Florida Statute 561.42 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIV
ALCOHOLIC BEVERAGES AND TOBACCO

Chapter 561
BEVERAGE LAW: ADMINISTRATION

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F.S. 561.42

561.42 Tied house evil; financial aid and assistance to vendor by manufacturer, distributor, importer, primary American source of supply, brand owner or registrant, or any broker, sales agent, or sales person thereof, prohibited; procedure for enforcement; exception.—

(1) No manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant of any of the beverages herein referred to, whether licensed or operating in this state or out-of-state, nor any broker, sales agent, or sales person thereof, shall have any financial interest, directly or indirectly, in the establishment or business of any vendor licensed under the Beverage Law; nor shall such manufacturer, distributor, importer, primary American source of supply, brand owner or brand registrant, or any broker, sales agent, or sales person thereof, assist any vendor by any gifts or loans of money or property of any description or by the giving of any rebates of any kind whatsoever. No licensed vendor shall accept, directly or indirectly, any gift or loan of money or property of any description or any rebates from any such manufacturer, distributor, importer, primary American source of supply, brand owner or brand registrant, or any broker, sales agent, or sales person thereof; provided, however, that this does not apply to any bottles, barrels, or other containers necessary for the legitimate transportation of such beverages or to advertising materials and does not apply to the extension of credit, for liquors sold, made strictly in compliance with the provisions of this section. A brand owner is a person who is not a manufacturer, distributor, importer, primary American source of supply, brand registrant, or broker, sales agent, or sales person thereof, but who directly or indirectly owns or controls any brand, brand name, or label of alcoholic beverage. Nothing in this section shall prohibit the ownership by vendors of any brand, brand name, or label of alcoholic beverage.

(2) Credit for the sale of liquors may be extended to any vendor up to, but not including, the 10th day after the calendar week within which such sale was made.

(3) In cases when payment for sales to a vendor is not made by the 10th day succeeding the calendar week in which such sale was made, the distributor who made such sale shall, within 3 days, notify the division in writing of such fact; and the division, upon receipt of such notice, shall, after compliance with the proceedings hereinafter mentioned, declare in writing to such vendor and to all manufacturers and distributors within the state that all further sales to such vendor are prohibited until such time as the division certifies in writing that such vendor has fully paid for all liquors previously purchased. However, if a distributor received payment within the 3-day period following the 10th day succeeding the calendar week in which the sale was made, the distributor, if notification to the division has not already been made, is not required to notify the division. Payments so made within the 3-day period do not constitute a violation of this section.

(4) Before the division shall so declare and prohibit such sales to such vendor, within 2 days after receipt of such notice the division shall give notice to such vendor by electronic mail of the receipt by the division of such notification of delinquency and such vendor shall be directed to forthwith make payment thereof or, upon failure to do so, to show cause before the division why further sales to such vendor may not be prohibited. Good and sufficient cause to prevent such action by the division may be made by showing payment, failure of consideration, or any other defense which would be considered sufficient in a common-law action. The vendor shall have 5 days after service of such notice via electronic mail within which to show such cause, and he or she may demand a hearing thereon, provided he or she does so in writing within said 5 days, such written demand to be delivered to the division either in person, by electronic mail, or by due course of mail within such 5 days. If no such demand for hearing is made, the division shall thereupon declare in writing to such vendor and to all manufacturers and distributors within the state that all further sales to such vendor are prohibited until such time as the division certifies in writing that such vendor has fully paid for all liquors previously purchased. In the event such prohibition of sales and declaration thereof to the vendor, manufacturers, and distributors is ordered by the division, the vendor may seek review of such decision by the Department of Business and Professional Regulation within 5 days. In the event application for such review is filed within such time, such prohibition of sales may not be made, published, or declared until final disposition of such review by the department.

(5) Upon receipt by the division from the distributor of the notice of nonpayment provided for by subsection (3), the division shall forthwith notify such delinquent vendor and all distributors in the state that no further purchases or sales of liquor by or to such vendor, except for cash, shall be made until good cause is shown by such vendor as heretofore provided for. No liquor shall be purchased by such vendor or sold to him or her by any distributor, except for cash, from and after such notification by the division and until such cause is shown as is provided for in subsection (4). In the event no good cause is shown, then all further sales, for cash or credit, are hereby prohibited after such declaration in writing by the division is sent to such vendor and distributors and until all delinquent accounts have been paid.

