Rules & Regulations of the State of Tennessee
Title 0100 - Alcoholic Beverage Commission
Chapter 0100-03 - Local Option Liquor Rules
Section 0100-03-.17 - RESPONSIBILITY AND PENALTIES FOR VIOLATIONS

(1) Employer Responsible for Employee's Action. Licensees are at all times responsible for the conduct of their businesses and are at all times directly responsible for any act or conduct of any employee which is in violation of the laws of Tennessee, the rules and regulations of the Commission, any local ordinance and/or any federal statute, whether the licensee be present at any such time or not. Any unlawful, unauthorized, or prohibited act on the part of an agent or employee shall be construed as the act of the employer, and the employer shall be liable as though he were present and had an active part in such unlawful, unauthorized, or prohibited act, and as if having been at the employer's direction and with his knowledge. Notwithstanding this provision, a licensee may present mitigating factors.

(2) In Disciplinary Action. In disciplinary proceedings, it shall be no defense that an employee or agent of a licensee acted contrary to order, or that a licensee did not personally participate in the violating action or actions - except as permitted under Rule 0100-05-.07.

(3) Avoidance of Tax Liability. Any manufacturer, importer, or representative of the same, and any wholesaler or retailer or employee of the same, who shall evade, or render direct or indirect assistance in the evasion of, the payment of the taxes imposed in T.C.A. §§ 57-3-302, 57-3-303, 57-4-301, and 57-6-201, or who shall violate, in any manner aid or abet, participate in any scheme to violate the local option law, or fail or neglect to comply with any regulations here in, shall be deemed to have given cause for suspension or revocation of his license, or permit, or if holding no license or permit, to have given cause for withdrawal or suspension of any privilege granted in Tennessee by the Commission in its discretion.