Blog
APPEALS COURT DECISION RE: THE MASSACHUSETTS “FRANCHISE LAW.”
Submitted by Elizabeth Lashway, Esq., 12/19/19
Wholesalers and suppliers of alcoholic beverages doing business in Massachusetts should be aware of the Massachusetts Appeals Court decision issued on December 17, 2019, which affirmed a decision of the Alcoholic Beverages Control Commission. See Martignetti Grocery Co., Inc. v. Alcoholic Beverages Control Commission, et al, No. 18-P-1258 (Mass. App. Ct. Dec. 17, 2019). The case was brought under M.G.L. c. 138, § 25E by a wholesaler against the new owner of the Meiomi brand wines. For years, the former owner of the Meiomi wines had sold the wines to the wholesaler for distribution in Massachusetts. The question in the case was whether the former owner’s continued involvement with the brand for a period of time after the sale was sufficient to obligate the new owner to sell the brands to the wholesaler. The Appeals Court found in part that “[a]lthough [the former owner and its winemaker] continued to be involved in winemaking, bottling, and advertising, such activities are not indicative of the type of continuing affiliation that would require [the new owner] to assume the former owner’s § 25E obligations to its Massachusetts wholesalers.”
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ABCC AMENDED ITS INDUCEMENT REGULATION.
Submitted by Elizabeth Lashway, Esq., 12/19/19
On November 14, 2019, the Alcoholic Beverages Control Commission adopted amendments to 204 CMR 2.08, making its emergency amendment to the inducement regulation permanent. The inducement regulation currently reads:
2.08: Inducements
(1) No licensee shall directly or indirectly give or permit to be given money or any other thing of substantial value in any effort to induce any person to persuade or influence any other person to purchase, or contract for the purchase of any particular brand or kind of alcoholic beverages, or to persuade or influence any person to refrain from purchasing, or contracting for the purchase of any particular brand or kind of alcoholic beverages.
(2) No licensee shall directly or indirectly receive or otherwise accept an inducement prohibited under 204 CMR 2.08(1).
See the Commission’s Advisory of 12/18/19: https://www.mass.gov/doc/notice-of-regulation-inducements-204-cmr-208/download
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ABCC ISSUES ADVISORY REGARDING ON-PREMISES LICENSEES SELLING FOR OFF-PREMISES CONSUMPTION.
Submitted by Elizabeth Lashway, Esq., 4/3/20
Massachusetts ABCC on-premises licensees should pay close attention to the recent authorization for them temporarily to sell alcoholic beverages for off-premises consumption. The ABCC’s advisory of today’s date on the issue explains the amount of alcohol permitted to be sold, the times during which it may be sold, and the circumstances under which it may be sold.
See the Commission’s Advisory of 4/3/20: https://www.mass.gov/doc/abcc-advisory-regarding-on-premises-licensees-selling-for-off-premises-consumption/download
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LETTER TO MASSACHUSETTS RETAIL LIQUOR LICENSEES:
Submitted by Elizabeth Lashway, Esq., 4/3/20
These are very tough times. However, you might be able to find extra time in which to make a positive difference in your business for the future. Now is an especially good time to reflect on your liquor license. You might need to shore up your policies on the sale and service of alcoholic beverages. Do you have a written policy related to alcoholic beverages for your employees? Are your employees certified in the sale/service of alcoholic beverages? Also, be sure to confirm that your current operations are reflected in the ABCC’s records. Are your floor plans current? Will you need to change your manager of record? Have there been or are there going to be any changes to ownership? It is imperative that you get prior approval from the ABCC and consequently that your business operations related to the sale and service of alcohol are accurately reflected in the ABCC’s records. Failure to have the ABCC’s approval on certain changes to your business could result in a suspension or even revocation of your license. Similarly, if you implement improved safeguards now relative to the safe sale and service of alcohol, you will be better positioned when the crisis passes. I’m here to help should you need it.
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ABCC ISSUES ADVISORY REGARDING DELINQUENCY REPORTING PERIOD (CREDIT TERMS).
Submitted by Elizabeth Lashway, Esq., 4/15/20
Today, the ABCC ordered that in light of the ongoing hardship to Section 12 licensees resulting from the COVID-19 pandemic, “the credit terms for all invoices issued on or after January 18, 2020 to Section 12 licensees are extended by 60 days to a total of 120 days for payment of those invoices.” The order does not apply to Section 12 licensees who are already on the credit delinquency list. For the full text of the order, see: https://www.mass.gov/doc/abcc-advisory-granting-credit-extension-request/download
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MASSACHUSETTS APPEALS COURT AFFIRMS ABCC DECISION WHICH ORDERED LICENSEE TO NOT POSSESS AUTOMATIC AMUSEMENT DEVICES OR VIDEO POKER MACHINES ON ITS PREMISES.
Submitted by Elizabeth Lashway, Esq., 4/22/20
The Massachusetts Appeals Court has affirmed a decision of the ABCC. The central issue on appeal was whether the ABCC, in issuing a suspension to a Section 12 licensee for permitting gambling on the premises, had the authority to order the licensee to not possess automatic amusement devices or video poker machines on its premises. The Appeals Court concluded that, “the ABCC has the authority to add conditions to an alcohol license that the ABCC issued. . . Indeed, G. L. c. 138, s. 64, empowers the ABCC to place a condition on an alcohol license for violation of any State law.” RK&E Corporation v. Alcoholic Beverages Control Commission, No. 19-P-240 (Mass. App. Ct. April 21, 2020).
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ABCC UPDATES ITS ADVISORY REGARDING DELINQUENCY REPORTING PERIOD (CREDIT TERMS).
Submitted by Elizabeth Lashway, Esq., 5/28/20
The ABCC has updated its advisory concerning the credit terms for invoices issued to certain Section 12 licensees. See the ABCC’s updated order at: https://www.mass.gov/doc/abcc-advisory-granting-credit-extension-request/download
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LASHWAY LAW BECOMES OF COUNSEL TO ARCHSTONE LAW GROUP
Submitted by Elizabeth Lashway, Esq., 1/2022
https://www.archstonelaw.com/archstone-law-group-p-c-announces-of-counsel-collaboration-with-lashway-law-llc/
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