Which of the following is NOT an advantage of the 3-tier system?

Prepare for the Cicerone Level 2 Certification Exam with comprehensive flashcards and multiple choice questions. Each question is supported by hints and explanations. Get ready to excel!

The answer indicating that the 3-tier system ensures lower prices for consumers is correct because the primary focus of the 3-tier system is to regulate the distribution of alcohol and ensure responsible practices within the industry rather than to directly influence pricing.

The 3-tier system is designed to separate the production, distribution, and retail aspects of alcohol sales. This separation straddles the line between government interest in regulating alcohol consumption and ensuring fair practices among companies. While some might argue that this structure can lead to lower prices due to increased competition or efficiencies in distribution, it is not a guaranteed outcome. In fact, the added layers of regulation and the costs associated with maintaining compliance can sometimes lead to higher prices for consumers rather than lower ones.

The advantages of this system include protecting consumers from abusive practices, which can occur when producers have direct access to retail, ensuring fair competition among companies by preventing monopolistic practices, and simplifying tax collection for the state through clearer lines of accountability within the distribution process. Each of these factors serves broader regulatory and social purposes rather than focusing solely on price efficiency.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy