Terms Used In Michigan Laws 436.2014

  • Alcohol: means the product of distillation of fermented liquid, whether or not rectified or diluted with water, but does not mean ethyl or industrial alcohol, diluted or not, that has been denatured or otherwise rendered unfit for beverage purposes. See Michigan Laws 436.1105
  • Alcoholic liquor: means any spirituous, vinous, malt, or fermented liquor, powder, liquids, and compounds, whether or not medicated, proprietary, patented, and by whatever name called, containing 1/2 of 1% or more of alcohol by volume that are fit for use for food purposes or beverage purposes as defined and classified by the commission according to alcoholic content as belonging to 1 of the varieties defined in this chapter. See Michigan Laws 436.1105
  (1) An on-premises licensee shall not sell, offer to sell, or advertise the sale of an unlimited quantity of alcoholic liquor at a specific price unless all of the following conditions are met:
  (a) The sale, offer, or advertisement is in connection with a private function.
  (b) The on-premises licensee has entered into a written agreement with the organizer of the private function stating all of the following:
  (i) The date and time the event will be held.
  (ii) The location of the event.
  (iii) The terms under which alcohol will be sold and served during the event.
  (c) The on-premises licensee makes available to the commission and local law enforcement, on notice, the written agreement described in subdivision (b).
  (2) An on-premises licensee shall not sell, offer to sell, or advertise the sale of 3 or more identical drinks containing alcoholic liquor to an individual for the individual’s consumption for 1 price. If 3 or more identical drinks containing alcoholic liquor are served to an individual at 1 time, the price charged for the third and each additional drink must be the same as the price charged for the first drink. Except on prior written order by the commission, an on-premises licensee shall not sell alcoholic liquor to an individual under this subsection for a price that is less than the on-premises licensee’s cost for the alcoholic liquor.
  (3) As used in this section, “private function” means an event that meets all of the following conditions:
  (a) It is a prearranged private party, private function, or private event for a specific social or business occasion.
  (b) Attendance is only by invitation or reservation.
  (c) It is not open to the general public.
  (d) The guests are served in an outdoor service area or room that is well-defined and clearly marked and designated and used exclusively for the event.