(6) Nothing herein shall be taken to forbid the giving of trade discounts in the usual course of business upon wine and liquor sales.

(7) The extension or receiving of credits in violation of this section shall be considered as an arrangement for financial assistance and shall constitute a violation of the Beverage Law and any maneuver, shift, or device of any kind by which credit is extended contrary to the provisions of this section shall be considered a violation of the Beverage Law.

(8) The division may adopt rules and require reports to enforce, and may impose administrative sanctions for any violation of, the limitations established in this section on credits, coupons, and other forms of assistance.

(9) The term “advertising materials” as used in this section does not include outside signs so located as to be connected with or appertaining to the vendor’s licensed premises.

(10) No manufacturer, distributor, importer, primary American source of supply, brand owner, or brand registrant of the beverages referred to herein, or any broker, sales agent, or sales person thereof, shall directly or indirectly give, lend, rent, sell, or in any other manner furnish to a vendor any outside sign, printed, painted, electric, or otherwise; nor shall any vendor display any sign advertising any brand of alcoholic beverages on the outside of his or her licensed premises, on any lot of ground of which the licensed premises are situate, or on any building of which the licensed premises are a part.

(11) A vendor may display in the interior of his or her licensed premises, including the window or windows thereof, neon, electric, or other signs, including window painting and decalcomanias applied to the surface of the interior or exterior of such windows, and posters, placards, and other advertising material advertising the brand or brands of alcoholic beverages sold by him or her, whether visible or not from the outside of the licensed premises, but no vendor shall display in the window or windows of his or her licensed premises more than one neon, electric, or similar sign, advertising the product of any one manufacturer.

(12) Any manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant, or any broker, sales agent, or sales person thereof, may give, lend, furnish, or sell to a vendor who sells the products of such manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant any of the following: neon or electric signs, window painting and decalcomanias, posters, placards, and other advertising material herein authorized to be used or displayed by the vendor in the interior of his or her licensed premises.

(13) A licensee under the Beverage Law may not possess or use, in physical or electronic format, any type of malt beverage coupon or malt beverage cross-merchandising coupon in this state, where:

(a) The coupon is produced, sponsored, or furnished, whether directly or indirectly, by an alcoholic beverage manufacturer, distributor, importer, brand owner, or brand registrant or any broker, sales agent, or sales person thereof; and

(b) The coupon is or purports to be redeemable by a vendor or other person who sells malt beverages to consumers in the state.

(14) The division shall adopt reasonable rules governing promotional displays and advertising. Such rules may not conflict with or be more stringent than the federal regulations pertaining to such promotional displays and advertising furnished to vendors by distributors, manufacturers, importers, primary American sources of supply, or brand owners or registrants, or any sales agent or sales person thereof; however:

(a) If a manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, provides a vendor with branded expendable retailer advertising specialties such as trays, coasters, mats, menu cards, napkins, cups, glassware, thermometers, and the like, such items may be sold only at a price not less than the actual cost to the industry member who initially purchased them, without limitation in total dollar value of such items sold to a vendor. However, a distributor that receives glassware at no charge on a no-charge invoice from a malt beverage manufacturer or importer may give such glassware to a vendor licensed to sell malt beverages for on-premises consumption. Each piece of glassware given to a vendor by a distributor must bear a permanent brand name intended to prominently advertise the brand. A distributor may not give a vendor more than 10 cases of glassware per calendar year per licensed premises. A vendor that receives a gift of glassware from a distributor may not sell the glassware or return it to a distributor for cash, credit, or replacement. A manufacturer or importer who sells or gives glassware to a distributor, a distributor who sells or gives glassware to a vendor, and such vendor, must maintain records of such sale or gift of glassware.

1. These records must be maintained for 3 years by the industry member. The records may be in any format so long as they are available and legible to division personnel upon request during normal business hours. A copy of any record maintained or produced in compliance with this paragraph shall be provided to each industry member who receives such glassware. The copy shall be in a format accessible and readable by the recipient and may not be provided in an electronic format that would require proprietary software unavailable to the recipient. These records must show:

a. The name and address of the recipient, the recipient’s employee or agent receiving the glassware;

b. The recipient’s license number;

c. The date furnished or given;

d. The description and quantity of glassware furnished or given;

e. The cost to the industry member determined by the original purchaser’s invoice price;

f. The charges to the recipient for the glassware, if any; and

g. The name, license number, and address of the industry member providing the glassware.

