Chapter 12Beer Price Posting and Marketing Regulations
Section § 25000
Beer makers, importers, and wholesalers must file a list of their beer prices with the California department and keep it updated, except when transferring beer between wholesalers of the same brand or when a contract beer maker transfers to a beer manufacturer. Prices should be listed for each county based on fair geographical differences, not for special customers, and should be for immediate delivery. A contract beer maker produces beer under a secret recipe for another manufacturer without owning a stake in that company. They can only sell the beer to the contracting manufacturer. This rule also defines a beer manufacturer as anyone with a beer license or certificate, including those out of state.
Section § 25000.2
This section deals with the process that must occur when a new beer manufacturer (or their chosen distributor) plans to take over distribution rights from an existing beer wholesaler. It involves notifying the current wholesaler, negotiating for fair market value compensation for the distribution rights, and using arbitration if an agreement can't be reached. If the current wholesaler and the new distributor can't agree on value within 30 days, they must enter arbitration within 40 days. During arbitration, specific rules apply, like document exchanges and the agreement on an arbitrator. The decision made through arbitration is final unless appealed, and it's focused only on money, not actions. If the current wholesaler isn’t paid as agreed post-arbitration or settlement, they stay as the distributor. However, good faith settlements between the parties are encouraged and not restricted by this law.
Section § 25000.5
If a beer maker sells and distributes beer in California, they must specify specific areas where wholesalers can sell their beer. Wholesalers can't sell a beer brand without a written agreement with the beer maker outlining these areas, and this agreement must be filed with the appropriate department.
Section § 25000.6
This law says that any contract between a beer maker and a beer distributor in California cannot force legal disputes to be settled outside of California. If there's any issue related to this contract, it must be handled in California. This rule applies to any of these agreements made after this law took effect. The term 'beer manufacturer' includes any type of licensed beer producer, whether they are based in-state or out-of-state, as well as beer and wine importers.
Section § 25000.7
This law protects beer wholesalers from having their contracts with beer manufacturers terminated just because they didn't meet a sales target that wasn't realistic given current market conditions. It also clarifies that the term 'beer manufacturer' includes various types of license holders related to beer production and importation.
Section § 25000.9
This law means that if a beer manufacturer unfairly refuses to allow or approve a sale or transfer of a beer wholesaler's business, they can be sued and might have to pay for any losses caused. The focus is on making sure any decision blocking a sale is reasonable. Damages awarded cannot be more than what the wholesaler actually lost, including the business's fair value, which could include things like reputation or goodwill. There are different rules if the wholesaler has already been paid for the sale by a new wholesaler. Here, the manufacturer only pays the difference between what was paid and the true value of the wholesaler's business. Finally, this applies to any licensed beer makers or importers.
Section § 25001
This law explains that a licensed business can update the price lists they have submitted to the department. They can do this by filing a new price list or by submitting changes to the existing one, following the rules set by the department.
Section § 25002
If you're a business with a license and you file your first price list, it takes effect right away. But if you file changes to that list, they won't kick in for 10 days. However, if you're adjusting prices to match a competitor’s lower prices in your area, those changes can take effect immediately if the competitor's prices are already active or will take effect at the same time as the competitor's new prices.
Section § 25003
This law says that price schedules, which are lists of prices that a business plans to charge, are available for the public to see only after they have taken effect. Businesses must keep a copy of their current price schedule on-site at their business location.
Section § 25004
This law says that once a business has set and filed a list of prices, they must stick to these prices. If they charge any differently, it's considered a crime, except for certain transfers of beer between wholesalers. Each time they break this pricing rule, it's only counted as one offense, no matter how many items are involved in that sale.
Section § 25005
If someone who works with a licensed company knowingly helps break the rules of this chapter or any department rules, they're just as guilty as the company itself.
Section § 25006
This law allows the relevant department to create rules about how beer is marketed and distributed at the wholesale level. However, before they can make any rules, they must hold a public hearing and inform all licensed beer manufacturers in California at least ten days in advance about the hearing details and what kind of rules they plan to introduce.
Section § 25007
This law states that manufacturers, importers, or wholesalers have the freedom to choose who they want to do business with, except where another law specifically says otherwise.
Section § 25008
This law allows trade associations, made up of licensed beer manufacturers or wholesalers who sell most of the beer in California, to take legal action to stop any illegal activities related to specific beer laws. They can also seek compensation if they are harmed by these activities. Moreover, these associations can join ongoing legal or administrative proceedings about alcohol regulations to help ensure the laws are enforced properly, even if they weren't initially part of these cases. They get the same rights in the case as the other parties involved.
Section § 25009
This law says that if you're a defendant or witness in certain legal cases, your records can be presented in court. However, any information from these records can't be used to charge you with a misdemeanor under this specific set of laws.
Section § 25010
This law states that a license won't be suspended or revoked by the department for violating rules unless the person has committed at least three violations in one year. These violations must be proven by one of the following methods: being convicted of a misdemeanor, having a civil court issue an injunction, or a department finding after a hearing.