§ 4.1-216. Further limitations on manufacturers, bottlers, importers, brokersor wholesalers; ownership interests prohibited; exceptions; prohibited tradepractices.
A. As used in this section:
"Broker" means any person, other than a manufacturer or a licensed beer orwine importer, who regularly engages in the business of bringing togethersellers and purchasers of alcoholic beverages for resale and arranges for orconsummates such transactions with persons in the Commonwealth to whom suchalcoholic beverages may lawfully be sold and shipped into the Commonwealthpursuant to the provisions of this title.
"Manufacturer, bottler, importer, broker or wholesaler of alcoholicbeverages" includes any officers or directors of any such manufacturer,bottler, importer, broker or wholesaler.
B. Except as provided in this title, no manufacturer, importer, bottler,broker or wholesaler of alcoholic beverages, whether licensed in theCommonwealth or not, shall acquire or hold any financial interest, direct orindirect, (i) in the business for which any retail license is issued or (ii)in the premises where the business of a retail licensee is conducted.
1. Subdivision B (ii) shall not apply so long as such manufacturer, bottler,importer, broker or wholesaler does not sell or otherwise furnish, directlyor indirectly, alcoholic beverages or other merchandise to such retaillicensee and such retailer is not required by agreement or otherwise toexclude from sale at his establishment alcoholic beverages of othermanufacturers, bottlers, importers, brokers or wholesalers.
2. Service as a member of the board of directors of a corporation licensed asa retailer, the shares of stock of which are sold to the general public onany national or local stock exchange, shall not be deemed to be a financialinterest, direct or indirect, in the business or the premises of the retaillicensee.
3. A brewery, winery or subsidiary or affiliate thereof, hereinaftercollectively referred to as a financing corporation, may participate infinancing the business of a wholesale licensee in the Commonwealth byproviding debt or equity capital or both but only if done in accordance withthe provisions of this subsection.
a. In order to assist a proposed new owner of an existing wholesale licensee,a financing corporation may provide debt or equity capital, or both, if priorapproval of the Board has been obtained pursuant to subdivision 3 b ofsubsection B. A financing corporation which proposes to provide equitycapital shall cause the proposed new owner to form a Virginia limitedpartnership in which the new owner is the general partner and the financingcorporation is a limited partner. If the general partner defaults on anyfinancial obligation to the limited partner, which default has beenspecifically defined in the partnership agreement, or, if the new ownerdefaults on its obligation to pay principal and interest when due to thefinancing corporation as specifically defined in the loan documents, then,and only then, shall such financing corporation be allowed to take title tothe business of the wholesale licensee. Notwithstanding any other law to thecontrary and provided written notice has been given to the Board within twobusiness days after taking title, the wholesale licensee may be managed andoperated by such financing corporation pursuant to the existing wholesalelicense for a period of time not to exceed 180 days as if the license hadbeen issued in the name of the financing corporation. On or before theexpiration of such 180-day period, the financing corporation shall causeownership of the wholesale licensee's business to be transferred to a newowner. Otherwise, on the 181st day, the license shall be deemed terminated.The financing corporation may not participate in financing the transfer ofownership to the new owner or to any other subsequent owner for a period oftwenty years following the effective date of the original financingtransaction; except where a transfer takes place before the expiration of theeighth full year following the effective date of the original financingtransaction in which case the financing corporation may finance such transferas long as the new owner is required to return such debt or equity capitalwithin the originally prescribed eight-year period. The financingcorporation may exercise its right to take title to, manage and operate thebusiness of, the wholesale licensee only once during such eight-year period.
b. In any case in which a financing corporation proposes to provide debt orequity capital in order to assist in a change of ownership of an existingwholesale licensee, the parties to the transaction shall first submit anapplication for a wholesale license in the name of the proposed new owner tothe Board.
The Board shall be provided with all documents that pertain to thetransaction at the time of the license application and shall ensure that theapplication complies with all requirements of law pertaining to the issuanceof wholesale licenses except that if the financing corporation proposes toprovide equity capital and thereby take a limited partnership interest in theapplicant entity, the financing corporation shall not be required to complywith any Virginia residency requirement applicable to the issuance ofwholesale licenses. In addition to the foregoing, the applicant entity shallcertify to the Board and provide supporting documentation that the followingrequirements are met prior to issuance of the wholesale license: (i) theterms and conditions of any debt financing which the financing corporationproposes to provide are substantially the same as those available in thefinancial markets to other wholesale licensees who will be in competitionwith the applicant, (ii) the terms of any proposed equity financingtransaction are such that future profits of the applicant's business shall bedistributed annually to the financing corporation in direct proportion to itspercentage of ownership interest received in return for its investment ofequity capital, (iii) if the financing corporation proposes to provide equitycapital, it shall hold an ownership interest in the applicant entity througha limited partnership interest and no other arrangement and (iv) theapplicant entity shall be contractually obligated to return such debt orequity capital to the financing corporation not later than the end of theeighth full year following the effective date of the transaction therebyterminating any ownership interest or right thereto of the financingcorporation.
