State Codes and Statutes

Statutes > Utah > Title-32a > Chapter-12 > 32a-12-602-repealed-07-01-11

32A-12-602 (Repealed 07/01/11). Exclusive outlets.
(1) It is unlawful for any industry member, directly or indirectly or through an affiliate, torequire, by agreement or otherwise, that the department or a retailer purchase any alcoholicbeverage products from the industry member or the department to the exclusion in whole or inpart of any of those products sold or offered for sale by other persons.
(2) (a) Subsection (1) applies only to a transaction between:
(i) one or more industry members; and
(ii) (A) the department; or
(B) one or more retailers.
(b) Subsection (1) does not apply to a transaction between two or more industry membersincluding between a manufacturer and a wholesaler.
(3) Subsection (1) includes purchases coerced by industry members through acts orthreats of physical or economic harm, as well as voluntary industry member-retailer purchaseagreements.
(4) (a) Subsection (1) includes any contract or agreement, written or unwritten, that hasthe effect of requiring the department or retailer to purchase alcoholic beverages from theindustry member beyond a single sales transaction.
(b) Examples of a contract described in Subsection (4)(a) include:
(i) an advertising contract between an industry member and a retailer with the express orimplied requirement of the purchase of the advertiser's products; or
(ii) a sales contract awarded on a competitive bid basis that has the effect of prohibitingthe department or retailer from purchasing from other industry members by:
(A) requiring that the retailer purchase a product or line of products exclusively from theindustry member for the period of the agreement; or
(B) requiring that the retailer purchase a specific or minimum quantity during the periodof the agreement.
(5) (a) Subsection (1) includes any contract, agreement, or other arrangement between anindustry member and a third party nonretailer that requires the department or a retailer topurchase the industry member's products to the exclusion in whole or in part of any alcoholicbeverage products sold or offered for sale by other persons.
(b) This Subsection (5) applies whether the contract, agreement, or other arrangementoriginates with the industry member or the third party.
(c) Examples of a contract, agreement, or other arrangement described in this Subsection(5) include:
(i) a contract, agreement, or arrangement:
(A) with a third party such as a ball club or municipal or private corporation that is not aretailer;
(B) under which the third party leases the concession rights and is able to control thepurchasing decisions of a retailer; and
(C) that requires the retailer to purchase the industry member's products to the exclusionin whole or in part of any alcoholic beverage products sold or offered for sale by other persons;or
(ii) a contract, agreement, or arrangement with a third party nonretailer that in returnrequires a retailer to purchase the industry member's products to the exclusion in whole or in partof any alcoholic beverage products sold or offered for sale by other persons in return for which

the third party provides a service or other thing of value such as:
(A) sponsoring radio or television broadcasting;
(B) paying for advertising; or
(C) providing other services or things of value.

Repealed by Chapter 276, 2010 General Session
Amended by Chapter 314, 2003 General Session