Opinions This is in response to your request concerning breakage that affects your members. You advise that you reviewed the Federal Alcohol Administration Act, particularly 27 CFR 11.31 through 11.48 and determined that the industry member can exchange defective products if they decide to do so. You provided copies of letters you received in 1989 and 1991 from the former Bureau of Alcohol, Tobacco and Firearms Area Supervisor of Compliance Operations (Roger Bowling) and a copy of your August 26, 2008 letter to the Director of the Miscellaneous Tax Division, Mississippi State Tax Commission (Charmin Tillman). These letters address the breakage issue. You specifically ask if TTB has issued an opinion that deals with a beer distributor. who picks up breakage after delivery to a retailer where the breakage occurs after the retailer takes possession. and the beer distributor is not at fault. TTB has had no changes to federal laws or regulations regarding breakage. The only returns/exchanges that are lawful under the Federal Alcohol Administration Act (FAA) are those described in 27 CFR 11.32- 11.39. 27 CFR Part 11 - Consignment Sales does not list product breakage as a reason for product return or exchange. Consequently, TTB does not consider product breakage as a defective product or eligible for credit/return. If a wholesaler gives credit/exchange for broken products to a retailer, TTB considers it a prohibited inducement under 27 CFR Part 6 - Tied House. We would also consider the wholesaler's labor cost for the breakage return an unlawful inducement under Tied House. Further, if a credit/exchange outside of 27 CFR Part 11 occurs, it makes no difference if the originator of the transaction is the wholesaler or the retailer for us to categorize the transaction as a wholesaler prohibited inducement under Tied House. I hope that this answers your question. If there is any way my office can be of further assistance to you and your membership, please contact Investigator Cathy Wycoff at 205-683-0840 or contact me at 813-348-1610. FROM: Trade Investigations Division Southeast District Field Office 4300 W. Cypress Street, Suite 340 Tampa, FL 33607 DATE: August 28,2008
Rules & Regulations Pursuant to authority contained within Arkansas ABC Regulation 2.19, the following Order is promulgated and adopted to set forth the sizes of containers, and combinations thereof, in which all sales of all beverages for consumption off premises shall be made: 1. Approved sizes and combinations for the sale of malt beverages and light wine for consumption off premises:d a. One 1/2 barrel container or a 13.2 gallon or 13.5 gallon container; b. One 1/4 barrel container or 7.9 gallon or 10.8 gallon container; c. One 1/6 barrci container or 20 liter or 25 liter or 6.0 gallon container; d. One 1/8 barrel container; e. One 5 liter container or 2 gallon container, or 3 liter container, or 1.26 gallon container: f. One 65 oz. or 2 liter container; g. One 40 or 45 oz, or 46.5 oz., 50.7 oz. Or 59.2 oz. container or 1.75 liter container; h. One 32 oz. or 1 liter container; i. One 16.9 oz., 18 oz., 18.5 oz., 18.6 oz., 18.7 oz., 19.25 oz., 20 oz., 21.4 oz., 21.6 oz., 22 0%., 22.302., 224. 07., 23.5 (2., 24 02., 24.30u., 25 OZ., or 25.4 oz. container; j. 18, 12, 9, 8, 6, 4, or 2 pack of any 16 oz. container:
Rules & Regulations View the 2018 report that shows the economic impact of the beer industry in Arkansas.
