I. General Information

1. Course Title:
Legal Aspects of Vineyard and Winery Operations

2. Course Prefix & Number:
VITI 1202

3. Course Credits and Contact Hours:

Credits: 3

Lecture Hours: 3

4. Course Description:

This course will introduce students to the general concepts and issues relating to the creation and operation of a winery. The course will explain general legal concepts, outline business formation and operation concepts, discuss governmental agencies and regulation, and describe legal issues and areas specifically related to the operation of a winery.

5. Placement Tests Required:

Accuplacer (specify test):

No placement tests required

Score:

6. Prerequisite Courses:

There are no prerequisites for this course.

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

1. Course Equivalency - similar course from other regional institutions:

Missouri State, VIN 130 
Highland C.C., VIN 130

2. Transfer - regional institutions with which this course has a written articulation agreement:

The Viticulture and Enology Science and Technology Alliance (VESTA); Missouri State - West Plains; 2003

3. Prior Learning - the following prior learning methods are acceptable for this course:

• Military Experience
• CLEP
• Written
• Oral
• Demonstration
• Portfolio

III. Course Purpose

1. Program-Applicable Courses – This course is required for the following program(s):

Wine Business and Entrepreneurship, Certificate
Wine Business and Entrepreneurship, AAS

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Apply abstract ideas to concrete situations	Demonstrate specific knowledge of business formation and employee relations.
Apply ethical principles in decision-making	Demonstrate general knowledge of basic legal concepts affecting the operation of a winery and distribution of wine.

2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of the course:

• Demonstrate general knowledge of basic legal concepts affecting the operation of a winery and distribution of wine;
• Demonstrate general knowledge and understanding of the elements of contracts in general and the types of and provisions in contracts related to winery operation;
• Demonstrate specific knowledge of business formation and employee relations;
• Demonstrate specific knowledge of federal, state, and local agencies and organizations that affect winery operations;
• Demonstrate specific knowledge liability and site management issues that affect the operation of a winery;
• Demonstrate specific knowledge of the issues affecting the shipping and placement of wine by wineries for local, state, national, and international distribution;
• Demonstrate specific knowledge of labeling and marketing issues affecting wineries and the distribution of wine;
• Demonstrate specific knowledge of product protection and intellectual property issues that may affect the production and distribution of wine; and
• Demonstrate an understanding of the tax issues, entities, and requirements involved in the operation of a winery and the production of wine.

V. Topical Outline

Listed below are major areas of content typically covered in this course.

