§ 57-6-104 — Wholesale prices, container sizes, and sales territories - Regulations - Information declared public record

(a) Each wholesaler shall maintain a wholesale price list, and shall file the list with the department and with the tax collecting official of each county and municipality wherein the wholesaler makes wholesale sales. Notice of any change in such price list shall be delivered to the department and the tax collecting official of each county and municipality as aforementioned. Notices required herein shall be filed as follows: (1) In case of a new business or a wholesaler acquiring a new brand not previously distributed, a price list shall be filed within five (5) days after either occurrence; and (2) In case of any change in an existing price list previously filed, a revised price list shall be filed at least three (3) days prior to the effective date of any change. (b) A wholesaler shall not be permitted to file a wholesale price list that reduces the price of beer on quantity sales by brand, container, material and category even though the quantity wholesale price is uniform to all retailers and to all other persons. The price shall be fixed on each brand sold by container, material and category. It shall be the same price regardless of the quantity of beer sold of a given brand by container, material and category. (c) (1) A wholesaler shall not sponsor or participate in any price-cutting maneuver, device or promotion by changing the wholesale price of beer of a given brand, container, material and category. As used in this section, "category" means cans, returnable bottles, nonreturnable bottles, kegs and barrels; "container" means size in ounces; "material" means the principal material used to manufacture each category type, including, but not limited to, metal, glass or plastic. (2) Nothing in this section shall prevent a wholesaler from permanently reducing the wholesale price of beer. However, any such wholesale price reduction to be construed to be permanent must remain in effect for at least three hundred sixty (360) days, or otherwise it shall be considered a wholesale beer price-cutting maneuver, device or promotion, and in direct violation of this section. (3) Any wholesaler has the authority to increase the wholesale price of beer, and, in such an event, the increased wholesale price shall be construed and considered to be the posted wholesale beer price. There shall be no limitation on the number of increases of the wholesale price of beer allowed any wholesaler, but no increased wholesale price of beer shall be reduced by the wholesaler for at least three hundred sixty (360) days. (4) Nothing in this section shall prevent a wholesaler from changing the wholesale price of beer on sales made only at the wholesaler's warehouse to retailers and other persons, regardless of the time element, as referred to in this section in cases of emergency where a wholesaler is unable to make delivery of beer to retail establishments. (5) Nothing in this section shall prevent a wholesaler from raising the wholesale price of beer during a three hundred sixty (360) day posting period in an amount less than or equal to any increase in the federal excise tax or the state privilege tax levied in § 57-5-201 . Such price increase shall be filed within ten (10) days of the date the tax increase takes effect. (d) All wholesale beer price lists in their entirety are hereby declared to be a public record. (e) Every manufacturer or importer of beer as defined in § 57-6-102 shall designate sales territories for each of its brands sold in Tennessee, and shall name one (1) licensed beer wholesaler in each territory who, within such territory, shall be the exclusive wholesaler for the brand or brands; provided, that if any such manufacturer or importer supplies more than one (1) brand, exclusive territories may be granted to a different wholesaler for the sale of each brand. No wholesaler shall distribute the specified brand or brands of beer outside such wholesaler's assigned territory, or shall knowingly sell to a retailer whose licensed retail establishment is located outside such wholesaler's assigned territory. (f) (1) Within thirty (30) days after March 15, 1973, or within ten (10) days prior to the introduction of a new brand of beer in a territory, each manufacturer or importer shall submit to the commissioner, in duplicate, a sworn affidavit containing a description of the geographical boundaries of each territory for each brand of its products, the name and address of the wholesaler and the notarized signature of the wholesaler. Territories in effect on February 1, 1973, and those territories established for new brands entering the market subsequent to that date, shall constitute the exclusive sales territory for the brands and wholesalers involved. Should a manufacturer or importer desire to change wholesalers, or in any way alter the territory of a wholesaler for any brand, such manufacturer or importer shall file with the commissioner and each wholesaler involved, not less than ninety (90) days prior to the effective date of such change, a notarized notice of intent, in duplicate, containing: (A) A description of the geographical boundaries of the proposed territory; (B) The name and address of the wholesaler currently distributing such brand or brands in the territory; (C) The name and address of the proposed wholesaler and the notarized signature of the proposed wholesaler; and (D) The name and address of all persons or firms having a financial interest in the proposed wholesale business. (2) The ninety-day waiting period shall be waived if the proposed change is agreeable to all parties involved. (g) The designated territory of beer wholesalers shall be deemed to be a matter of public record, and a copy shall be made available upon request to the commissioner. (h) A violation of this section is a Class C misdemeanor.

Legislative History

Acts 1953, ch. 76, § 5 (Williams, § 1051.22); Acts 1969, ch. 171, § 2; 1973, ch. 6, § 3; 1974, ch. 571, § 1; T.C.A. (orig. ed.), § 57-305; Acts 1986, ch. 524, §§ 2, 3; 1987, ch. 75, § 1; 1989, ch. 13, § 1; 1989, ch. 591, § 113; 1990, ch. 617, § 1; 1990, ch. 618, § 13; 1995, ch. 89, § 1; 1998, ch. 857, §§ 2, 3; 2002, ch. 856, § 1d; 2005, ch. 499, §§ 10 - 14.