W. Va. Code R. § 175-4-13

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 175-4-13 - Trade Practices and Conduct of Business Generally

13.1. Improper Inducements. -- A manufacturer may not induce, directly or indirectly, any distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club to purchase any wines from the manufacturer to the exclusion, in whole or in part, of products sold or offered for sale by another manufacturer, by:

13.1.a. Acquiring or holding any interest in any license of a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa, private club or in any premises owned, occupied or used in any manner by the licensee or his or her immediate family;

13.1.b. Acquiring any interest in the real or personal property which is owned, occupied, or in any manner used by the distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family in the conduct of any business;

13.1.c. Furnishing, giving, renting, lending, or selling to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family any equipment, fixtures, exterior signs, supplies, money, services or other things of value: However, a manufacturer may furnish items of nominal value for in-store display or sales purposes and to be used only within the confines of the commercial establishment.

13.1.d. Paying or crediting a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family for any advertising, display, or distribution services;

13.1.e. Guaranteeing any loan for the repayment of any financial obligation of a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family; or

13.1.f. Requiring the distributor, licensed retailer or private wine restaurant to take and dispose of a certain quota of any wine.

13.2. Interest in the retail license. -- A manufacturer may not acquire or hold any interest in any license required to be obtained by a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family or in any other premises owned, occupied or in any manner used by the distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family.

13.2.a. This prohibition applies to the officers, partners, employees, other representatives of the manufacturer, and their immediate families.

13.2.b. This prohibition applies to any such interest acquired by a separate corporation in which the manufacturer or its officers, partners, employees or other representatives, or their immediate families, holding any ownership interests or are otherwise affiliated.

13.3. Interest in real or personal property of a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club.

13.3.a. A manufacturer may not acquire or hold any interest in real or personal property which is owned, occupied, or in any manner used by a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family.

13.3.b. This prohibition applies to any interest acquired by corporate officials, partners and employees or other representatives of the manufacturer, or their immediate families and to any interest which is acquired by a separate corporation in which the manufacturer or its officers, partners, employees or other representatives or their immediate families of any such individuals, hold any ownership interest or are otherwise affiliated.

13.3.c. A manufacturer may not acquire a mortgage or similar type of document on the real or personal property of a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or on the real or personal property of their immediate family members.

13.3.d. A manufacturer may not rent display space or shelf space at any commercial establishment operated by a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family.

13.4. Furnishing things of value.

13.4.a. A manufacturer may not furnish, give, rent, or lend to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family any equipment, fixtures, exterior signs, supplies, money, services or other things of value. A manufacturer may sell to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club goods other than wine which are to be resold to the general public, or to members of the private wine restaurant, so long as the distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club must pay the normal sale price for those goods.

13.4.b. This prohibition applies to any similar activity which occurs through a third party, such as a retailer association or display company, where the benefits resulting to the distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club may be considered as providing a thing of value without the payment of an appropriate purchase price.

13.4.c. The sale of any equipment, supplies or fixtures to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club by a manufacturer must take place at the then current market value. The manufacturer may not offer any special price advantage to purchasing from one manufacturer as opposed to another manufacturer.

13.4.d. A manufacturer may not provide any assistance (financial, legal, administrative or influential) to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club in acquiring any license required by the Commissioner.

13.4.e. A manufacturer may not furnish any exterior advertising signs to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club, but may provide interior signs. The manufacturer may advertise by billboards which display alcoholic liquors, wine or nonintoxicating beer, but the manufacturer may not identify any distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club within such advertisement.

13.4.f. A manufacturer may not furnish to a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club at less than the normal sale price anything of value which the licensee may merchandise in his or her business. These things of value including nonalcoholic mixers, pouring racks, and similar items.

13.5. Paying for advertising, display or distribution service. A manufacturer may not provide a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club or his or her immediate family of either, with free advertisement, exterior display or distribution services, or any similar types of services in any business activities.

13.6. Quota sales. A manufacturer may not require a distributor, direct shipper, licensed retailer, private wine bed and breakfast, private wine restaurant, private wine spa or private club may not be required to purchase any alcoholic liquors in order to purchase nonalcoholic liquors or other products from that manufacturer.

13.7. Other. A manufacturer may not touch the product or displays of another manufacturer.

W. Va. Code R. § 175-4-13