Iowa Administrative Code › Agency 185 - Alcoholic Beverages Division › Chapter 16 - Trade Practices › Rule 185-16.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
"Alcoholic liquor"
means "alcoholic liquor" as
				defined in Iowa Code section
				123.3(5). For
				the purposes of this chapter, "alcoholic liquor" includes "native distilled
				spirits" as defined in Iowa Code section
				123.3(34).
"Beer"
means "beer" as defined in Iowa Code
				section 123.3(7). For
				the purposes of this chapter, "beer" includes "canned cocktail" as defined in
				Iowa Code section 123.3(11)  and
				"high alcoholic content beer" as defined in Iowa Code section
				123.3(22).
"Brand"
means each alcoholic liquor, wine, or
				beer packaged and sold under a separate name, class, type, or kind designation
				(wine appellation of origin, wine vintage date, alcoholic liquor age,
				percentage of alcohol, etc.).
"Department"
means the department of
				revenue.
"Equipment"
includes, but is not limited to,
				mechanized and nonmechanized refrigeration units and devices used in the
				storage, dispensing, and cooling of alcoholic liquor, wine and beer, tap boxes,
				"party wagons," dispensing systems, and shelving. Equipment does not include
				tapping accessories (including faucets, rods, vents, taps, hoses, washers,
				couplings, gas gauges, vent tongues, shanks, check valves and "picnic" pumps)
				which are used in dispensing wine or beer from kegs or bulk packaging.
"Exclusion,"
in whole or in part, means a
				practice by an industry member, whether direct, indirect, or through an
				affiliate, that places (or has the potential to place) retailer independence at
				risk by means of a tie or link between the industry member and retailer or by
				any other means of industry member control over the retailer, and such practice
				results in the retailer's purchasing less than it would have of a competing
				industry member's product. The following criteria are indications that a
				particular practice places retailer independence at risk. A practice need not
				meet all of the criteria specified below in order to place retailer
				independence at risk.
1. The practice
			 restricts or hampers the free economic choice of a retailer to decide which
			 products to purchase or the quantity in which to purchase them for sale to
			 consumers.
2. The industry member
			 obligates the retailer to participate in a promotion to obtain the industry
			 member's product.
3. The retailer
			 has a continuing obligation to purchase or otherwise promote the industry
			 member's product.
4. The retailer
			 has a commitment not to terminate its relationship with the industry member
			 with respect to purchase of the industry member's products.
5. The practice involves the industry member
			 in the day-to-day operations of the retailer. For example, the industry member
			 controls the retailer's decisions on which brand of products to purchase, the
			 pricing of products, or the manner in which the products will be displayed on
			 the retailer's premises.
6. The
			 practice is discriminatory in that it is not offered to all retailers in the
			 local market on the same terms without business reasons present to justify the
			 difference in treatment.
"Fixtures"
includes, but is not limited to,
				bar sinks, bars, light fixtures, and indoor or outdoor signs used to identify
				the retail establishment.
"Furnishings"
includes, but is not limited to,
				money, services, chairs, tables, lamps, pictures, remodeling costs, bar sinks,
				carpeting, bar stools, display cabinets and curios, linens, linen services,
				china and silver or stainless steel eating and other utensils, decorations, and
				sound systems used by a retailer. (Durable and disposable glassware is
				addressed in rule 185-16.5 (123).)
"Furnishings, fixtures and equipment"
does not
				include the items identified in rule
				185-16.2 (123), subrules 16.3(1)
				and 16.3(2), rule 185-16.5 (123), rule
				185-16.6 (123), rule
				185-16.7 (123), or paragraph
				16.13(2)
"a."
"Industry member"
means an alcoholic beverages
				manufacturer, including a distiller, vintner or brewer, bottler, importer,
				wholesaler, representative, broker, agent, officer, director, shareholder not
				considered an institutional investor as defined in Iowa Code section 123.3(27),
				partner or employee of each of the above.
"Product"
means alcoholic liquor, wine, or
				beer as defined in Iowa Code chapter 123.
"Retailer"
means the holder of an alcoholic
				beverages license or permit, agents, officers, directors, shareholders not
				considered institutional investors as defined in Iowa Code section
				123.3(27),
				partners, and employees who sell alcoholic liquor, wine or beer to consumers
				for consumption on or off the premises of the licensee or permittee.
"Sampling"
means the practice of industry
				members giving product to a retailer for the purpose of market research,
				education, promotion of the product, or determination of the flavor of the
				product.
"Tasting"
means the presentation and serving
				of a product by industry members or retailers to consumers for the purpose of
				market research, education, promotion of the product, or determination of the
				flavor of the product.
"Trade buyer"
means a person who is a
				wholesaler or retailer of alcoholic liquor, wine, or beer.
"Trade spending"
means the practice of
				industry members promoting their brand by purchasing alcoholic beverages for
				consumers where alcoholic beverages are sold and served for on-premises
				consumption.
"Wine"
means "wine" as defined in Iowa Code
				section 123.3(53). For the purposes of this chapter, "wine" includes "native
				wine" as defined in Iowa Code section 123.3(36).
This rule is intended to implement Iowa Code sections
				123.45 and
				123.186.