2013 New York Consolidated Laws
ABC - Alcoholic Beverage Control
Article 8 - (100 - 131) GENERAL PROVISIONS
101-AAA - Terms of sale; beer or wine products.

 
    §  101-aaa.  Terms  of sale; beer or wine products. 1. As used in this
  section:
    a. "Credit period" means the following:
    (1) A period beginning on Thursday, January first, two  thousand  four
  and ending on Sunday, January eighteenth, two thousand four; and
    (2)  A  period beginning on the first Monday succeeding the concluding
  day of each prior period and ending  on  the  second  succeeding  Sunday
  thereafter.
    b.  "Payment  period"  means  the  period  ending  on  the twelfth day
  immediately following the last day of any credit period.
    c. "Final payment date" means the last day of a payment period.
    d. "Delinquent notice date" means the third business  day  immediately
  following a final payment date.
    e.   "Notification   date"  means  the  day  immediately  following  a
  delinquent notice date.
    f. "Retail licensee" means a person licensed pursuant to this  chapter
  who  purchases  beer  and/or  wine  products  for  resale  for on or off
  premises consumption, except a person licensed  to  sell  liquor  and/or
  wine for off premises consumption.
    g. "Cash" means and includes currency and coin of the United States of
  America,  certified  check, money order, electronic funds transfer, bank
  officer's check or draft, or a check drawn on the account of the  retail
  licensee  payable  to  the manufacturer or wholesaler and dated no later
  than the date of delivery  of  the  alcoholic  beverages  and  which  is
  honored  upon  presentment  for  payment; provided, however, that if any
  check or other instrument described in  this  paragraph  tendered  by  a
  retail  licensee  on the delinquent list is not honored upon presentment
  for payment, the license of such retail licensee may  be  suspended  for
  not  more  than  fifteen  days  for the first offense, and not more than
  sixty days for a subsequent offense, which penalty shall be in  addition
  to the penalty provided for by the provisions of subdivision six of this
  section,  and  provided  further,  that  nothing  in  this section shall
  require a manufacturer or wholesaler to accept a check  tendered  by  or
  drawn  on the account of a retail licensee on the delinquent list unless
  the same has been certified.
    2. No manufacturer or wholesaler licensed  under  this  chapter  shall
  sell  or deliver any beer, cider or wine products to any retail licensee
  except as provided for in this section:
    (a) for cash to be paid at the time of delivery; or
    (b) on terms requiring payment by such retail licensee for such  beer,
  cider,  or  wine  products  on  or  before the final payment date of any
  credit period within which delivery is made.
    Provided, however, that the sale of wine products or cider to a retail
  licensee by a wholesaler licensed under section fifty-eight,  sixty-two,
  or  seventy-eight  of this chapter, or a licensed manufacturer of liquor
  or wine or  a  cider  producer's  license,  shall  be  governed  by  the
  provisions of section one hundred-one-aa of this article.
    3.  Each  such  manufacturer  and  wholesaler  shall, on or before the
  respective delinquent notice date, give written notice  of  default,  by
  first  class mail, to all such licensees who have failed to make payment
  to the manufacturer or wholesaler on or before their final payment  date
  for beer or wine products sold or delivered to such licensees during the
  previous  credit  period. Any such retail licensee receiving such notice
  shall not thereafter purchase beer or  wine  products  except  for  cash
  until  such  time as the authority determines that its name shall not be
  published on the delinquent list as provided  in  this  subdivision,  or
  until  such  time  as  the authority permits sales or deliveries to such
  licensee as provided in subdivision five  of  this  section.  Each  such

