Pillsbury Winthrop Shaw Pittman

Nevada’s AG reminds retailers, wholesalers and suppliers: comply with alcohol beverage laws

By James M Seff, Carrie L Bonnington, Jerry R Jolly and Joseph L Cruz

On 30 January 2014, the State of Nevada Attorney-General’s Office issued an open letter to all retailers, wholesalers and suppliers of alcohol beverages in Nevada, reminding them of their legal obligation to comply with the provisions of Nevada’s alcohol beverage laws.

Nevada, like most states, prohibits certain transactions and relationships between retailers, wholesalers and suppliers. Perhaps the most significant restrictions apply to wholesalers and retailers. Among other things, a wholesaler may not ‘loan any money or other thing of value to’, ‘invest money, directly or indirectly in’, ‘furnish or provide any premises, building, bar or equipment to’ or ‘participate, directly or indirectly, in the operation of the business of’ a retailer. NRS §§ 369.485(3) et seq.

But suppliers must also be mindful to comply with Nevada law. For example, Nevada law prohibits suppliers from requiring a wholesaler to split profits, accept delivery of product that was not voluntarily ordered by the wholesaler or set prices after delivery. NRS §§ 597.162 et seq. and 597.165…

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