Ever since Father Junipero Serra planted the first vineyard at the Mission Basilica San Diego de Alcalá, wine has been a part of California. Today, wine from California vineyards account for almost 90% of all U.S. wine production. So naturally, with so much industry here in California, problems are sure to follow. Thus, wine law has developed to address such issues.
All things surrounding wine has its own particular set of challenges, such as heavy government regulation, fierce competition both locally and internationally, contractual relations with various persons, and intellectual property issues. Planned precautionary measures now can minimize or avoid a lot of legal troubles later on. Unfortunately, when running any business, disputes will arise between your business and others, and therefore, wine law can be used as both a preventive tool as well as a protection for certain needs that may arise.
Wine law covers more than what most people realize. Here are some examples:
• Business formation: vineyard owners, wineries, retailers, and more may have certain business decisions to make such as what type of business formation to use (S Corp, LLC, partnership, etc.), business tax, fictitious business names, FIEN, and more.
• Alcoholic beverage licensing: both State (ABC) and Federal (TTB) government regulate alcohol, including new legislation and regulations.
• Trademark law: wine bottle labels are much more complex than they appear. A thorough trademark search should be conducted for every new bottle in production, and a strong trademark should be filed.
• Contracts and License Agreements: Many types of contracts, such as custom-crush agreements, on-premise event contracts, material purchases agreements, sales agreements, bottling contracts, and distribution agreements.
• Assist in land acquisition: land acquisition for vineyards or other uses related to wine is quite a complex process.
• Environmental law: issues from water management, waste control, endangered species, and storm water discharges.
• Hiring contractors for building or repair: wineries are often in the need of change, and hiring an independent contractor can open wineries up for potential liabilities.
• Employment law: issues such as labor management issues, pensions, wrongful discharge, civil rights, federal and state occupational safety laws, wage and hour laws, and workers' compensation.
• Tax law: whatever their specific tax accounting and filing regulations may control.
• Business Governance and Maintenance: website privacy, business filings, trademark review, advertising, unfair business practice checks, and antitrust review.
• Shipping Laws: interstate direct-to-customer shipping laws, self-distribution to retailers, and ecommerce issues.
• Compliance: wholesale compliance and importation compliance.
• Litigation: wineries are sometimes sued for a variety of reasons, often though related to all of the above issues.
Of course, this list is not conclusive, but it does convey the variety of what a wine lawyer would practice. I hope that this snapshot of wine law has opened your eyes to the tangled obstacles and complexity that is behind a simple bottle of wine.
For legal services, comments, or questions regarding this blog, please contact me at dwetton@lauruslaw.com.
www.lauruslaw.com
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