Joseph's of California v. Alcoholic Beverage Control Appeals Board

We have consolidated these two petitions because they raise certain common issues of law concerning the imposition of administrative penalties for violation of. the minimum price provisions of the Business and Professions Code relating to sales of wine. (Bus. & Prof. Code, § 24862). For the reasons set forth below, we annul the disciplinary order in case No. 38284, but sustain it in case No. 38510.

The facts are not here in question. In Civ. No. 38284, involving Joseph’s of California, a student clerk, as the result of an error in computation, sold a case of wine to an undercover agent of the Department of Alcoholic Beverage Control for 50 cents less than the established minimum price. Admittedly the price was fixed by error, the conduct was neither known to nor condoned by the licensee, and the licensee has conducted its business for over 15 years without any prior accusation of misconduct. The hearing officer recommended dismissal of the accusation, but the department rejected the recommendation and imposed a 10-day suspension, of which five days were stayed under certain conditions.

In Civ. No. 38510, involving Nick Williams, an employee of the licensee sold six…