(1) A brewer or distributor shall not sell alcoholic beverages to any person in this state
for any consideration except for cash paid at or before the time of delivery.
For purposes of this section, "cash" includes the sale of malt beverages by electronic
transfers if the following conditions are met:
(a) The use of electronic transfers shall be voluntary and shall be agreed to by the
affected brewer, distributor, and retailer;
(b) The brewer shall not pay or credit back in any way to the distributor any share
of the cost that is attributable to the electronic transfer;
(c) The distributor shall not pay or credit back in any way to the retailer any share
of the cost that is attributable to the electronic fund transfer;
(d) The transfer of funds shall be initiated by the brewer or the distributor;
(e) The distributor may debit the retailer's bank account for the exact amount due
based on the amount of alcoholic beverages delivered;
(f) Electronic fund transfers that are rejected or denied at the time of sale for any
reason shall be treated in the same manner as checks drawn on insufficient
funds; and
(g) Each participating retail licensee and each distributor maintain accurate
records of all electronic fund transfers in accordance with department statutes
and administrative regulations.
(2) A brewer or distributor shall not furnish or deliver any returnable bottled malt
beverage without collecting a minimum container charge or deposit of sixty cents
($0.60) per case of twenty-four (24) twelve-ounce bottles or its equivalent in the
same manner that the price of the malt beverage is collected.
(3) This section shall not prohibit a licensee from crediting to a purchaser the actual
prices charged for packages or containers returned by the original purchaser as a
credit on any sale, or from refunding to any purchaser the amount paid by the
purchaser for containers or as a deposit on containers when the title is retained by
the vendor, if the containers or packages have been returned to the brewer or
distributor.
(4) No right of action shall exist to collect any claim for credit extended contrary to this
section.
(5) This section shall not apply to sales by wholesalers or distributors to licensees that
are private clubs or voluntary associations.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 585, effective July 15, 2010. -- Amended
1998 Ky. Acts ch. 522, sec. 16, effective July 15, 1998. -- Amended 1978 Ky. Acts
ch. 194, sec. 28, effective June 17, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1,
effective October 1, 1942, from Ky. Stat. sec. 2554b-156.
Notes of Decisions
Alcoholic Beverage Control Bd. v. Hunter, 331 S.W.2d 280 (Ky. Ct. App. 1960).
· cites it 5× “The purported authority for the issuance of this regulation is KRS 244.040(1), which reads: “No brewer, wholesaler or distributor shall sell any alcoholic beverages to any person in this state for any consideration except for cash paid at or before the time of delivery.”
Roppel v. Shearer, 321 S.W.2d 36 (Ky. Ct. App. 1959).
· cites it 2× “:2:90 Retail Credit Sales by-Brewer, Distributor and Retailer Relates to KRS 244.040 and KRS 244.050. “No brewer, distributor or retailer of malt beverages shall sell,- deliver or give away, or cause, permit or procure to be sold, delivered or given away any malt beverages on…”
Sterling Brewers, Inc. v. Williamson, 269 S.W.2d 249 (Ky. Ct. App. 1954).
“This case involves KRS 244.040 which prohibits a brewer, wholesaler or distributor from selling “any alcoholic beverages to any person in this state for any consideration except for cash paid at or before the time of delivery” and stipulates that “No right of action shall exist…”
Alcoholic Beverage Control Bd. v. Haeseley, 331 S.W.2d 284 (Ky. Ct. App. 1960).
· cites it 2× “Appellant charged that appellees had disobeyed “Regulation ABC 2:80” and the terms of KRS 244.040 (1) by giving checks in payment for malt beverages and distilled spirits when there were insufficient funds in the bank the checks were drawn on to pay them.”
Gross v. Johnson, 256 S.W.2d 489 (Ky. Ct. App. 1953).
“The Court is of the opinion that the sale made by movant was a sale on credit, which is prohibited by -KRS 244.040(1), and the statute by its express provision denie's recovery to the seller.”
— Ky. Rev. Stat. § 244.040(1) — 3 cases
Alcoholic Beverage Control Bd. v. Hunter, 331 S.W.2d 280 (Ky. Ct. App. 1960).
“The purported authority for the issuance of this regulation is KRS 244.040(1), which reads: “No brewer, wholesaler or distributor shall sell any alcoholic beverages to any person in this state for any consideration except for cash paid at or before the time of delivery.”
Gross v. Johnson, 256 S.W.2d 489 (Ky. Ct. App. 1953).
“The Court is of the opinion that the sale made by movant was a sale on credit, which is prohibited by -KRS 244.040(1), and the statute by its express provision denie's recovery to the seller.”
Alcoholic Beverage Control Bd. v. Haeseley, 331 S.W.2d 284 (Ky. Ct. App. 1960).
“Appellant charged that appellees had disobeyed “Regulation ABC 2:80” and the terms of KRS 244.040 (1) by giving checks in payment for malt beverages and distilled spirits when there were insufficient funds in the bank the checks were drawn on to pay them.”
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