Once the Board has issued a wholesale license pursuant to an applicationfiled in accordance with this subdivision 3 b, any subsequent change in thepartnership agreement or the financing documents shall be subject to theprior approval of the Board. In accordance with the previous paragraph, theBoard may require the licensee to resubmit certifications and documentation.
c. If a financing corporation wishes to provide debt financing, includinginventory financing, but not equity financing, to an existing wholesalelicensee or a proposed new owner of an existing wholesale licensee, it may doso without regard to the provisions of subdivisions 3 a and 3 b of subsectionB under the following circumstances and subject to the following conditions:(i) in order to secure such debt financing, a wholesale licensee or aproposed new owner thereof may grant a security interest in any of itsassets, including inventory, other than the wholesale license itself orcorporate stock of the wholesale licensee; in the event of default, thefinancing corporation may take title to any assets pledged to secure suchdebt but may not take title to the business of the wholesale licensee and maynot manage or operate such business; (ii) debt capital may be supplied bysuch financing corporation to an existing wholesale licensee or a proposednew owner of an existing wholesale licensee so long as debt capital isprovided on terms and conditions which are substantially the same as thoseavailable in the financial markets to other wholesale licensees incompetition with the wholesale licensee which is being so financed; and (iii)the licensee or proposed new owner shall certify to the Board and providesupporting documentation that the requirements of (i) and (ii) of thissubdivision 3 c have been met.
Nothing in this section shall eliminate, affect or in any way modify therequirements of law pertaining to issuance and retention of a wholesalelicense as they may apply to existing wholesale licensees or new ownersthereof which have received debt financing prior to the enactment of thissubdivision 3 c.
4. Except for holders of retail licenses issued pursuant to subdivision A 5of § 4.1-201, brewery licensees may sell beer to retail licensees for resaleonly under the following conditions: If such brewery or an affiliate orsubsidiary thereof has taken title to the business of a wholesale licenseepursuant to the provisions of subdivision 3 a of subsection B, direct sale toretail licensees may be made during the 180-day period of operation allowedunder that subdivision. Moreover, the holder of a brewery license may makesales of alcoholic beverages directly to retail licensees for a period not toexceed thirty days in the event that such retail licensees are normallyserviced by a wholesale licensee representing that brewery which has beenforced to suspend wholesale operations as a result of a natural disaster orother act of God or which has been terminated by the brewery for fraud, lossof license or assignment of assets for the benefit of creditors not in theordinary course of business.
5. Notwithstanding any provision of this section, including but not limitedto those provisions whereby certain ownership or lease arrangements may bepermissible, no manufacturer, bottler, importer, broker or wholesaler ofalcoholic beverages shall make an agreement, or attempt to make an agreement,with a retail licensee pursuant to which any products sold by a competitorare excluded in whole or in part from the premises on which the retaillicensee's business is conducted.
C. Subject to such exceptions as may be provided by statute or Boardregulations, no manufacturer, bottler, importer, broker or wholesaler ofalcoholic beverages, whether licensed in the Commonwealth or not, shall sell,rent, lend, buy for or give to any retail licensee, or to the owner of thepremises in which the business of any retail licensee is conducted, any (i)money, equipment, furniture, fixtures, property, services or anything ofvalue with which the business of such retail licensee is or may be conducted,or for any other purpose; (ii) advertising materials; and (iii) businessentertainment, provided that no transaction permitted under this section orby Board regulation shall be used to require the retail licensee to partiallyor totally exclude from sale at its establishment alcoholic beverages ofother manufacturers or wholesalers.
The provisions of this subsection shall apply to manufacturers, bottlers,importers, brokers and wholesalers selling alcoholic beverages to anygovernmental instrumentality or employee thereof selling alcoholic beveragesat retail within the exterior limits of the Commonwealth, including allterritory within these limits owned by or ceded to the United States ofAmerica.
(1989, c. 528, § 4-79.1; 1992, c. 349; 1993, c. 866.)
