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Law You Can Use Update

Posted on  | December 21, 2012   Bookmark and Share
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[Notes from recent SLA meeting. Look for further information in February installment of New York's Know the Law column.]
 
THE LIQUOR AUTHORITY SENDS A WARNING

At the beginning of a full board meeting, held in New York City on December 19, 2012, the Members of the Authority sent a strong message to wholesalers and retailers.  A wholesaler was charged with multiple counts of selling goods at prices other than that posted on its retail schedule and selling goods which were not posted at all.  In addition, although not a listed charge, the Authority investigated the wholesaler’s method of operations.  The Authority found that the wholesaler sold its goods to a limited number of retailers, rather than to the entire retail market.  

Following the hearing, the Authority accepted the wholesaler’s conditional no contest plea.  The wholesaler’s license was suspended for a period of 30 days during the month of January.  During that time, the wholesaler will be permitted to remain open only to review its mail, accept payments for deliveries made prior to the suspension and report retailers who were in default.  In order to sell in February, a wholesaler must post its February prices to retailers during the month of January. The suspended wholesaler will not be permitted to make such a price posting and therefore will not be able to sell any goods during the month of February.  For all intents and purposes, this means the wholesaler will be shut down for two full months.  In addition, the wholesaler must pay a fine of $120,000.00.


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