2. As used in this paragraph, the term:

a. “Case” means a box containing up to 24 pieces of glassware.

b. “Glassware” means a single-service glass container that can hold no more than 23 ounces of liquid volume.

(b) Without limitation in total dollar value of such items provided to a vendor, a manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, may rent, loan without charge for an indefinite duration, or sell durable retailer advertising specialties such as clocks, pool table lights, and the like, which bear advertising matter.

(c) If a manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, provides a vendor with consumer advertising specialties such as ashtrays, T-shirts, bottle openers, shopping bags, and the like, such items may be sold only at a price not less than the actual cost to the industry member who initially purchased them, and may be sold without limitation in total value of such items sold to a vendor.

(d) A manufacturer, distributor, importer, brand owner, or brand registrant of malt beverage, or any sales agent or sales person thereof, may provide consumer advertising specialties described in paragraph (c) to consumers on any vendor’s licensed premises.

(e) A manufacturer, distributor, importer, brand owner, or brand registrant of malt beverages, and any sales agent or sales person thereof or contracted third-party, may not engage in cooperative advertising with a vendor and may not name a vendor in any advertising for a malt beverage tasting authorized under s. 563.09.

(f) A distributor of malt beverages may sell to a vendor draft equipment and tapping accessories at a price not less than the cost to the industry member who initially purchased them, except there is no required charge, and the distributor may exchange any parts that are not compatible with a competitor’s system and are necessary to dispense the distributor’s brands. A distributor of malt beverages may furnish to a vendor at no charge replacement parts of nominal intrinsic value, including, but not limited to, washers, gaskets, tail pieces, hoses, hose connections, clamps, plungers, and tap markers.

History.—s. 4, ch. 16774, 1935; CGL 1936 Supp. 4151(230); s. 1, ch. 22078, 1943; s. 6, ch. 23746, 1947; s. 1, ch. 25260, 1949; s. 1, ch. 25340, 1949; s. 10, ch. 26484, 1951; s. 28, ch. 57-420; ss. 16, 35, ch. 69-106; s. 208, ch. 71-377; s. 1, ch. 72-230; s. 1, ch. 75-97; s. 9, ch. 78-95; s. 30, ch. 79-4; s. 3, ch. 84-142; s. 10, ch. 84-262; s. 1, ch. 85-166; s. 1, ch. 87-226; s. 217, ch. 94-218; s. 34, ch. 97-98; s. 849, ch. 97-103; s. 1, ch. 2008-226; s. 1, ch. 2013-145; s. 3, ch. 2015-12; s. 70, ch. 2016-10; s. 1, ch. 2018-135; s. 17, ch. 2021-135.

F.S. 561.42 on Google Scholar

F.S. 561.42 on Casetext

Amendments to 561.42

Arrestable Offenses / Crimes under Fla. Stat. 561.42

Level: Degree
Misdemeanor/Felony: First/Second/Third

S561.42 1 - LIQUOR - MFGR DISTR GIVE VENDOR FINANC ASSIST 1ST OFF - M: S

S561.42 1 - LIQUOR - MFGR/DISTR GIVE VENDOR FINANC ASSIST SUBSQ OFF - F: T

Annotations, Discussions, Cases:

Cases Citing Statute 561.42

Total Results: 20

JJ Taylor Companies, Inc. v. DEPT. OF BUSINESS AND PROFESSIONAL REGULATION

Court: Fla. Dist. Ct. App. | Date Filed: 1999-01-21T23:53:00-08:00

Citation: 724 So. 2d 192

Snippet: alcoholic beverages (Taylor) for violating section 561.42(5), Florida Statutes (1995).[1] The administrative…and VAN NORTWICK, JJ., CONCUR. NOTES [1] Section 561.42(5) prohibits liquor sales to delinquent vendors

Winn Dixie Stores, Inc. v. Schenck Co.

Court: Fla. Dist. Ct. App. | Date Filed: 1995-11-17T00:00:00-08:00

Citation: 662 So. 2d 1021, 1995 Fla. App. LEXIS 12089, 1995 WL 680453

Snippet: but that the “Tied House Evil Statute,” section 561.42, Florida Statutes,1 barred Winn Dixie from recovering…Schenck cross-appeals. Statutes such as section 561.42(1) are aimed at the evil known as the “tied house…executed in 1968. The constitutionality of section 561.42 was upheld in Pickerill. We do agree, however, …. GRIFFIN and THOMPSON, JJ., concur. . Section 561.42(1), Florida Statutes, provides in relevant part

ST. v. Falls Chase Spec. Taxing Dist.