§ 4.1-216. Further limitations on manufacturers, bottlers, importers, brokersor wholesalers; ownership interests prohibited; exceptions; prohibited tradepractices.
A. As used in this section:
"Broker" means any person, other than a manufacturer or a licensed beer orwine importer, who regularly engages in the business of bringing togethersellers and purchasers of alcoholic beverages for resale and arranges for orconsummates such transactions with persons in the Commonwealth to whom suchalcoholic beverages may lawfully be sold and shipped into the Commonwealthpursuant to the provisions of this title.
"Manufacturer, bottler, importer, broker or wholesaler of alcoholicbeverages" includes any officers or directors of any such manufacturer,bottler, importer, broker or wholesaler.
B. Except as provided in this title, no manufacturer, importer, bottler,broker or wholesaler of alcoholic beverages, whether licensed in theCommonwealth or not, shall acquire or hold any financial interest, direct orindirect, (i) in the business for which any retail license is issued or (ii)in the premises where the business of a retail licensee is conducted.
1. Subdivision B (ii) shall not apply so long as such manufacturer, bottler,importer, broker or wholesaler does not sell or otherwise furnish, directlyor indirectly, alcoholic beverages or other merchandise to such retaillicensee and such retailer is not required by agreement or otherwise toexclude from sale at his establishment alcoholic beverages of othermanufacturers, bottlers, importers, brokers or wholesalers.
2. Service as a member of the board of directors of a corporation licensed asa retailer, the shares of stock of which are sold to the general public onany national or local stock exchange, shall not be deemed to be a financialinterest, direct or indirect, in the business or the premises of the retaillicensee.
3. A brewery, winery or subsidiary or affiliate thereof, hereinaftercollectively referred to as a financing corporation, may participate infinancing the business of a wholesale licensee in the Commonwealth byproviding debt or equity capital or both but only if done in accordance withthe provisions of this subsection.
a. In order to assist a proposed new owner of an existing wholesale licensee,a financing corporation may provide debt or equity capital, or both, if priorapproval of the Board has been obtained pursuant to subdivision 3 b ofsubsection B. A financing corporation which proposes to provide equitycapital shall cause the proposed new owner to form a Virginia limitedpartnership in which the new owner is the general partner and the financingcorporation is a limited partner. If the general partner defaults on anyfinancial obligation to the limited partner, which default has beenspecifically defined in the partnership agreement, or, if the new ownerdefaults on its obligation to pay principal and interest when due to thefinancing corporation as specifically defined in the loan documents, then,and only then, shall such financing corporation be allowed to take title tothe business of the wholesale licensee. Notwithstanding any other law to thecontrary and provided written notice has been given to the Board within twobusiness days after taking title, the wholesale licensee may be managed andoperated by such financing corporation pursuant to the existing wholesalelicense for a period of time not to exceed 180 days as if the license hadbeen issued in the name of the financing corporation. On or before theexpiration of such 180-day period, the financing corporation shall causeownership of the wholesale licensee's business to be transferred to a newowner. Otherwise, on the 181st day, the license shall be deemed terminated.The financing corporation may not participate in financing the transfer ofownership to the new owner or to any other subsequent owner for a period oftwenty years following the effective date of the original financingtransaction; except where a transfer takes place before the expiration of theeighth full year following the effective date of the original financingtransaction in which case the financing corporation may finance such transferas long as the new owner is required to return such debt or equity capitalwithin the originally prescribed eight-year period. The financingcorporation may exercise its right to take title to, manage and operate thebusiness of, the wholesale licensee only once during such eight-year period.
b. In any case in which a financing corporation proposes to provide debt orequity capital in order to assist in a change of ownership of an existingwholesale licensee, the parties to the transaction shall first submit anapplication for a wholesale license in the name of the proposed new owner tothe Board.
The Board shall be provided with all documents that pertain to thetransaction at the time of the license application and shall ensure that theapplication complies with all requirements of law pertaining to the issuanceof wholesale licenses except that if the financing corporation proposes toprovide equity capital and thereby take a limited partnership interest in theapplicant entity, the financing corporation shall not be required to complywith any Virginia residency requirement applicable to the issuance ofwholesale licenses. In addition to the foregoing, the applicant entity shallcertify to the Board and provide supporting documentation that the followingrequirements are met prior to issuance of the wholesale license: (i) theterms and conditions of any debt financing which the financing corporationproposes to provide are substantially the same as those available in thefinancial markets to other wholesale licensees who will be in competitionwith the applicant, (ii) the terms of any proposed equity financingtransaction are such that future profits of the applicant's business shall bedistributed annually to the financing corporation in direct proportion to itspercentage of ownership interest received in return for its investment ofequity capital, (iii) if the financing corporation proposes to provide equitycapital, it shall hold an ownership interest in the applicant entity througha limited partnership interest and no other arrangement and (iv) theapplicant entity shall be contractually obligated to return such debt orequity capital to the financing corporation not later than the end of theeighth full year following the effective date of the transaction therebyterminating any ownership interest or right thereto of the financingcorporation.
