(1) Manufacturer,
Importer, Non-Resident Seller, and Non-manufacturer Non-Resident Seller.
(a) No manufacturer or representative of the
same shall have any kind of direct or indirect interest in any wholesaler or
any retail on-premise or off-premise establishment in Tennessee. A prohibited
interest includes the possessing of any financial or other interest in the
establishment, providing or having interest in any fixtures or furnishings,
stock ownership, loans, gifts, the securing of loans, the guaranteeing of any
loan payment, or participating in the profits.
(b) No importer, non-resident seller,
non-manufacturer non-resident seller, or representative of the same shall have
any kind of direct or indirect interest in any retail on-premise or off-premise
establishment in Tennessee. A prohibited interest includes the possessing of
any financial or other interest in the establishment, providing or having
interest in any fixtures or furnishings, stock ownership, loans, gifts, the
securing of loans, the guaranteeing of any loan payment, or participating in
the profits.
(c) An importer,
non-resident seller, non-manufacturer non-resident seller, or representative of
the same may have a direct or indirect interest in a wholesaler.
(d) "Indirect interest" as used in this Rule
means any kind of interest in the wholesaler, retail on-premise, or retail
off-premise establishment by way of stock ownership, loan, partner's interest,
or control, including the use of a brand name, trademark, or sponsorship of
the, manufacturer wholesaler, importer, non-resident seller, non-manufacturer
non-resident seller, or representative of the same.
(e) "Direct or indirect interest" between 1)
a manufacturer, importer, non-resident seller, non-manufacturer non-resident
seller, or representative of the same and 2) an on-premise establishment does
not include:
1. An interest held by a spouse
or child over the age of twenty-one (21) as separate and distinct property;
provided, that there is no commingling of assets or sharing of control in such
arrangement;
2. An interest of a
person or entity having less than a five percent (5%) ownership interest in a
manufacturer, importer, non-resident seller, non-manufacturer nonresident
seller, or on-premise establishment; or
3. An interest held in an irrevocable trust
by an independent trustee
(2) Wholesaler and Retailer.
No wholesaler, and no partner, member, or person owning stock
in a corporation licensed as a wholesaler, and no employee of same, shall have
any interest in any business licensed as an on-premise or off-premise retailer,
and no retailer and no retailer's employee, shall have any such interest in any
wholesale establishment. A prohibited interest includes the possessing of any
financial or other interest in the establishment, providing or having interest
in any fixtures or furnishings, stock ownership, loans, gifts, the securing of
loans, the guaranteeing of any loan payment, or participating in the
profits.