Court: Fla. Dist. Ct. App. | Date Filed: 1983-01-20T23:53:00-08:00

Citation: 424 So. 2d 787

Snippet: Hypothetical circuit court allegation: Because section 561.42(1) prohibits only "the giving of a gift, loan

Anheuser-Busch, Inc. v. Dept. of Business

Court: Fla. Dist. Ct. App. | Date Filed: 1981-02-10T23:53:00-08:00

Citation: 393 So. 2d 1177

Snippet: vacationing collegians at Daytona Beach violated Section 561.42(1), Florida Statutes (1979), the "Tied House…quot; to retail vendors, in violation of Section 561.42(1), which provides: (1) No licensed manufacturer…credits and other forms of assistance," Section 561.42(8), the Division has promulgated Rules 7A-1.09 …than such discounts as are permitted under Section 561.42, Florida Statutes [allowing trade discounts in …in the usual course of business, Section 561.42(6)]; and as such they are prohibited. 7A-1.10 Gift. The

ABC Liquors, Inc. v. Dept. of Business Regulation

Court: Fla. Dist. Ct. App. | Date Filed: 1981-02-10T23:53:00-08:00

Citation: 397 So. 2d 696

Snippet: ;bar spending" violated Florida Statutes § 561.42, which prohibits the giving of "any gifts

Jax Liquors, Inc. v. DIVISION OF ALCOHOLIC, ETC.

Court: Fla. Dist. Ct. App. | Date Filed: 1980-10-07T00:53:00-07:00

Citation: 388 So. 2d 1306

Snippet: Division by the Tied House Evil statute, Section 561.42, Florida Statutes (1979) and that (2) the statute…the Division's rule-making authority, Section 561.42(8), nor its power thereby to require public posting

ABC Liquors, Inc. v. City of Ocala

Court: Fla. Dist. Ct. App. | Date Filed: 1979-01-15T23:53:00-08:00

Citation: 366 So. 2d 146

Snippet: * * The plain and specific language of Section 561.42 clearly provides sufficient standards for the adoption… and mentioned in Footnote 8, supra. [14] F.S. 561.42. [15] Emphasis added. [16] 324 So.2d at page

CASTLEWOOD INTERN. CORP. v. Simon

Court: Fla. | Date Filed: 1979-01-10T23:53:00-08:00

Citation: 367 So. 2d 613

Snippet: usual course of business and thus exempted from § 561.42 by subsection (6). Under the amended section, it…1976). [5] The present prohibition is found in § 561.42(1), Fla. Stat. (1977), which provides: No licensed…giving of any rebates of any kind whatsoever. [6] § 561.42(6), Fla. Stat. (1977); Rev.Rul. 161, 1954-1 C.B

Central Florida Distributing Co. v. Jackson

Court: Fla. Dist. Ct. App. | Date Filed: 1975-12-02T23:53:00-08:00

Citation: 324 So. 2d 143

Snippet: .18 contributes an invalid extension of Section 561.42, Florida Statutes; (2) whether Central's right…suspension to a civil penalty of $2,000.00. Section 561.42 provides that no distributor shall have any financial…that it shall be considered a violation of Section 561.42 for any distributor to rent any property to any…the vendor's business. The purpose of Section 561.42 is to prohibit any financial obligation between…1951). The plain and specific language of Section 561.42 clearly provides sufficient standards for the adoption

Lely Estates, Inc. v. Polly

Court: Fla. Dist. Ct. App. | Date Filed: 1975-02-07T00:00:00-08:00

Citation: 308 So. 2d 165, 1975 Fla. App. LEXIS 14502

Snippet: v. Atlantic Coast Line Railroad Co., 227 N.C. 561, 42 S.E.2d 905; Graham Farm Land Co. v. Commonwealth

Castlewood International Corp. v. Wynne

Court: Fla. | Date Filed: 1974-10-23T00:00:00-07:00

Citation: 305 So. 2d 773, 1974 Fla. LEXIS 4110

Snippet: without expressly treating § 561.42, F.S., we now consider the facets of § 561.42(1), (2) and (7), F.S. (in…ruled that while § 562.21, F.S., was void, Sections 561.42(1), (2) and (7), F.S., remained in force and required…Chapter 22078, Laws of Florida, amended the prior § 561.42, F.S., and stated in pertinent part as follows:…Next, in 1947, Chapter 23746, Laws of Florida, § 561.42 F.S., limited the credit for “liquors” sold to … day credit for “liquors”. Sub-section (8) of § 561.42, F.S., additionally states: “ . [njothing herein

Castlewood International Corporation v. Wynne

Court: Fla. | Date Filed: 1974-04-17T00:53:00-07:00

Citation: 294 So. 2d 321

Snippet: week within which such sale was made' (F.S. § 561.42, F.S.A.); "(b) Beer and wine vendors are discriminated

Musleh v. Fulton Distributing Co.