Once the Board has issued a wholesale license pursuant to an applicationfiled in accordance with this subdivision 3 b, any subsequent change in thepartnership agreement or the financing documents shall be subject to theprior approval of the Board. In accordance with the previous paragraph, theBoard may require the licensee to resubmit certifications and documentation.
c. If a financing corporation wishes to provide debt financing, includinginventory financing, but not equity financing, to an existing wholesalelicensee or a proposed new owner of an existing wholesale licensee, it may doso without regard to the provisions of subdivisions 3 a and 3 b of subsectionB under the following circumstances and subject to the following conditions:(i) in order to secure such debt financing, a wholesale licensee or aproposed new owner thereof may grant a security interest in any of itsassets, including inventory, other than the wholesale license itself orcorporate stock of the wholesale licensee; in the event of default, thefinancing corporation may take title to any assets pledged to secure suchdebt but may not take title to the business of the wholesale licensee and maynot manage or operate such business; (ii) debt capital may be supplied bysuch financing corporation to an existing wholesale licensee or a proposednew owner of an existing wholesale licensee so long as debt capital isprovided on terms and conditions which are substantially the same as thoseavailable in the financial markets to other wholesale licensees incompetition with the wholesale licensee which is being so financed; and (iii)the licensee or proposed new owner shall certify to the Board and providesupporting documentation that the requirements of (i) and (ii) of thissubdivision 3 c have been met.
Nothing in this section shall eliminate, affect or in any way modify therequirements of law pertaining to issuance and retention of a wholesalelicense as they may apply to existing wholesale licensees or new ownersthereof which have received debt financing prior to the enactment of thissubdivision 3 c.
4. Except for holders of retail licenses issued pursuant to subdivision A 5of § 4.1-201, brewery licensees may sell beer to retail licensees for resaleonly under the following conditions: If such brewery or an affiliate orsubsidiary thereof has taken title to the business of a wholesale licenseepursuant to the provisions of subdivision 3 a of subsection B, direct sale toretail licensees may be made during the 180-day period of operation allowedunder that subdivision. Moreover, the holder of a brewery license may makesales of alcoholic beverages directly to retail licensees for a period not toexceed thirty days in the event that such retail licensees are normallyserviced by a wholesale licensee representing that brewery which has beenforced to suspend wholesale operations as a result of a natural disaster orother act of God or which has been terminated by the brewery for fraud, lossof license or assignment of assets for the benefit of creditors not in theordinary course of business.
5. Notwithstanding any provision of this section, including but not limitedto those provisions whereby certain ownership or lease arrangements may bepermissible, no manufacturer, bottler, importer, broker or wholesaler ofalcoholic beverages shall make an agreement, or attempt to make an agreement,with a retail licensee pursuant to which any products sold by a competitorare excluded in whole or in part from the premises on which the retaillicensee's business is conducted.
C. Subject to such exceptions as may be provided by statute or Boardregulations, no manufacturer, bottler, importer, broker or wholesaler ofalcoholic beverages, whether licensed in the Commonwealth or not, shall sell,rent, lend, buy for or give to any retail licensee, or to the owner of thepremises in which the business of any retail licensee is conducted, any (i)money, equipment, furniture, fixtures, property, services or anything ofvalue with which the business of such retail licensee is or may be conducted,or for any other purpose; (ii) advertising materials; and (iii) businessentertainment, provided that no transaction permitted under this section orby Board regulation shall be used to require the retail licensee to partiallyor totally exclude from sale at its establishment alcoholic beverages ofother manufacturers or wholesalers.
The provisions of this subsection shall apply to manufacturers, bottlers,importers, brokers and wholesalers selling alcoholic beverages to anygovernmental instrumentality or employee thereof selling alcoholic beveragesat retail within the exterior limits of the Commonwealth, including allterritory within these limits owned by or ceded to the United States ofAmerica.
(1989, c. 528, § 4-79.1; 1992, c. 349; 1993, c. 866.)
