Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 17

Licensing Statutes. State X requires that persons who prepare and serve liquor in the form of drinks at commercial establishments be licensed by the state to do so. The only requirement for obtaining a yearly license is that the person be at least twenty-one years old. Mickey, aged thirtyfive, is hired as a bartender for the Southtown Restaurant. Gerald, a staunch alumnus of a nearby university, brings twenty of his friends to the restaurant to celebrate a football victory one afternoon. Gerald orders four rounds of drinks, and the bill is nearly $600. When he learns that Mickey has failed to renew his bartender's license, Gerald refuses to pay, claiming that the contract is unenforceable. Discuss whether Gerald is correct. (See page 278.)