2009 Hawaii Code
Volume 05
§281-42 - Manufacturers and wholesale dealers, special restrictions.

     §281-42  Manufacturers and wholesale dealers, special restrictions.  (a)  It shall be unlawful for any person holding a manufacturer's license or a wholesale dealer's license to induce the purchases of a retail licensee by:

     (1)  Acquiring or holding any interest in any license of a retail licensee;

     (2)  Acquiring any interest in the real or personal property owned, occupied, or used by a retail licensee in the conduct of its business, unless the holding of such interest is permitted under the regulations of the liquor commission or statement thereof has been filed with the commission and has not been disapproved by it;

     (3)  Furnishing, giving, renting, lending, or selling to a retail licensee any equipment, fixtures, signs, supplies, money, services or other thing of value, subject to the exceptions contained in Subpart D of the "tied house" regulations of the Bureau of Alcohol, Tobacco and Firearms of the United States Treasury Department, 27 Code of Federal Regulations Part 6 (1988) as the same may change from time to time;

     (4)  Paying or crediting a retail licensee for any advertising, display or distribution service, whether or not the advertising, display or distribution service received is commensurate with the amount paid by the retail licensee; provided that this paragraph shall not prohibit representatives of manufacturers and wholesalers from creating and maintaining displays and point of purchase sales materials, or from stocking shelves and cold boxes;

     (5)  Guaranteeing any loan or the repayment of any financial obligation of a retail licensee;

     (6)  Extending credit to the retail licensee for a period of time in excess of thirty days from the date of invoice;

     (7)  Requiring a retail licensee to take and dispose of any quota of liquor; or

     (8)  Requiring a retail licensee to purchase one product in order to purchase another product.  This includes combination sales if one or more products may be purchased only in combination with other products and not individually, provided that a manufacturer or wholesale dealer is not prohibited from selling at a special combination price, two or more kinds or brands of products to a retail licensee, if (A) the retail licensee has an option of purchasing either product at the usual price, and (B) the retail licensee is not required to purchase any product it does not want.

     (b)  It shall be unlawful for any person holding a manufacturer's or wholesale dealer's license:

     (1)  To sell any liquor at wholesale prices without invoicing the vendee's license number, except where the vendee, although authorized to resell, is not required by law to hold a license, in which case the invoice shall fully indicate the vendee's identity; or

     (2)  To sell any liquor, except for cash or by receiving payment in advance of delivery, to any retail licensee who has not paid in full for all previous purchases of liquor from such manufacturer or wholesaler by the expiration of the thirtieth day from the date of the invoice for such liquor.

     (c)  In construing subsection (a), the courts and the liquor commission shall follow the rules, regulations, and decisions of the Bureau of Alcohol, Tobacco and Firearms of the United States Treasury Department and the federal courts in interpreting section 5(b) of the Federal Alcohol Administration Act, as the same may be changed from time to time. [L Sp 1933, c 40, §24; RL 1935, §2593; am L 1937, c 211, §12; am L 1939, c 205, pt of §1; RL 1945, §7245; am L 1949, c 301, §1(d); am L 1951, c 223, §1(5); RL 1955, §159-42; HRS §281-42; am L 1971, c 175, §1; gen ch 1985; am L 1990, c 171, §13]


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