ARLA's discretion

The Act does not specify a maximum duration for a suspension — the DLC or ARLA determines the appropriate period based on the seriousness of the conduct.

LCQ Licence Controller Qualification Exam

The New Zealand Licence Controller Qualification (LCQ) Exam tests knowledge required for duty managers under the Sale and Supply of Alcohol Act 2012, covering host responsibility, licence types, intoxication management, compliance, enforcement powers, and responsible service practices.

Questions

60 min

Time Limit

80%

To Pass

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