In State X, persons must be at least 18 yrs old before they can purchase alcoholic beverages. The state also has passed a law requiring that person who prepare and serve liquor in the form of drinks in commercial establishments be licensed. The only requirement for obtaining a yearly license is that the person be at least 18 years old. Moffitt, aged thirty-five, is hired as a bartender for Lone Star Restaurant. Bekins, an alumnus of State X University, brings twenty of his friends to the restaurant to celebrate State X U's football victory. Bekins orders four rounds of drinks, and the bar bill exceeds $200. When Bekins learns that Moffitt has failed to renew his bartender's license, Bekins refuses to pay, claiming he contract is unenforceable. Is Bekins correct? Explain in DETAIL!
Contracts made with unlicensed persons may or may not be enforceable. There are basically two types of licensing statutes: those considered regulatory (designed to protect the public welfare from unauthorized and unqualified practitioners) and those who's underlying purpose is to raise revenues or whose control of practice is not tied to specific, required skills. Under the statutes declared regulatory, contracts made with an unlicensed person are illegal and unenforceable. For statutes declared other than regulatory, contracts are enforceable. In some cases, the statute itself expressly bars enforcement of contracts made with an unlicensed person. These statutes are obviously regulatory. For all other statues, the courts will look to the underlying purpose of the requirement of the license. In this case, it appears that the license requirement is not tied to any skill necessary for the protection of the welfare of society. The only requirement is that the person is at least 18 years old, but this is also the requirement for any person to be able to purchase liquors dispensed. Therefore, most courts would enforce the contract for the bar bill that Bekins owes but would rule Moffitt guilty of misdemeanor and impose a fine.