§ 4.1-216. Further limitations on manufacturers, bottlers, importers, brokersor wholesalers; ownership interests prohibited; exceptions; prohibited tradepractices.
A. As used in this section:
"Broker" means any person, other than a manufacturer or a licensed beer orwine importer, who regularly engages in the business of bringing togethersellers and purchasers of alcoholic beverages for resale and arranges for orconsummates such transactions with persons in the Commonwealth to whom suchalcoholic beverages may lawfully be sold and shipped into the Commonwealthpursuant to the provisions of this title.
"Manufacturer, bottler, importer, broker or wholesaler of alcoholicbeverages" includes any officers or directors of any such manufacturer,bottler, importer, broker or wholesaler.
B. Except as provided in this title, no manufacturer, importer, bottler,broker or wholesaler of alcoholic beverages, whether licensed in theCommonwealth or not, shall acquire or hold any financial interest, direct orindirect, (i) in the business for which any retail license is issued or (ii)in the premises where the business of a retail licensee is conducted.
1. Subdivision B (ii) shall not apply so long as such manufacturer, bottler,importer, broker or wholesaler does not sell or otherwise furnish, directlyor indirectly, alcoholic beverages or other merchandise to such retaillicensee and such retailer is not required by agreement or otherwise toexclude from sale at his establishment alcoholic beverages of othermanufacturers, bottlers, importers, brokers or wholesalers.
2. Service as a member of the board of directors of a corporation licensed asa retailer, the shares of stock of which are sold to the general public onany national or local stock exchange, shall not be deemed to be a financialinterest, direct or indirect, in the business or the premises of the retaillicensee.
3. A brewery, winery or subsidiary or affiliate thereof, hereinaftercollectively referred to as a financing corporation, may participate infinancing the business of a wholesale licensee in the Commonwealth byproviding debt or equity capital or both but only if done in accordance withthe provisions of this subsection.
a. In order to assist a proposed new owner of an existing wholesale licensee,a financing corporation may provide debt or equity capital, or both, if priorapproval of the Board has been obtained pursuant to subdivision 3 b ofsubsection B. A financing corporation which proposes to provide equitycapital shall cause the proposed new owner to form a Virginia limitedpartnership in which the new owner is the general partner and the financingcorporation is a limited partner. If the general partner defaults on anyfinancial obligation to the limited partner, which default has beenspecifically defined in the partnership agreement, or, if the new ownerdefaults on its obligation to pay principal and interest when due to thefinancing corporation as specifically defined in the loan documents, then,and only then, shall such financing corporation be allowed to take title tothe business of the wholesale licensee. Notwithstanding any other law to thecontrary and provided written notice has been given to the Board within twobusiness days after taking title, the wholesale licensee may be managed andoperated by such financing corporation pursuant to the existing wholesalelicense for a period of time not to exceed 180 days as if the license hadbeen issued in the name of the financing corporation. On or before theexpiration of such 180-day period, the financing corporation shall causeownership of the wholesale licensee's business to be transferred to a newowner. Otherwise, on the 181st day, the license shall be deemed terminated.The financing corporation may not participate in financing the transfer ofownership to the new owner or to any other subsequent owner for a period oftwenty years following the effective date of the original financingtransaction; except where a transfer takes place before the expiration of theeighth full year following the effective date of the original financingtransaction in which case the financing corporation may finance such transferas long as the new owner is required to return such debt or equity capitalwithin the originally prescribed eight-year period. The financingcorporation may exercise its right to take title to, manage and operate thebusiness of, the wholesale licensee only once during such eight-year period.
b. In any case in which a financing corporation proposes to provide debt orequity capital in order to assist in a change of ownership of an existingwholesale licensee, the parties to the transaction shall first submit anapplication for a wholesale license in the name of the proposed new owner tothe Board.
The Board shall be provided with all documents that pertain to thetransaction at the time of the license application and shall ensure that theapplication complies with all requirements of law pertaining to the issuanceof wholesale licenses except that if the financing corporation proposes toprovide equity capital and thereby take a limited partnership interest in theapplicant entity, the financing corporation shall not be required to complywith any Virginia residency requirement applicable to the issuance ofwholesale licenses. In addition to the foregoing, the applicant entity shallcertify to the Board and provide supporting documentation that the followingrequirements are met prior to issuance of the wholesale license: (i) theterms and conditions of any debt financing which the financing corporationproposes to provide are substantially the same as those available in thefinancial markets to other wholesale licensees who will be in competitionwith the applicant, (ii) the terms of any proposed equity financingtransaction are such that future profits of the applicant's business shall bedistributed annually to the financing corporation in direct proportion to itspercentage of ownership interest received in return for its investment ofequity capital, (iii) if the financing corporation proposes to provide equitycapital, it shall hold an ownership interest in the applicant entity througha limited partnership interest and no other arrangement and (iv) theapplicant entity shall be contractually obligated to return such debt orequity capital to the financing corporation not later than the end of theeighth full year following the effective date of the transaction therebyterminating any ownership interest or right thereto of the financingcorporation.
