Legal question

[Roadrash]

I've been to a lot of parties where alchohol is free, but you have to buy a mug, or an armband, or a punch-card or whatever in order to be served. I am assuming that this is a way around having to get a beer (or alchohol) license. Does anyone out there know how this works, is it legal, etc..
Respects,
Roadrash

[Si]

Most states require an establishment to obtain a liquor license to serve, how they do so doesn't matter.

When you are required to buy an armband, mug, or whatnot, at party, thats a way to control who gets alcohol and who doesn't and more importantly, to create a way to prevent serving alcohol to minors.

Si

[cecilbdml]

Roadrash is correct. In order for alcohol to be considered as 'served,' it has to be for profit, in a public environment. While the wristbands and other do-hickies CAN be sold without any business or other license, alcohol cannot be.

It CAN, however, be GIVEN in a private setting. That IS legal.

[TallDrink]

Had a friend opening a Bar in Dallas, before he got his liquor liscense we would pay $5 and just drink what we wanted. The others are correct, you can charge cover and server to those of legal age as long as you are not selling the alcohol itself. At least thats how it is in Texas.