Section 10. Rotation and exchange of stocks of retailers by wholesalers; permitted and prohibited acts

A. Permitted acts. Manufacturers, importers, bottlers, brokers, or wholesalers, or their representatives, may perform, except on Sundays in jurisdictions where local ordinances restrict Sunday sales of alcoholic beverages, the following services for a retailer upon consent, which may be a continuing consent, of the retailer:

1. Rotate, repack, and rearrange alcoholic beverages in a display (shelves, coolers, cold boxes, and the like, and floor displays in a sales area);

2. Restock alcoholic beverages;

3. Rotate, repack, rearrange, and add to his own stocks of alcoholic beverages in a storeroom space assigned to him by the retailer;

4. Transfer alcoholic beverages between storerooms, between displays, and between storerooms and displays; and

5. Create or build original displays using alcoholic beverages only.

B. Prohibited acts. A manufacturer, importer, bottler, broker, or wholesaler, or its representative, may not:

1. Alter or disturb in any way the merchandise sold by another manufacturer, importer, bottler, broker, or wholesaler, whether in a display, sales area, or storeroom except in the following cases:

a. When the products of one manufacturer, importer, bottler, broker, or wholesaler have been erroneously placed in the area previously assigned by the retailer to another manufacturer, importer, bottler, broker, or wholesaler; or

b. When a floor display area previously assigned by a retailer to one manufacturer, importer, bottler, broker, or wholesaler has been reassigned by the retailer to another manufacturer, importer, bottler, broker, or wholesaler;

2. Mark or affix retail prices to products other than those sold by the manufacturer, importer, bottler, broker, or wholesaler to the retailer; or

3. Sell or offer to sell alcoholic beverages to a retailer with the privilege of return, except for ordinary and usual commercial reasons as set forth below:

a. Products defective at the time of delivery may be replaced;

b. Products erroneously delivered may be replaced or money refunded;

c. Products of which a manufacturer or importer discontinues production or importation may be returned and money refunded if no lawful exchange under subdivision 3 g of this subsection is available and if prior written approval is provided by the board;

d. Resalable draft beer may be returned and money refunded;

e. Products in the possession of a retail licensee whose license is terminated by operation of law, voluntary surrender or order of the board may be returned and money refunded upon permit issued by the board;

f. Products which have been condemned and are not permitted to be sold in this Commonwealth may be replaced or money refunded upon permit issued by the board; or

g. Alcoholic beverages may be exchanged on an identical quantity and brand basis for quality control purposes. Where production of the product has been discontinued, the distributor may exchange the product for a product from the same manufacturer on an identical quantity and comparable wholesale price basis. Any such exchange shall be documented by the word "exchange" on the proper invoice.

Historical Notes

Derived from VR125-01-3 § 1, eff. December 12, 1985; amended, Volume 03, Issue 01, eff. November 12, 1986; Volume 04, Issue 06, January 21, 1988; Volume 05, Issue 02, eff. November 24, 1988; Volume 06, Issue 02, eff. November 23, 1989; Volume 07, Issue 04, eff. December 19, 1990; Volume 08, Issue 06, eff. January 15, 1992; Volume 09, Issue 06, eff. January 13, 1993; Volume 10, Issue 11, eff. March 23, 1994; Volume 21, Issue 19, eff. June 29, 2005; Volume 26, Issue 11, eff. March 5, 2010; Volume 30, Issue 06, eff. December 18, 2013.

Statutory Authority

§ 4.1-111 of the Code of Virginia.