  manufacturer  and wholesaler shall file with the authority, on or before
  each notification date,  copies  of  the  notices  sent  by  it  to  all
  delinquent  retail licensees, and in addition, if the authority shall so
  require,  a  written  list  setting forth the names and addresses of all
  such delinquent licensees. The authority, in its discretion, may  extend
  for a period not exceeding three days the date for giving written notice
  of  default to delinquent retail licensees and extend for three days the
  date for filing with the authority the copies of notices  sent  to  such
  licensees  and/or  the  written list of delinquent retail licensees. The
  authority shall, as soon as practicable after  each  notification  date,
  compile,  publish, and furnish each manufacturer and wholesaler licensed
  under this chapter a delinquent list containing the names and  addresses
  of  all  retail  licensees  who  have been reported by manufacturers and
  wholesalers pursuant to the provisions of this section  or  section  one
  hundred  one-aa  of  this  article  as  having failed to make payment as
  required by this section or section one hundred one-aa of  this  article
  for  beer  or  wine  products  sold  or  delivered  to them, and no such
  manufacturer or wholesaler, on or after the fifth day after the  receipt
  of such delinquent list, shall knowingly, wilfully or intentionally sell
  or  deliver  any  beer  or wine products to any such licensee whose name
  appears on such list, except for cash, until such time as  the  name  of
  such  licensee  is  removed  therefrom, except as otherwise permitted by
  this section. The receipt of a delinquent  list  by  a  manufacturer  or
  wholesaler  shall  constitute  knowledge  of  the  names  of  the retail
  licensees who have failed to make payment for beer or wine  products  as
  required  by this section. The failure of any manufacturer or wholesaler
  to comply with the provisions of this section may, at the discretion  of
  the authority, subject the license of such manufacturer or wholesaler to
  suspension  for  not  more than five days for the first offense, and not
  more than thirty days  for  a  subsequent  offense.  The  authority  may
  publish  the  delinquent  list  on  its website; provided, however, that
  access shall  be  restricted  to  those  manufacturers  and  wholesalers
  licensed  under  this  chapter.  Such  publication  shall  be considered
  receipt thereof by all manufacturers and wholesalers.
    4. In the event that any dispute shall exist between any  manufacturer
  or  wholesaler  and  a  retail  licensee  to  whom  such manufacturer or
  wholesaler shall have sold beer or wine products, either as to the  fact
  of  payment or as to the amount due for such beer or wine products or as
  to the quantity of the beer or wine products sold  or  delivered,  which
  dispute  cannot be adjusted between them, the authority is authorized to
  receive statements from each of the parties to such dispute  as  to  the
  facts  and  circumstances  thereof  and to determine whether or not such
  retail licensee's name should be published on the delinquent list.
    5. The authority in the case of a retail  licensee  who  has  actually
  made  payment  for  beer or wine products, or on good cause shown to it,
  may permit sales or deliveries to any retial licensee who  has  received
  notice of default or who is named on any delinquent list, on terms other
  than  for cash, but within the limitations of this section, prior to the
  publication of the next delinquent list.
    6. The license  of  any  retail  licensee  who  purchases  or  accepts
  delivery  of  beer or wine products on any terms, other than as provided
  in this section, may be suspended for not more than five  days  for  the
  first  offense  and  not more than thirty days for a subsequent offense.
  The failure of any such retail licensee to pay  any  amount  in  default
  before  the  expiration  of the period of suspension shall be deemed and
  punishable  as  a  subsequent  offense  until  paid.  In  addition,  the
  authority  may require any such retail licensee, after default in making

  payment in accordance with  the  provisions  of  this  section  to  make
  payment in cash for beer or wine products subsequently delivered.
    7. Nothing contained in this section shall be construed to require any
  manufacturer  or  wholesaler to extend credit to any retail licensee nor
  to restrain any manufacturer or wholesaler from seeking  to  enforce  by
  legal  action  or  otherwise, payment of any sum or sums of money due or
  alleged to be due to any such manufacturer or  wholesaler  for  beer  or
  wine products sold or delivered to any such retail licensee.
    8. There shall be paid to the liquor authority by each person applying
  after the effective date of this section for any license to sell beer or
  wine  products  to  retailers or upon the renewal of such license, a sum
  equivalent to ten per centum of the annual  license  fee  prescribed  by
  this  chapter  for  each such licensee. Such moneys shall be used by the
  authority to defray the expenses incurred in the administration of  this
  section.
    9.  Notwithstanding  the  law  in  effect at the time of the sale, the
  final payment date for beer and/or  wine  products  sold  prior  to  the
  effective date of this section for which payment has not been made shall
  be  the first final payment date as determined by the provisions of this
  section.