Rules & Regulations 1. All Suppliers shall offer any product sold to any Wholesaler in Arkansas to all Wholesalers in Arkansas on the same terms and conditions. 2. Prepaid shipment invoices shall include either: (1) the same FOB-source for each product regardless of the source, plus a freight charge calculated on the same proportionate basis for each Wholesaler regardless of the source; or (2) the same delivered price for all Wholesalers. A fuel surcharge is considered a part of the freight charge and shall be applied uniformly for all Wholesalers. The source for each Wholesaler shall be the Supplier's shipping location closest to the Wholesaler's physical warehouse location. A Supplier shall charge each Wholesaler for shipments from a shipping location other than the Wholesaler's source the same amount as if the shipment was from the Wholesaler's source, even if the amount paid by the Wholesaler for shipments from the Wholesaler's source is an amount contracted by the Wholesaler with a third-party carrier. A Supplier shall charge a pro-rata amount for LTL shipments based on the amount charged for a standard FTL from the Wholesaler's source. 3. Any other fees or charges related to product supply from a Supplier shall be the same for all Wholesalers. 4. Suppliers shall be allowed to offer unconditional rebates to all Wholesalers for sales of specific products from Wholesalers to licensed Retailers within a specified temporary period, which shall not be less than 14 consecutive days in duration. Temporary price reductions shall not be offered in any other form. 5. Quantity discounts from Suppliers to Wholesalers are not allowed. 6. Suppliers shall remit rebate amounts to Wholesalers before the tenth day of each month for all sales subject to rebates during the previous month. Rebates may be made more frequently at the discretion of the Supplier 7. Suppliers shall provide quantities of products to each Wholesaler on a timely basis sufficient to meet all orders or forecasted sales. Timely basis is defined as (1) a confirmed delivery date of a specific order, or (2) sufficient inventory on-hand at a Wholesaler's location to meet the forecasted sales prior to the beginning of the forecasted period. In the event a Supplier shall have inadequate quantities of a product to meet the cumulative statewide wholesale demand on a timely basis, the Supplier may apportion the available quantities according to a plan subject to the approval of the Director. Otherwise, a Supplier may not unilaterally increase or decrease any Wholesaler order or forecasted sales quantity. In the event a eus Supplier fails to provide product subject to a rebate to any Wholesaler on a timely basis as defined above regardless of the reason, the Supplier shall extend the rebate period for all Wholesalers until one week after the product is available for delivery to each Wholesaler. 8. Suppliers shall not offer any other discriminatory financial support to any Wholesaler in any form. A Supplier may be required to submit all financial transactions with all Wholesalers as requested by the Director and may be subject to an audit of such transaction as deemed necessary by the Director. 9. A Supplier shall post the following information with the Director and with each Wholesaler in Arkansas at the same time and in its most current form: FOB-Source for all products offered in Arkansas, freight charges and source location for each Wholesaler; other product supply fees, and temporary rebate periods, products subject to rebates during the rebate period, and the rebate amount for each product.
Rules & Regulations A supplier shall not do the following: (1) Fail to provide to each wholesaler of the supplier's brand or brands with a written agreement which contains, in total, the supplier's agreement with each wholesaler and designates a specific exclusive sales territory. Any agreement which is in existence on January 31, 1991, shall be renewed consistent with this subchapter, provided that this subchapter may be incorporated by reference in the agreement. Provided, however, nothing contained herein shall prevent a supplier from appointing, one (1) time for a period not to exceed ninety (90) days, a wholesaler to temporarily service a sales territory not designated to another wholesaler, until such time as a wholesaler is appointed by the supplier, and such wholesaler who is designated to service the sales territory during this period of temporary service shall not be in violation of this subchapter, and, with respect to the temporary service territory, shall not have any of the rights provided under $$ 3-5-1108 and 3-5-1111; (2) Fix, maintain, or establish the price at which a wholesaler shall sell any beer; (3) Enter into an additional agreement with any other wholesaler for, or to sell to any other wholesaler, the same brand or brands of beer in the same territory or any portion thereof, or to sell directly to any retailer in this state; (4) Require any wholesaler to accept delivery of any beer or other commodity which has not been ordered by the wholesaler. Provided, however, a supplier may impose reasonable inventory requirements upon a wholesaler if the requirements are made in good faith and are generally applied to other similarly situated wholesalers who have an agreement with the supplier; (5) Require any wholesaler to accept delivery of any beer or other commodity ordered by a wholesaler if the order was properly cancelled by the wholesaler in accordance with the supplier's procedures; (6) Require any wholesaler to do any illegal act or to violate any law or regulation by threatening to amend, modify, cancel, terminate, or refuse to renew any agreement existing between the supplier and wholesaler; (7) Require a wholesaler to assent to any condition, stipulation, or provision limiting the wholesaler's right to sell the brand or brands of beer of any other supplier unless the acquisition of the brand or brands of another supplier would materially impair or adversely affect the wholesaler's quality of service, sales, or ability to compete effectively in representing the brand or brands of the supplier presently being sold by the wholesaler; provided the supplier shall have the burden of proving that such acquisition of such other brand or brands would have such effect;