Warwick Academy had dropped its objection.

An out-of-court agreement with several conditions attached has been reached between Giant and the secondary school's Board of Trustees, the supermarket's lawyer Mr. Alan Dunch said.

Mr. Dunch further said Giant would be producing a survey conducted by a local research company on issues of concern to the objectors and the Liquor Licencing Authority, which disputed claims that loitering and littering increased around liquor stores.

Warwick Academy's main concern had been underage consumption of liquor and its accessibility to students.

Warwick Academy was the principal objector to Giant selling liquor, but three area residents have also opposed the bid.

Their lawyer Mr. Kim White argued on the first day of a fiery hearing that they were fed up with having to come before the Authority to stop Giant getting a licence.

Amid heated exchanges with Mr. Dunch, Mr. White accused Giant of trying to defeat the objectors by making repeated applications.

His clients could not afford to keep coming back to Magistrates' Court, he said.

"They want to know when it's going to stop,'' he said. "Surely they don't have the right to reopen the issue yet again.'' He did not believe circumstances had changed that much.

But Mr. Dunch countered that among other changes, the store's proposal for the location of the liquor booth had changed and an objection had been withdrawn.

Either way, he said: "The applicant has an absolute right to come before you time and time again.'' The battle wound up before the Authority for a second time after the Court of Appeal ordered a fresh hearing.

Giant went to the Court of Appeal after the Supreme Court sided with the Authority in denying the licence.

Mr. Dunch said apart from Warwick Academy withdrawing its objection, Giant had moved the proposed liquor sales booth to the back of the store.

He said Police were not objecting, provided a provisional licence was sought, which was the case.

Mr. Dunch said Police would agree to a full licence once construction of the booth was complete. Liquor would be delivered through a back door and the booth would have a separate cashier.

He added it had been agreed with Warwick Academy that Giant would lease the vacant lot from the school and assume responsibility for policing it. The school was concerned that loiterers would gather in the lot.

And Giant promised to take "all reasonable measures'' to prevent the sale of liquor to students, such as demanding proof of age from customers. In the event a student tried to buy alcohol, they would be reported to the headmaster.

Giant president and majority shareholder Mr. George Whitecross testified he was re-applying for a liquor licence because of customer pressure.

His customers were complaining they were inconvenienced by having to go elsewhere to get liquor.

"We get numerous and continuous complaints, especially from tourists,'' he said. "They walk in and say `where's the beer -- you don't have beer!' and walk out the door.'' He said there were only three places to buy liquor in Warwick, which was the least of all the parishes.

And though cold beer and wine would be sold, he said he was considering barring the sale of single bottles or cans.

In answer to a question from Authority chairman the Wor. Will Francis, he said the store would be selling liquor miniatures.

The hearing continues today before the three-member Authority.