Once the Board has issued a wholesale license pursuant to an applicationfiled in accordance with this subdivision 3 b, any subsequent change in thepartnership agreement or the financing documents shall be subject to theprior approval of the Board. In accordance with the previous paragraph, theBoard may require the licensee to resubmit certifications and documentation.
c. If a financing corporation wishes to provide debt financing, includinginventory financing, but not equity financing, to an existing wholesalelicensee or a proposed new owner of an existing wholesale licensee, it may doso without regard to the provisions of subdivisions 3 a and 3 b of subsectionB under the following circumstances and subject to the following conditions:(i) in order to secure such debt financing, a wholesale licensee or aproposed new owner thereof may grant a security interest in any of itsassets, including inventory, other than the wholesale license itself orcorporate stock of the wholesale licensee; in the event of default, thefinancing corporation may take title to any assets pledged to secure suchdebt but may not take title to the business of the wholesale licensee and maynot manage or operate such business; (ii) debt capital may be supplied bysuch financing corporation to an existing wholesale licensee or a proposednew owner of an existing wholesale licensee so long as debt capital isprovided on terms and conditions which are substantially the same as thoseavailable in the financial markets to other wholesale licensees incompetition with the wholesale licensee which is being so financed; and (iii)the licensee or proposed new owner shall certify to the Board and providesupporting documentation that the requirements of (i) and (ii) of thissubdivision 3 c have been met.
Nothing in this section shall eliminate, affect or in any way modify therequirements of law pertaining to issuance and retention of a wholesalelicense as they may apply to existing wholesale licensees or new ownersthereof which have received debt financing prior to the enactment of thissubdivision 3 c.
4. Except for holders of retail licenses issued pursuant to subdivision A 5of § 4.1-201, brewery licensees may sell beer to retail licensees for resaleonly under the following conditions: If such brewery or an affiliate orsubsidiary thereof has taken title to the business of a wholesale licenseepursuant to the provisions of subdivision 3 a of subsection B, direct sale toretail licensees may be made during the 180-day period of operation allowedunder that subdivision. Moreover, the holder of a brewery license may makesales of alcoholic beverages directly to retail licensees for a period not toexceed thirty days in the event that such retail licensees are normallyserviced by a wholesale licensee representing that brewery which has beenforced to suspend wholesale operations as a result of a natural disaster orother act of God or which has been terminated by the brewery for fraud, lossof license or assignment of assets for the benefit of creditors not in theordinary course of business.
5. Notwithstanding any provision of this section, including but not limitedto those provisions whereby certain ownership or lease arrangements may bepermissible, no manufacturer, bottler, importer, broker or wholesaler ofalcoholic beverages shall make an agreement, or attempt to make an agreement,with a retail licensee pursuant to which any products sold by a competitorare excluded in whole or in part from the premises on which the retaillicensee's business is conducted.
C. Subject to such exceptions as may be provided by statute or Boardregulations, no manufacturer, bottler, importer, broker or wholesaler ofalcoholic beverages, whether licensed in the Commonwealth or not, shall sell,rent, lend, buy for or give to any retail licensee, or to the owner of thepremises in which the business of any retail licensee is conducted, any (i)money, equipment, furniture, fixtures, property, services or anything ofvalue with which the business of such retail licensee is or may be conducted,or for any other purpose; (ii) advertising materials; and (iii) businessentertainment, provided that no transaction permitted under this section orby Board regulation shall be used to require the retail licensee to partiallyor totally exclude from sale at its establishment alcoholic beverages ofother manufacturers or wholesalers.
The provisions of this subsection shall apply to manufacturers, bottlers,importers, brokers and wholesalers selling alcoholic beverages to anygovernmental instrumentality or employee thereof selling alcoholic beveragesat retail within the exterior limits of the Commonwealth, including allterritory within these limits owned by or ceded to the United States ofAmerica.
(1989, c. 528, § 4-79.1; 1992, c. 349; 1993, c. 866.)
