Legal Question in Business Law in California

Wine broker question.

I am currently helping my customers in China to purchase California wine, I added my mark-up price to the winery's price, and my customer will pay the winery. Then I will invoice the winery for the mark-up. Do I really need a license to be a wine broker. I read some info from TTB, it said if I am not taking possession of the wine, then I don't need it. I am just facilitating the process and getting paid by the mark-up fee.


Asked on 11/29/10, 6:23 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You probably need a California license. The Business & Professions Code contains specific law referring to licensing of wine brokers. For example, the text of B&P Code 23377 says:

"A wine broker's license authorizes the person to whom issued to act as a wine broker, for a fee or commission, in the purchase of wine for or on behalf of a person within or without this State authorized to buy wine for purposes of resale and in the sale of wine for or on behalf of a person, other than a retail licensee, licensed to sell wine within the State. A wine broker shall not buy or sell any wine for his own account, take or deliver title to wine, or receive or store any wine in his own name in this State. A wine broker shall not offer to sell, agree to offer to sell, or sell any wine unless he first has a bona fide authorization to do so from a person, other than a retail licensee, licensed to sell wine in this State. A wine broker shall not offer to buy, agree to buy, agree to offer to buy, or buy any wine unless he first has a bona fide authorization to do so from a person within or without this State authorized to buy wine for purposes of resale. The exercise of the privileges granted by the wine broker's license are subject to such rules and conditions as the department deems necessary and proper."

I don't know if the definition above includes what you do, but I recommend getting the license; I think the fee is $78 and it would be good window-dressing even if you could avoid requiring it based upon carefully skirting the covered activities.

I'm not sure whether you are required to have a Federal (TTB) license or not, but your opinion that you don't seems correct.

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Answered on 12/04/10, 7:12 pm


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