What can happen to an establishment's liquor license for violating laws?

When an establishment violates liquor laws, the implications for its liquor license can be quite serious. The correct answer highlights that the license may be suspended or revoked. This means that if the establishment fails to comply with state regulations or engages in illegal activities related to alcohol service, the Arizona Department of Liquor Licenses and Control has the authority to impose penalties that could temporarily suspend the license or permanently revoke it.

Suspension typically means the establishment must cease all alcohol sales for a specified period, while revocation means the business permanently loses the right to serve alcohol under that license. Maintaining compliance with liquor laws is essential for the operation of any business holding a liquor license, as the consequences of violations extend beyond fines and can compromise the establishment's ability to operate.

The other options present scenarios that are not valid in the context of violations. For instance, a license will not always be renewed if there are violations, nor can a license be transferred or upgraded in circumstances that have legal breaches. Each of these aspects stresses the importance of adhering to laws governing alcohol sales, as it directly ties to the integrity and sustainability of the business's liquor license.