Liquor license holders are strictly liable for illegal on-premises drug activity by their employees, despite their efforts to police their establishments by surveillance cameras and other means, the New Jersey Supreme Court ruled on Wednesday.

The ruling, in Division of Alcoholic Beverage Control v. Maynards Inc., A-120-05, means a Margate, N.J., restaurateur will have his liquor license suspended because an employee was discovered selling cocaine in the restroom on six occasions.

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