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Texas Alcoholic Beverage Code - ALCO BEV § 102.75. Prohibited Conduct

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A brewer may not:

(1) induce or coerce, or attempt to induce or coerce, any distributor to engage in any illegal act or course of conduct;

(2) require a distributor to assent to any unreasonable requirement, condition, understanding, or term of an agreement prohibiting a distributor from selling the product of any other brewer;

(3) fix or maintain the price at which a distributor may resell malt beverages;

(4) fail to provide to each distributor of its brands a written contract which embodies the brewer's agreement with its distributor;

(5) require any distributor to accept delivery of any malt beverages or any other item or commodity which shall not have been ordered by the distributor;

(6) adjust the price at which the brewer sells malt beverages to a distributor based on the price at which a distributor resells malt beverages to a retailer, but a brewer is free to set its own price so long as any price adjustment is based on factors other than a distributor's increase in the price it charges to a retailer and not intended to otherwise coerce illegal behavior under this section; or

(7) accept payment in exchange for an agreement setting forth territorial rights.

(b) Nothing in this section shall interfere with the rights of a brewer or distributor to enter into contractual agreements that could be construed as governing ordinary business transactions, including, but not limited to, agreements concerning allowances, rebates, refunds, services, capacity, advertising funds, promotional funds, or sports marketing funds.

(c) It is the public policy and in the interest of this state to assure the independence of members of the three-tier system, but nothing in this code may be construed to prohibit contractual agreements between members of the same tier who hold the same licenses and permits.

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Cite this article: FindLaw.com - Texas Alcoholic Beverage Code - ALCO BEV § 102.75. Prohibited Conduct - last updated January 01, 2024 | https://codes.findlaw.com/tx/alcoholic-beverage-code/alco-bev-sect-102-75/

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