16-3-504. Distributor financial interest in retailers prohibited.
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/mt/title-16/chapter-3/part-5/16-3-504A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
16-3-504 . Distributor financial interest in retailers prohibited. A distributor may not advance or loan money to or furnish money for or pay for or on behalf of any retailer any license or tax that may be required to be paid for any retailer. A distributor may not be financially interested, either directly or indirectly, in the conduct or operation of the business of a retailer. A distributor is considered to have a financial interest within the meaning of this section if:
(1)the distributor owns or holds any interest in or a lien or mortgage against the retailer or the retailer's premises;
(2)the distributor is under a contract with a retailer concerning future purchases or the sale of merchandise by one from or to the other; or
(3)a retailer holds an interest, as a stockholder or otherwise, in the business of the distributor.