1. Lecture Sessions

1. Basic Legal Concepts
• Sources of law, including case law, statutes, administrative law, and constitutional law
• Federalism
• Jurisdiction and how various governmental and regulatory agencies can affect winery and vineyard operations
• Liability
• Insurance concepts and issues that affect vineyards and wineries
• Corporate structure
2. Real estate acquisitions, ownership, use, and construction
• Differences in real estate ownership and titles
• Easements and access
• Restrictions on use of land and buildings (e.g vineyard signage. zoning, permits)
• Related rights to ownership and use (e.g. mineral rights and leases)
• Water rights
• Waste management
• Issues related to construction in and for the vineyard (e.g. irrigation systems, tiling systems)
• Issues related to construction in and for the winery
• Issues related to special events use of vineyards and wineries
• Succession planning for ownership and operation of vineyards and wineries
• Tax aspects of real estate ownership
3. Contracts
• Essential elements of all contract
• Common types of contracts encountered in the operation of winery and vineyard
• Common provisions in contracts encountered in the operation of a winery and vineyard (e.g. financing, delivery, storage)
• Grower contracts
• Bulk purchase contracts
• Winery services (e.g. shipping, bottling) contracts
• Vineyard services (e.g. spraying, pruning, harvesting)
• Distribution contracts
• Supply contracts
• Consulting contracts
• Entertainment and special events contracts
• Enforcement options for breach of contract
• Potential effects of operating without contracts in place for various operational aspects of the vineyard and winer
4. Business Formation
• Characteristics of sole proprietorships
• Characteristics of general and limited partnerships
• Characteristics of limited liability partnerships
• Characteristics of corporations
• Characteristics of limited liability companies
• Characteristics of cooperatives
• Alternative business models, including “DBA” and other forms of operation
• Business entity effect on operations and licensing
• Tax issues related to the business entity utilized
5. Employee Relations
• Traditional employer/employee relationship
• Preferred general and  provisions of the employee contract
• Alternatives to the traditional employer/employee relationship, including the following: independent contractors, internships, volunteers, business invitees, migrant workers, family members, and seasonal assistance
• Liability issues related to the employment relationship and alternatives to the employer/ employee relationship
• Employer and Employee benefits and obligations related to the employee relationship and alternatives to the employer/employee relationship
• Issues related to incidental sales of other items at the vineyard or winery (e.g. gift shop merchandise)
• Tax issues related to the employment relationship
6. Federal, state, and local agencies and governing bodies that regulate and assist winery and vineyard operations
• Federal agencies and organizations
• State agencies and organizations
• Local agencies and organizations
• Local and municipal boards and commissions
• Relationship by and between agencies and organizations that regulate wineries and vineyards
• Issues and updates on the relationship by and between agencies and organizations and wineries and vineyards.
7. Interpret and apply liability and site management issues that affect the operation of a winery and vineyard
• Premises liability
• Americans With Disabilities Act;
• Dram shop and server liability
• Training and loss prevention issues related to premises and operations liability
• Insurance issues related to premises and operations liability
• Environmental issues related to winery operations (e.g. hazardous materials, fire, waste water, water resources)
• Environmental issues related to vineyard operations (e.g. pesticides, drift, fire)
• Impact of federal and state OSHA requirements on winery and vineyard operation
• Employment practices related to worker training and record keeping for operation of the vineyard or winery (e.g. licensing certifications, applications)
• Employment practices related to customer relations (e.g. sexual harassment)
8. Labeling and marketing of wine and grapes
• Alcohol and Tobacco Tax and Trade Bureau (TTB) role in labeling
• Relevant provisions of the Beverage and Alcohol Manual
• General requirements and restrictions on labels for wine
• Compliance issues related to labels and packaging of wine
• Prohibited practices related to labeling and packaging of wine
• Prohibited practices related to marketing of wine (e.g. Tied House rules)
• How state laws interact with the TTB regulations regarding labels and packaging
• COLA and labeling
• Record keeping requirements imposed by TTB and state agencies;
• Labeling restrictions
• Effect of social media use on marketing of wine
• Apply the above information in a creation of a simulated wine label
• Vineyard management practices that affect labeling (e.g. organic, sustainable, biodynamic)
9. Shipping and distribution of wine
• Reciprocity and distribution requirements
• Pre-Granholm distribution and sales environment for wineries and distribution
• Analysis of Granholm v. Heald and the legal effect of the decision on wineries and distribution
• Post-Granholm litigation and issues related to the regulation of distribution
• Three tier system
• State reactions to Granholm and its prodigy
• Current state and federal law issues relating to distribution, including state alternatives and requirements regarding distribution
• Types and nature of licenses that may be required to distribute and market wine
• Types and nature of licenses that may be required to operate a tasting room
• Differences that may apply to face to face and online sales
• Current issues related to the international sale and distribution of wine
• Tax issues related to the distribution of wine.
10. Intellectual property areas that may affect the production and distribution of grapes and wine
• General characteristics of  a copyright, patent, trademark, and protection of work product; use of recorded music and live bands (ASCAP, BMI)
• Copyright issues related to labels and production of wine
• Patent issues related to production of grapes and wine
• Ownership issues related to intellectual property
• Counterfeiting and illegal acts related to intellectual property for wine and wineries