OAR 845-013-0020
Money, Credit, Discounts; ORS 471.398(2) and 471.400(3)(a)
(1)
“Money, Credit”: ORS 471.398 (Prohibition of financial assistance from wholesaler to retailer)(2) prohibits a manufacturer or wholesaler from providing money or credit to a retailer. A manufacturer or wholesaler may, however:(a)
Give credit or cash, with the Commission’s prior written approval, for malt beverage or wine that a retailer returns:(A)
When the retailer terminates the business or seasonal license;(B)
When the retailer temporarily stops operating due to unforeseen circumstances like fire, flood or other natural disasters;(C)
When the retailer temporarily stops operating for more than 29 days; or(D)
After holding a Temporary Sales license event except for Full On-Premises Sales licenses.(b)
Give credit for wine or malt beverages that the retailer cannot exchange as allowed in OAR 845-013-0070 (Services of Nominal Value; ORS 471.398(5))(3)(d) and (3)(e) because the manufacturer or wholesaler has no saleable product available. However, the manufacturer or wholesaler must:(A)
Apply the credit to the retailers next purchase;(B)
Get the Commissions prior written approval if the credit is for more than one case; and(C)
Limit the amount of the credit to the retailers original purchase price for the product.(2)
“Non-Alcoholic Product Credit Sales”: ORS 471.400 (Exceptions to prohibition of financial assistance) (3)(a) allows a manufacturer or wholesaler licensee to sell non-alcoholic products in the manner in which non-licensee manufacturers and wholesalers sell them. With regard to credit, the Commission has determined that the usual industry practice allows credit sales with full payment within 45 days of delivery. Therefore, a manufacturer or wholesaler may sell non-alcoholic products on credit. The retailer must, however, pay for these credit purchases in full within 45 days of the delivery date. If the retailer does not, both the manufacturer or wholesaler and the retailer have violated ORS 471.400 (Exceptions to prohibition of financial assistance)(3)(a). The manufacturer or wholesaler has not given financial assistance under this section if he/she gives the Commission written notification by no later than the 37th day that the retailer has not paid for the product. He/she will also send the retailer a copy of the notice.(3)
“Discounts”: ORS 471.398 (Prohibition of financial assistance from wholesaler to retailer)(2) and 474.115 (Wholesale sale of malt beverage subject to agreement designating territory of sale)(4)(a) prohibit a manufacturer or wholesaler from giving discounts to a retailer. The manufacturer or wholesaler and the retailer have violated these prohibitions if the manufacturer or wholesaler contracts with the retailer for delivery of alcoholic beverages more than ten days in the future.(4)
Despite section (3) of this rule: A manufacturer or wholesaler may sell existing vintage-dated wines for future delivery by written contract prior to winery release if the manufacturer or wholesaler:(a)
Offers this opportunity to all their retail license customers at the same general time subject to availability;(b)
Keeps a copy of the contract;(c)
Keeps a record of the offering that includes the names of the retail licensees who were given the opportunity to participate in the offering and an explanation of the method used to make the offering.
Source:
Rule 845-013-0020 — Money, Credit, Discounts; ORS 471.398(2) and 471.400(3)(a), https://secure.sos.state.or.us/oard/view.action?ruleNumber=845-013-0020.