State RegulationsTN specificDifficulty 3/5
Two months after a business entity's member takes over with a temporary producer license following the designated producer's death, the entity sells and disposes of the business. What is the effect on the temporary producer license?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
T.C.A. § 56-6-111 provides that a temporary producer license may not continue after the business for which it was issued is disposed of. The license exists only to bridge the gap created by the producer's death or disability while the entity's future is decided; once the business is sold, the reason for the bridge is gone and the temporary license ends, even if 180 days have not yet run.
Why the other options are wrong
- A) The 180-day maximum is a ceiling, not an entitlement; disposal of the business cuts the term short under T.C.A. § 56-6-111.
- C) There is no automatic conversion — a regular license requires its own qualification, application, and any examination.
- D) The license ends by operation of the statute upon disposal of the business; it does not linger until affirmatively revoked.
Memory hook
Sell the shop, lose the bridge: disposal ends the temporary license.