Court: Fla. Dist. Ct. App. | Date Filed: 1971-12-02T00:00:00-08:00

Citation: 254 So. 2d 815, 1971 Fla. App. LEXIS 5794

Snippet: assistance by gift in violation of F.S. Section 561.42, F.S.A., commonly referred to as the Tied House…, and CARROLL, DONALD K., J., concur. . F.S. § 561.42(1), (6), (7), (8), F.S.A. . Pickerill v. Schott

B. J. Overstreet v. Lee

Court: Fla. Dist. Ct. App. | Date Filed: 1963-04-16T00:00:00-08:00

Citation: 152 So. 2d 201, 1963 Fla. App. LEXIS 3615

Snippet: Overstreet states two points on his appeal : “1. Section 561.42, Florida Statutes, violates the United States Constitution…and argument toward the proposition that Section 561.42 requires the Beverage Department Director to determine…in detail the lengthy provisions of F.S. Section 561.42, F.S.A., in view of the able and detailed opinion…wholesaler of liquors by a retailer of liquors. Section 561.42 declares as an evil the selling of liquors by a…Chief Judge,, and WIGGINTON, J., concur. . F.S., § 561.42, F.S.A. . Section 8, Declaration of Rights. “

Collins v. Farley

Court: Fla. Dist. Ct. App. | Date Filed: 1962-12-11T00:00:00-08:00

Citation: 147 So. 2d 593

Snippet: v. Atlantic Coast Line Railroad Co., 227 N.C. 561, 42 S.E.2d 905; Graham Farm Land Co. v. Commonwealth

Collins v. Farley

Court: Fla. Dist. Ct. App. | Date Filed: 1962-02-01T00:00:00-08:00

Citation: 137 So. 2d 31, 1962 Fla. App. LEXIS 3608

Snippet: v. Atlantic Coast Line Railroad Co., 227 N.C. 561, 42 S.E.2d 905; see Graham Farm Land Co. v. Commonwealth

State v. Altman

Court: Fla. | Date Filed: 1958-10-30T23:53:00-08:00

Citation: 106 So. 2d 401

Snippet: Sections 561.05, 561.20, 561.29, 561.32, 561.34, 561.42, 561.43, 561.44, 561.45, 561.47, 561.54, 562.02

James v. Golson

Court: Fla. | Date Filed: 1957-01-15T23:53:00-08:00

Citation: 92 So. 2d 180

Snippet: license was suspended in the manner provided by Sec. 561.42, Florida Statutes Annotated. In this situation

Hunter v. McKnight

Court: Fla. | Date Filed: 1956-03-28T00:00:00-08:00

Citation: 86 So. 2d 434, 1956 Fla. LEXIS 3659

Snippet: Section 561.42(10), supra, and we agree. The statute with which we are here concerned, Section 561.42, Fla.Stat…the facts, there has been a violation of Section 561.-42(10), Fla.Stat. 1953, F.S.A. The problem is one …the vendor’s licensed premises.”' F.S.A. § 561;42(9). Finally, in 1949, by Chapter 25260, also, by… now Subsections (10), (11) and (12) of Section 561.42, Fla.Stat.1953, F.S.A. By this, amendment the Legislature…attained, it is clear that Subsection (10) of Section 561.42 does not prohibit, per sc, the location of a sign

Pickerill v. Schott

Court: Fla. | Date Filed: 1951-12-17T23:53:00-08:00

Citation: 55 So. 2d 716

Snippet: merchandise within the time required by Section 561.42, Florida Statutes 1949, F.S.A. It is unnecessary… that the Statute in question; that is, Section 561.42, known as the "Tied House Evil" law is…is significant to note that the original Section 561.42, which was Section 4 of Chapter 16,774, Laws of…in 1949 by Chapter 25,340, which is now Section 561.42 under attack. This amendment in 1949 was nothing…appellants and find that they are without merit. Section 561.42, Florida Statutes, F.S.A., does not violate any