§37A-3-119. Business interests and acts prohibited for
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manufacturer, wine and spirits wholesaler, beer distributor, person authorized to sell alcoholic beverages to a wholesaler and others.
It shall be unlawful for any manufacturer, brewer, wine and spirits wholesaler, beer distributor or person authorized to sell alcoholic beverages to a wholesaler, or any employee, officer, director, stockholder owning fifteen percent (15%) or more of the stock, any type of partner, manager, member or agent thereof, to directly or indirectly:
1. Have any financial interest in any premises upon which any alcoholic beverage is sold at retail or in any business connected with the retailing of alcoholic beverages; provided, nothing in this act shall prohibit the operation of a mixed beverage licensee, beer and wine licensee or caterer licensee by an entity which has common owners with the holder of a small brewer license or a brewpub license;
2. Lend any money or other thing of value, or to make any gift or offer any gratuity, to any package store, retail wine, retail beer, mixed beverage, beer and wine, public event or bottle club licensee or caterer;
3. Guarantee any loan or the repayment of any financial obligation of any retailer, mixed beverage, beer and wine, public event or bottle club licensee or caterer;
4. Require any wine and spirits wholesaler, beer distributor, retailer, mixed beverage, on-premises beer and wine licensee, public event or caterer to purchase and dispose of any quota of alcoholic beverages, or to require any retailer to purchase any kind, type, size, container or brand of alcoholic beverages in order to obtain any other kind, type, size, container or brand of alcoholic beverages;
5. Sell to any retailer, mixed beverage, on-premises beer and wine licensee, public event or caterer any alcoholic beverage on consignment, or upon condition, or with the privilege of return, or on any condition other than a bona fide sale; provided, the following shall not be considered a violation of this paragraph:
a. delivery in good faith, through mistake, inadvertence
or oversight, of an alcoholic beverage that was not
ordered by a retailer, mixed beverage licensee, on-
premises beer and wine licensee, caterer, public event
or special event licensee to such licensee,
b. replacement of product breakage that occurred while
the alcoholic beverages were in transit from the
wholesaler to the licensee, or
c. replacement of cork-tainted wine that makes the
product unsaleable as long as the licensee notifies
the wine and spirits wholesaler of the defect in
writing within ninety
(90)days after delivery of the
product; or
6. Extend credit to any retailer, other than holders of Federal Liquor Stamps on United States government reservations and installations, mixed beverage, public event or on-premises beer and wine licensee or caterer, other than a state lodge located in a county which has approved the retail sale of alcoholic beverages by the individual drink for on-premises consumption. The acceptance of a postdated check or draft or the failure to deposit for collection a current check or draft by the second banking day after receipt shall be deemed an extension of credit.
Violation of this section shall be grounds for suspension of the license. Added by Laws 2016, c. 366, § 89, eff. Oct. 1, 2018. Amended by Laws 2019, c. 322, § 22, emerg. eff. May 7, 2019; Laws 2019, c. 431, § 1, emerg. eff. May 23, 2019. NOTE: Laws 2016, c. 366, was conditionally effective upon passage of State Question No. 792, Legislative Referendum No. 370, which was adopted at election held on Nov. 8, 2016.