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Prohibition of Liquor in Michigan

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Since the alternative designs may assist the MLCC to reduce operational costs; and, it would be beneficial for the state government to earn more net profit from distilled liquor distribution. As discussed earlier, the private sector oriented proposed designs would be capable of providing price benefits to consumers throughout the state. Moreover, this system restructuring may be helpful for the consumer to get liquor products when they required. Similarly, a well structured distilled liquor distribution mechanism may assist the state of Michigan to exercise well control over retail licensees and thereby to effectively prevent illegal alcohol distribution and consumption.

However, changes in the existing liquor distribution system may raise some risks factors also. If the MLCC fails to effectively implement the designed alternatives, the distribution system restructuring process would adversely affect the profitability of the state of Michigan. When the government allows private sector participation in the distilled liquor distribution, it involves chances of fraud and other illegal activities. The cost of the system implementation may impose a huge burden on the MLCC once it is practiced ineffectively. Hence, the MLCC must be vigilant while selecting and implementing an alternative design for the existing liquor distribution system.

The historical conditions which the current liquor distribution system based are still important today. Historically, beer and wine are legally defined as fewer than 21 percent alcohol by volume whereas distilled spirits are defined as over 21 percent alcohol by volume (Case 5, given PDF). The traditional laws recommend that all distilled spirits have to be purchased by the state of Michigan. According to Michigan “ come-to-rest” laws, stocking and transportation of liquor in state bailment warehouses should be handled by state employees although any hotel or established merchant can sell packaged liquor.

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