Perhaps you’ve identified a potential business partner whose business combined with yours makes practical sense while bringing a new and different business synergy. Maybe you and your new found partner have sketched out a few ideas of what role each of you intends to play in your newly planned business venture.

Conceptually, you may have wisely given consideration to formally executing a written Partnership Agreement. But before proceeding too quickly, you may want to consider another option. Ask yourself, is a Partnership Agreement really what you need?

Maintaining your own business autonomy while still collaborating with your new business partner can be achieved with a different choice. You may want to consider creating a different kind of business marriage by executing a Consulting Agreement.

Let’s say for example, that you’re a wine sommelier. You offer wine knowledge and expertise to a wide range of hospitality and wine business clients for a fee. Your new potential business partner wants to open a new food and wine bar, but lacks your knowledge and expertise of the wine industry. Combined the two of you decide your backgrounds are complimentary and together you can maximize your business opportunities.

However, you may not want to create a business relationship wherein together you share in the profits and losses of the newly conceived food and wine bar. Yet, you want to lend your expertise to the business, get compensated for those efforts, but still maintain your own separate autonomy for your own existing business. In this instance, executing a Consulting Agreement may be the right choice for this kind of business relationship.

Executing a Consulting Agreement allows you to define your terms in advance while assuring the other person that you will provide services to them in a professional manner. In these type of agreements, the responsibilities of the Consultant are defined in writing, identifying the expected work to be performed, anticipated compensation and payment schedules, start and end dates of the work, termination and dispute resolutions for the planned business arrangement.

The Consulting Agreement can set forth whether the Consultant will work exclusively for a single client and in what markets or territories. The Consulting Agreement is also a good vehicle to use to determine whether you and the other party can have a happy business marriage without the financial investment risks that often comes with forming a partnership.

So, when that next proposal for a business marriage with another presents itself, consider whether your winery, wine, event planning or hospitality based business really needs a Partner or a Consultant.

It’s horrible to be in a position wherein despite the fact my daughter suffered a brain hemorrhage, short term memory loss, a fractured skull, broken nose, broken ribs, loss of teeth, and deep facial lacerations, I was relieved to hear the words “she’s on a ventilator, but is expected live”. Two surgeries later, our family is blessed to have her home and recuperating. While her total healing process is expected to take 12-18 months, there are huge economic and emotional losses to recover from as well.

After having lived through this dreadful experience, spending many nights at her hospital bedside and wondering what words of comfort to offer her children who looked to me for words of hope, I am compelled now to post for the benefit of my winery, restaurant, and hospitality business readers how you may protect your business and life’s work from the risks and hazards that come from dealing with visibly intoxicated persons who senselessly create liability for your business. If you do not want to be in a position of having to “lawyer up”, let’s now visit what is important for you to know.

The Dram Shop Law in Pennsylvania makes it unlawful to serve liquor, malt, or brewed beverages to “any person visibly intoxicated”. Dram Shop is third party liability law which makes it possible for 2nd and 3rd parties to sue any person for a death, injury, or property damage. Establishments licensed to sell and serve alcohol are commonly referred to as “dram shops”. These establishments or “dram shops” are liable to third parties for damages inflicted by customers of the establishment, if the customer was sold, furnished or given liquor by the establishment when the customer was visibly intoxicated when served. Selling alcohol to a minor, selling to a visibly intoxicated person, selling alcohol after hours, or selling without a liquor license is unlawful in Pennsylvania. This Dram Shop statute is designed to protect the public at large as well as the person who consumes the alcohol.

If you’re a winery owner on a wine trail for example, and a VIP or “visibly intoxicated person” comes to your winery as well as several other wineries on the trail, and is involved in an automobile accident resulting in an injury to a third party, you and your business are now in the “hot seat”. The same is true if you are a restaurant or bar owner serving bar-hopping patrons who later leave in a drunken state, and kill themselves and or others. Because your establishment can be held liable for injuries it is in your best interest to be diligent in ensuring that intoxicated persons are not served more alcohol. In order for liability to attach, you must have actual knowledge or notice of a customer’s condition before liability is imposed. Thus its important to have your servers trained in alcohol awareness and to teach your staff the obvious signs of intoxication such as staggering, slurring words, loud speech, drinking too fast, etc. and even the more subtle signs that the untrained eye might not see. This kind of evidence helps to dispel the implication that a patron was served while visibly intoxicated.

The Pennsylvania Liquor Control Board created the Responsible Alcohol Management Program (RAMP) to help liquor licensees and their employees to serve alcohol responsibly. Ramp offers advice to restaurants, winery owners, hotels, clubs, distributors and special permit occasion holders to learn to avoid unnecessary liability and to detect signs of impairment and intoxication.

So as to avoid having your winery or hospitality business “lawyer up” in the face of such dreadful outcomes at the hands of intoxicated persons, protect your business and your life’s work by being vigilant in the sale of alcohol and the persons you hold accountable for seeing that your patrons drinking responsibly.

Lehigh Valley Wine Trail Association.

We used our time together having a very healthy exchange discussing Pennsylvania’s Dram Shop Law. We discussed issues of premise liability and its impact on winery and vineyard owners. In Pennsylvania, the laws that govern servers of alcohol, if violated can result in very costly lawsuits. Thus, the manner in which each winery owner can best protect themselves in various environments including the tasting room, wine festivals, wine events, tour group events and commercial carriers can be very complex waters to navigate. Too, we considered how managing potential risks and hazards can be minimized with proper training and knowledge in order to avoid unlawful acts of alcohol service to “minors” or “any person visibly intoxicated”.

The Lehigh Valley Wine Trail Association is home to nine family owned vineyards and wineries located in eastern Pennsylvania. Designated an American Viticultural Area (AVA) in 2008, Lehigh Valley is Pennsylvania’s fasting growing wine region in the state.

The Lehigh Valley Winemakers include:

Amore Vineyards & Winery
Franklin Hills Vineyard
Sorrenti’s Cherry Valley Vineyards
Big Creek Vineyard and Winery
Galen Glen Vineyard and Winery
Blue Mountain Vineyards & Cellars, Ltd.
Pinnacle Ridge
Clover Hills Vineyards & Winery
Vynecrest Vineyards & Winery

I found the Lehigh Valley Wine Trail Association membership to be very proactive in their efforts to keep abreast of new trends and changes in the law so as to conduct their winery and vineyard operations as responsible licensees in their community.

Pennsylvania is home to 11 wine trails throughout the state. This year, as your wine trail association gathers to meet and exchange ideas, you too may want to start your year anew considering how best to protect your winery operations as responsible licensees in your community.

As you usher in your new year and embark upon your Pennsylvania wine country travels, perhaps you’ll head out to eastern Pennsylvania and check out the wineries on the Lehigh Valley Wine Trail. I’m certain you’ll have a wonderful wine experience.

Thank you again Lehigh Valley Wine Trail Association for the opportunity to meet and speak with you.

Happy New Year to you all!

The PLCB is now going high tech in its plans to distribute alcohol in the state.  Over 100 Pennsylvania grocery stores are anticipated to get the state’s new self serve wine dispensing kiosks operated by the Pennsylvania Liquor Control Board.  Buyers will have to swipe their drivers license and breathe in a breathalyzer prior to purchase.

Are you planning to help yourself to some wine at your local supermarket? If so, for more information read here: Wine Vending Machine Coming To Supermarket.