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.
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
(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.
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.
Tenn. Comp. R. & Regs.
certified June 7, 1974. Repeal filed September 9, 1983; effective October 11,
1983. Repeal and new rules filed March 10, 2010; effective June 8, 2010. Repeal
and new rules filed January 25, 2019; to have become effective April 25, 2019.
However, the Government Operations Committee filed a 60-day stay of the
effective date of the rules; new effective date
Authority: T.C.A. §§
57-1-209, 57-3-104, 57-3-302, 57-3-303, 57-4-201, and 57-818.