Kansas Administrative Regulations › Agency 14 - KANSAS DEPARTMENT OF REVENUE-DIVISION OF ALCOHOLIC BEVERAGE CONTROL › Article 14 - MANUFACTURERS; DISTRIBUTORS; NONBEVERAGE USERS; FARM WINERIES; MICROBREWERIES › Section 14-14-11 - Prohibited conduct of licensees

Current through Register Vol. 43, No. 28, July 11, 2024
(a) No manufacturer
			 of alcoholic liquor or cereal malt beverage holding a manufacturer's license
			 issued by the director, manufacturer of alcoholic liquor or cereal malt
			 beverage outside of this state manufacturing alcoholic liquor or cereal malt
			 beverage for sale and distribution within the state, licensed distributor
			 within the state, or their agents, salesmen or representatives shall offer,
			 give or furnish, directly or indirectly, any gifts, prizes, coupons, premiums,
			 rebates, quantity discounts, entertainment, decorations, or the services of any
			 employee, including errands and administrative services, or any other
			 inducement or thing of value of any kind to a licensed retailer, club, drinking
			 establishment or caterer or to an applicant for a retailer, club, drinking
			 establishment or caterer license except as provided in Article 10;
(b) No manufacturer, including a manufacturer
			 outside of this state, that manufactures alcoholic liquor or cereal malt
			 beverage for sale and distribution within this state shall offer, furnish or
			 give, directly or indirectly, any rebates to any distributor, distributor's
			 spouse, agent, salesperson or representative.
(c) A licensee shall not, as a condition for
			 the sale or delivery of alcoholic liquor or cereal malt beverage to any other
			 licensee or to a customer, require that the other licensee or customer purchase
			 or contract to purchase alcoholic liquor or cereal malt beverage of another
			 form, quantity or brand in addition to, or partially in lieu of, that which was
			 specifically ordered or desired by the licensee or customer. Licensees of any
			 class shall not sell or deliver alcoholic liquor or cereal malt beverage in any
			 form or quantity or of any brand to another licensee or to a customer, under
			 any arrangement, agreement or understanding, direct or implied, that the sale
			 or delivery will be made only if the other licensee or customer also buys or
			 accepts delivery of a quantity of alcoholic liquor or cereal malt beverage of
			 another form or brand.
(d) If any
			 licensee refuses to permit the director or any agent or employee of the
			 director to inspect the licensed premises and any alcoholic liquor or cereal
			 malt beverage owned or controlled by the licensee upon the licensed premises or
			 upon any other premises where the licensee may have liquor stored, the refusal
			 shall be grounds for the revocation of the license.
(e) A manufacturer shall be deemed to have
			 discriminated against licensed distributors, including those possessing a
			 franchise to distribute alcoholic liquor or cereal malt beverage in a
			 geographical territory, if the manufacturer directly or indirectly, or through
			 any agent or employee:
(1) Offers to sell or
			 sells to a distributor alcoholic liquor in any manner that results in a price
			 different than the current price which the manufacturer has offered to all
			 distributors;
(2) requires a
			 licensed distributor to purchase in excess of one case lot of any brand, or
			 kind, or container size of that alcoholic liquor that is sold by the case;
(3) refuses to sell any brand or
			 kind of alcoholic liquor, except beer, to a licensed distributor in any
			 quantity ordered by a distributor in lots of one or more cases when alcoholic
			 liquor is sold to distributors by the case;
(4) refuses to sell for cash at the current
			 price any alcoholic liquor, to a licensed distributor, if such alcoholic liquor
			 is ordered in a lot of one case or more and the price offered to distributors
			 is by the case;
(5) refuses to
			 sell any brand or kind of alcoholic liquor to a licensed distributor unless the
			 licensed distributor purchases or agrees to purchase alcoholic liquor of
			 another kind, form, quantity or brand in addition to, or partially in lieu of,
			 the brand or kind of alcoholic liquor specifically ordered by the licensed
			 distributor; or
(6) fails to fill
			 orders of distributors for alcoholic liquor, other than beer, in the
			 chronological sequence in which orders from distributors are received. This
			 paragraph shall not apply when the manufacturer is operating under a rationing
			 plan approved by the director.