Ark. Code Ann. » Title 3 Chapter 03
Arkansas Code Annotated

Ark. Code Ann. § 3-3-218 (2026)

Duty of care of privilege license holders — Enforcement

✓ current as of May 2026
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  1. It is the specifically declared policy of the General Assembly that all licenses issued to establishments for the sale or dispensing of alcoholic beverages are privilege licenses, and the holder of such privilege license is to be held to a high duty of care in the operation of the licensed establishment.
  2. It is the duty of every holder of an alcoholic beverage permit issued by the State of Arkansas to operate the business wherein alcoholic beverages are sold or dispensed in a manner which is in the public interest and does not endanger the public health, welfare, or safety. Failure to maintain this duty of care shall be a violation of this section and grounds for administrative sanctions being taken against the holder of the permit or permits.
    1. The standard of review for the Director of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board in matters arising herein shall be:
      1. Whether the permitted outlet, as it has been operated, promotes the public convenience and advantage;
      2. Whether the continuation of the outlet would promote the public interest; and
      3. Whether the outlet's business operation endangers the public health, welfare, or safety of the area or community in which it is located.
    2. It is specifically granted to the director and the board the power to review the outlet and its operation as if it were a new application, taking into consideration all factors involved in the review of an application as initially filed before the agency.
    1. As to all violations occurring inside the permitted premises, the standard of proof shall be by substantial evidence.
    2. As to all violations occurring outside the permitted premises, the standard of proof shall be by clear and convincing evidence.
  5. The Alcoholic Beverage Control Division and its board are hereby authorized to adopt rules to implement each and every provision of this section.
  6. The director and the board are empowered by this section to administer the full range of penalties available for other administrative proceedings before it, including, but not limited to, fines, suspension, cancellation, or revocation of such permits which have been found to endanger the public health, welfare, or safety.

History. Acts 1989, No. 695, § 1; 2003, No. 1756, § 1; 2019, No. 315, § 44.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (e).

Case Notes

Civil Liability.

This section and §§ 3-4-803 and 3-3-202 create a duty for licensees to exercise a high standard of care for the protection of minors, and a breach of this duty can lead to a suit for negligence. Shannon v. Wilson, 329 Ark. 143, 947 S.W.2d 349 (1997).

Section 3-3-209 and this section establish a high duty of care on the part of holders of alcohol licenses, which includes the duty not to sell alcohol to high-risk groups, including intoxicated persons, and evidence of the sale of alcohol by a licensed vendor to an intoxicated person is some evidence of negligence. Jackson v. Cadillac Club, Inc., 337 Ark. 24, 986 S.W.2d 410 (1999).

Cited: Branscumb v. Freeman, 360 Ark. 171, 200 S.W.3d 411 (2004); Brennan v. White Cty., 2019 Ark. App. 146, 573 S.W.3d 577, cert. denied, 205 L. Ed. 2d 220 (U.S. 2019).

Notes of Decisions
Cited in 9 cases (1 in the last 5 years), 1997–2022 · leading case: Jackson v. Cadillac Cowboy, Inc., 986 S.W.2d 410 (Ark. 1999).
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Jackson v. Cadillac Cowboy, Inc., 986 S.W.2d 410 (Ark. 1999). · cites it 22× “I dissent because I believe that the Arkansas General Assembly did not intend to create civil liability for vendors of alcoholic beverages with the passage of Act 695 of 1989, codified as Ark.”
Shannon v. Wilson, 947 S.W.2d 349 (Ark. 1997). · cites it 8× “Ark. Code Ann. § 3-3-218 (a) (Repl. 1996).”
Cadillac Cowboy, Inc. v. Jackson, 69 S.W.3d 383 (Ark. 2002). · cites it 4× “Acts 695 (codified at Ark. Code Ann. § 3-3-218 (a) & (b) (Repl.”
Archer v. Sigma Tau Gamma Alpha Epsilon, Inc., 362 S.W.3d 303 (Ark. 2010). · cites it 4× “1996); Ark.Code Ann. § 3-3-218 (Repl.1996); Ark.”
Branscumb v. Freeman, 200 S.W.3d 411 (Ark. 2004). · cites it 2× “We concluded that the high duty of care imposed by the legislature on licensed alcohol vendors, as expressed in Ark. Code Ann. § 3-3-218 (a) & (b) (Repl.”
Cent. Oklahoma Pipeline, Inc. v. Hawk Field Servs., LLC, 400 S.W.3d 701 (Ark. 2012). · cites it 2× “We concluded that the high duty of care imposed by the legislature on licensed alcohol vendors, as expressed in Arkansas Code Annotated section 3-3-218(a) & (b) (Repl.1996), was sufficient for us to create an individual cause of action for its violation.”
Brennan v. White Cnty., 573 S.W.3d 577 (Ark. Ct. App. 2019). · cites it 4× “" Indeed, *582 Arkansas Code Annotated section 3-3-218(a) provides, "It is the specifically declared policy of the General Assembly that all licenses issued to establishments for the sale or dispensing of alcoholic beverages are privilege licenses[.”
City of Ashdown, Arkansas v. Netflix, Inc., 52 F.4th 1025 (8th Cir. 2022). “1997) (quoting Ark. Code Ann. § 3-3-218 (a)) (establishing liability for negligence in selling alcohol to a minor); see also Jackson v.”
Tackett v. Merch.'s Sec. Patrol, 44 S.W.3d 349 (2001). “The legislation, codified at Ark. Code Ann. § 3-3-218 (a) and (b) (Repl.”
— Ark. Code Ann. § 3-3-218(a) — 6 cases
Shannon v. Wilson, 947 S.W.2d 349 (Ark. 1997). “Ark. Code Ann. § 3-3-218 (a) (Repl. 1996).”
Jackson v. Cadillac Cowboy, Inc., 986 S.W.2d 410 (Ark. 1999). “I dissent because I believe that the Arkansas General Assembly did not intend to create civil liability for vendors of alcoholic beverages with the passage of Act 695 of 1989, codified as Ark.”
Cadillac Cowboy, Inc. v. Jackson, 69 S.W.3d 383 (Ark. 2002). “Acts 695 (codified at Ark. Code Ann. § 3-3-218 (a) & (b) (Repl.”
Cent. Oklahoma Pipeline, Inc. v. Hawk Field Servs., LLC, 400 S.W.3d 701 (Ark. 2012). “We concluded that the high duty of care imposed by the legislature on licensed alcohol vendors, as expressed in Arkansas Code Annotated section 3-3-218(a) & (b) (Repl.1996), was sufficient for us to create an individual cause of action for its violation.”
Archer v. Sigma Tau Gamma Alpha Epsilon, Inc., 362 S.W.3d 303 (Ark. 2010). “1996); Ark.Code Ann. § 3-3-218 (Repl.1996); Ark.”
— Ark. Code Ann. § 3-3-218(b) — 1 case
Jackson v. Cadillac Cowboy, Inc., 986 S.W.2d 410 (Ark. 1999). “I dissent because I believe that the Arkansas General Assembly did not intend to create civil liability for vendors of alcoholic beverages with the passage of Act 695 of 1989, codified as Ark.”
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