Exclusive outlets.

Utah Code § 32B-4-703, under Part 32B-4-7: Trade Practices Act.

Utah Code § 32B-4-703

32B-4-703. Exclusive outlets.

(1) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to require, by agreement or otherwise, that the department or a retailer purchase a product from the industry member or the department to the exclusion in whole or in part of a product that is sold or offered for sale by another person.

(2) Subsectionapplies only to a transaction between: (1) one or more industry members; and the department; or one or more retailers. Subsectiondoes not apply to a transaction between two or more industry members, including between a manufacturer and a wholesaler. (1)

(3) Subsectionincludes purchases coerced by an industry member through an act or threat of physical or economic harm, as well as through a voluntary industry member-retailer purchase agreement. (1)

(4) Subsectionincludes a contract or agreement, written or unwritten, that has the effect of requiring the department or retailer to purchase an alcoholic product from the industry member beyond a single sales transaction. (1) Examples of a contract or agreement described in Subsectioninclude: (4)(a) an advertising contract between an industry member and a retailer with the express or implied requirement of the purchase of the advertiser's product; or a sales contract awarded on a competitive bid basis that has the effect of prohibiting the department or retailer from purchasing from another industry member by: requiring that the retailer purchase a product or line of products exclusively from the industry member for the period of the agreement; or requiring that the retailer purchase a specific or minimum quantity during the period of the agreement.

(5) Subsectionincludes a contract, agreement, or other arrangement between an industry member and a third party nonretailer that requires the department or a retailer to purchase the industry member's product to the exclusion in whole or in part of a product sold or offered for sale by another person. (1) This Subsectionapplies whether a contract, agreement, or other arrangement originates with the industry member or the third party. (5) Examples of a contract, agreement, or other arrangement described in this Subsectioninclude: (5) a contract, agreement, or arrangement: with a third party, such as a ball club or municipal or private corporation, that is not a retailer; under which the third party leases the concession rights and is able to control the purchasing decisions of a retailer; and that requires the retailer to purchase the industry member's product to the exclusion in whole or in part of a product sold or offered for sale by another person; or a contract, agreement, or arrangement with a third party nonretailer that requires a retailer to purchase the industry member's product to the exclusion in whole or in part of a product sold or offered for sale by another person in return for which the third party provides a service or other thing of value such as: sponsoring radio or television broadcasting; paying for advertising; or providing other services or things of value.