32B-4-707 (Effective 07/01/11) - Consignment sale. - Utah Statutes

32B-4-707 (Effective 07/01/11). Consignment sale.
(1) This section adopts and makes applicable to an industry member, including a beerindustry member, doing business in this state, 27 U.S.C. Sec. 205(d) and 27 C.F.R. Sec. 11.1through 11.46, which make it unlawful for an industry member, directly or indirectly, or throughan affiliate to sell, offer for sale, or contract to sell to any wholesaler or retailer engaged in thesale of an alcoholic product, or for any wholesaler or retailer to purchase, offer to purchase, orcontract to purchase any of those products on consignment or under conditional sale or with theprivilege of return or on any basis otherwise than a bona fide sale, or where any part of thetransaction involves, directly or indirectly, the acquisition by that person from the wholesaler orretailer or that person's agreement to acquire from the wholesaler or retailer other alcoholicbeverages, if the sale, purchase, offer, or contract is made in the course of interstate or foreigncommerce, or if the person or wholesaler or retailer engages in such practice to an extent so assubstantially to restrain or prevent transactions in interstate or foreign commerce in any of thoseproducts or if the direct effect of the sale, purchase, offer, or contract is to prevent, deter, hinder,or restrict other persons from selling or offering for sale any of those products to the wholesaleror retailer in interstate or foreign commerce.
(2) This section does not apply to a transaction involving solely the bona fide return ofmerchandise for ordinary and usual commercial reasons arising after the merchandise has beensold.

Enacted by Chapter 276, 2010 General Session