Frequently Asked Questions
These are ABC's most frequently asked questions about:
Q. 108. Is a wholesaler or manufacturer permitted
to have any interest in an on-sale license?
A. A wholesaler, manufacturer, wine grower, rectifier or importer
may hold a small amount of stock in a corporate retail licensee, or serve
on the board of directors of a corporate off-sale licensee, provided the
stock ownership or service on the board of directors, as determined by ABC,
does not result in the exercise of control over the retail licensee's business.
Also, it must not result in the exclusion of any competitor's brand of alcoholic
beverages, and further, the stock is listed on the New York Stock Exchange,
the American Stock Exchange, or NASDAQ. ABC must be notified of the stock
ownership or service on the board of directors. (Section 25503.11)
Q. 109. Are the restrictions placed upon wholesaler-retailer
relations commonly referred to as Tied-House restrictions?
Q. 110. Is it permissible for any type of retail
licensee to have any ownership interest in the business, property or license
of a wholesaler or manufacturer?
A. A retail licensee may hold a small amount of stock in a corporate
licensed manufacturer, wine grower, rectifier, importer, or wholesaler,
provided the purpose of the stock ownership by the retail licensee does
not violate any of the provisions of ABC regulations as determined by ABC.
The stock must be listed on the New York Stock Exchange, the American Stock
Exchange, or on NASDAQ. ABC must be notified of the stock ownership.
Q. 111. May a retail licensee rent space to
a wholesaler for the placing or painting of signs or window displays on
or in retailer's premises?
A. No. It is a misdemeanor for a retail licensee to accept any
money or anything of value for the privilege of placing or painting a sign
or advertisement or window display on or in the licensed premises. (Sections
25503 and 25503.1)
Q. 112. May a retailer accept any payment from
a wholesaler for setting up an advertising display or performing a distribution
service in connection with distilled spirits?
A. No. (Section 25503)
Q. 113. What is consignment sale?
A. It is a sale or delivery of alcoholic beverages under an agreement
whereby title to the alcoholic beverages is retained by the seller or whereby
the licensee receiving the alcoholic beverages has the right at any time
before the sale to return them to the original seller. (Section 25503)
Q. 114. Are consignment sales lawful under the
A. No. A retail licensee may not accept or solicit delivery of
alcoholic beverages on such a basis. (Section 25503)
Q. 115. Is it lawful for a retail licensee to
accept advertising specialties from wholesalers or manufacturers?
A. Yes, a retailer may accept wine and distilled spirits advertising
specialties subject to monetary limitations set forth in Section 25600
and Rule 106. Advertising specialties related to beer or other malt beverages
are considered supply items and may not generally be furnished free to retailers.
Q. 116. When may a manufacturer or wholesaler
make deliveries of alcoholic beverages to retail licensees?
A. Manufacturers or wholesalers may only deliver alcoholic beverages
to a retail licensee's premises between 3 a.m. and 8 p.m. Monday through
Saturday. No deliveries may be made on Sundays.
Any alcoholic beverage may be picked up by the retailer at the distributor's
platform at any time. (Section 25633)
Q. 117. May retailers who hold the same type
license agree to group purchase distilled spirits and wine (pool buying)
from a wholesaler or rectifier?
A. Yes. (Section 24400)